International diversification, performance and offshoring : the case of the computer services industry
This article deals with the internationalization process in the computer services industry. It discusses two aspects of internationalization: the relationship between international diversification and firm performances and the new process of offshoring part of the business to low-cost countries. Analysis is based on a proprietary database covering data for the industry's 45 largest companies for the past nine years (1998-2006). It shows that product internationalization has not generated substantial profits for firms that have given priority to international growth. Non sequitur, though precise data is lacking, it seems that it has become common practice over the last five years to outsource parts of the business to subsidiaries in low-cost countries. We do not find any relation between offshoring and profitability or internationalization. The internationalization of process and product seems to be disconnected.
|Date of creation:||Sep 2008|
|Date of revision:|
|Publication status:||Published in XVIII international RESER conference “New horizons for the role and production of services”, Stuttgart, 25-26 septembre 2008, Sep 2008, Stuttgart, Germany|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00348198|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Oberhofer, W & Kmenta, J, 1974. "A General Procedure for Obtaining Maximum Likelihood Estimates in Generalized Regression Models," Econometrica, Econometric Society, vol. 42(3), pages 579-90, May.
- Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 325-342, June.
- Brock, David M. & Yaffe, Tal & Dembovsky, Mark, 2006. "International diversification and performance: A study of global law firms," Journal of International Management, Elsevier, vol. 12(4), pages 473-489, December.
- Frances A Katrishen & Nicos A Scordis, 1998. "Economies of Scale in Services: A study of Multinational Insurers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 305-323, June.
- Farok J Contractor & Sumit K Kundu & Chin-Chun Hsu, 2003. "A three-stage theory of international expansion: the link between multinationality and performance in the service sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 5-18, January.
- Lenn Gomes & Kannan Ramaswamy, 1999. "An Empirical Examination of the Form of the Relationship Between Multinationality and Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 173-187, March.
- J.R. Bryson, 2001. "Services and Internationalisation: Annual Report on the Progress of Research into Service Activities in Europe in 1998," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 227-240, January.
- Contractor, Farok J. & Kumar, Vikas & Kundu, Sumit K., 2007. "Nature of the relationship between international expansion and performance: The case of emerging market firms," Journal of World Business, Elsevier, vol. 42(4), pages 401-417, December.
- N Capar & M Kotabe, 2003. "The relationship between international diversification and performance in service firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 345-355, July.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00348198. 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: (CCSD)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.