IDEAS home Printed from https://ideas.repec.org/p/cir/cirwor/2009s-05.html
   My bibliography  Save this paper

The Impact of Distance on Offshore Business Relationships

Author

Listed:
  • Benoit A. Aubert
  • Suzanne Rivard
  • Mathieu Templier

Abstract

Offshoring can reduce the production cost of an activity. At the same time, it can generate additional management costs. This paper develops a model explaining the main drivers of the efforts required to manage offshore activities. Results show that distance plays an important role in the determination of the effort level. However, it is not simply a cultural or geographical but a more complex notion labelled perceived distance. IT played an interesting role in the determination of effort. It facilitated a higher formalization of the information exchanged and mitigated the impact of geographical distance on the effort required. La délocalisation des activités permet parfois de réduire le coût de ces activités. En même temps, cette délocalisation génère des coûts de gestion additionnels. Cet article développe un modèle expliquant les principaux facteurs qui influencent l'effort de gestion requis pour gérer des activités à distance. Les résultats montrent que la distance a un rôle important. Toutefois, ce n'est pas simplement la distance géographique ou culturelle mais plutôt une « distance perçue » qui semble le facteur déterminant. Les technologies de l'information facilitent la formalisation de l'information échangée et réduisent l'impact de la distance sur l'effort de gestion.

Suggested Citation

  • Benoit A. Aubert & Suzanne Rivard & Mathieu Templier, 2009. "The Impact of Distance on Offshore Business Relationships," CIRANO Working Papers 2009s-05, CIRANO.
  • Handle: RePEc:cir:cirwor:2009s-05
    as

    Download full text from publisher

    File URL: http://www.cirano.qc.ca/files/publications/2009s-05.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bert Scholtens & Lammertjan Dam, 2007. "Cultural Values and International Differences in Business Ethics," Journal of Business Ethics, Springer, vol. 75(3), pages 273-284, October.
    2. J. Bradford Jensen & Lori G. Kletzer, 2005. "Tradable Services: Understanding the Scope and Impact of Services Outsourcing," Working Paper Series WP05-9, Peterson Institute for International Economics.
    3. Bart Nooteboom, 2000. "Learning by Interaction: Absorptive Capacity, Cognitive Distance and Governance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 4(1), pages 69-92, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Offshoring; distance; information technology; délocalisation; distance; technologies de l'information.;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:cirwor:2009s-05. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster). General contact details of provider: http://edirc.repec.org/data/ciranca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.