Role of corporate-wide offshoring strategy on offshoring drivers, risks and performance

Silvia Massini*, Nidthida Perm-Ajchariyawong, Arie Y. Lewin

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

52 Citations (Scopus)

Abstract

In this study we investigate the role of corporate offshoring strategy on offshoring decisions and performance. Based on 876 offshoring projects from 226 companies obtained by means of surveys conducted in the USA and Europe, we examine the effect of offshoring strategy on factors influencing firms' views of offshoring, and the effect of offshoring strategy on offshoring performance. Separate analyses were conducted for US and European companies in order to explore any regional heterogeneity in offshoring. A comparative analysis between companies with and without an offshoring strategy reveals that when making offshoring decisions, the former consider a broader range of factors (drivers, risks and locations) as important compared to companies without an offshoring strategy, suggesting association between offshoring strategy and managerial attention. The results also indicate that the adoption of a corporate offshoring strategy has a significant positive effect on cost savings achieved from offshore implementations, and that innovation activities have a significant negative impact on cost savings, but only for European companies.

Original languageEnglish
Pages (from-to)337-371
Number of pages35
JournalIndustry and Innovation
Volume17
Issue number4
DOIs
Publication statusPublished - 27 Aug 2010
Externally publishedYes

Keywords

  • Attention-based view
  • Offshoring
  • Offshoring of business services
  • Offshoring performance
  • Offshoring strategy

Fingerprint Dive into the research topics of 'Role of corporate-wide offshoring strategy on offshoring drivers, risks and performance'. Together they form a unique fingerprint.

Cite this