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Do Expectations Match Reality When Firms Consider the Risks of Offshoring? A Comparison of Risk Assessment by Firms with and Without Offshoring Experience
Published on Jan 1, 2013
· DOI :10.1007/978-1-4471-4908-8_16
Peter D. Ørberg Jensen12
Estimated H-index: 12
(Copenhagen Business School),
Torben Pedersen44
Estimated H-index: 44
(Copenhagen Business School),
Bent Petersen26
Estimated H-index: 26
(Copenhagen Business School)
Abstract
The risk associated with offshoring is a recurrent theme in research. However, previous research has mainly given a static picture of offshoring risks even though the strategies of offshoring firms, including their views on risks, may change as they gain experience in the field. In this chapter we investigate the influence of organizational learning on firms’ perceptions of the risks in offshoring. We use survey data from firms in Scandinavia and compare the risk assessments of firms without offshoring experience with firms that engage in offshoring. The findings show that firms without offshoring experience particularly stress exogenous risks while firms with offshoring experience see the endogenous risks as important. We offer two different interpretations of these results.
  • References (42)
  • Cited By (1)
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References42
Published on Nov 1, 2006
Leslie P. Willcocks64
Estimated H-index: 64
,
Mary C. Lacity44
Estimated H-index: 44
Customer and Supplier Learning on IT and Business Service Practices Managing 54 Processes in the Sourcing Life Cycle Retaining Nine Core Capabilities In-House Assessing Twelve Supplier Capabilities The Winner's Curse in IT Outsourcing: The Case of Esso Outsourcing Human Resources: The Case of BAE Systems Outsourcing Indirect Procurement: The Case of BAE Systems Managing Knowledge When Outsourcing: Cases in Financial Services Offshoring of IT Work: 20 Practices How Corporations E-Source Applicati...
120 Citations Source Cite
Published on Jan 1, 2009
Masaaki Kotabe47
Estimated H-index: 47
,
Kristiaan Helsen15
Estimated H-index: 15
Overview: Theoretical Paradigms, Issues and Debates - Masaaki Kotabe and Kristiaan Helsen PART ONE: CHANGING MARKET ENVIRONMENTS The Ancient Road: An Overview of Globalization - Terry Clark, Monica Hodis and Paul D'Angelo The Changing Global Political and Institutional Environment - Jonathan Doh and Terrence Guay Marketing and the Global Legal Environment - Subhash Jain and Robert Bird PART TWO: CONSUMER BEHAVIOR RESEARCH Consumer Cognition across Cultures - Bernd H Schmitt and Nader Tavassoli N...
22 Citations
Published on Jan 1, 2004
Jette Schramm-Nielsen2
Estimated H-index: 2
,
Peter A. Lawrence55
Estimated H-index: 55
,
Karl Henrik Sivesind2
Estimated H-index: 2
1. Making the Case 2. Context 3. Breweries in Scandinavia 4. Furniture 5. Confectionary and Food Production 6. Shipbuilding and More Besides 7. Differences and Similarities 8. Present and Prospect Index
31 Citations
Published on Jun 1, 2006in Long Range Planning 3.22
Arie Y. Lewin38
Estimated H-index: 38
(Duke University),
Carine Peeters12
Estimated H-index: 12
(Duke University)
This paper reports the findings from the Offshoring Research Network (ORN), which studies the offshoring of administrative and technical work to low-cost countries. Initial data suggest that offshoring is still at an early stage but growing rapidly. However, as the practice of offshoring becomes more widely adopted it is likely to fundamentally change the way companies in the industrialised high-cost economies organise to compete globally. The picture that emerges is that adoption of offshoring ...
243 Citations Source Cite
Published on Jan 1, 1999in Sloan Management Review
James Brian Quinn21
Estimated H-index: 21
Today's knowledge- and service-based economy offers companies a chance to increase profits through strategic outsourcing of intellectually based systems. As companies disaggregate intellectual activities internally and outsource more externally, they approach true virtual organization with knowledge centers interacting largely through mutual interest and electronic ? rather than authority ? systems. In this article, Quinn outlines an integrated knowledge and outsourcing strategy that can mitigat...
927 Citations
Published on Aug 1, 1989in Journal of Business Research 2.51
Masaaki Kotabe47
Estimated H-index: 47
(University of Missouri)
Abstract This article examines a widely debated issue: the “hollowing-out” of U.S. multinationals. Using path analysis applied to the benchmark survey of U.S. direct investment abroad for 1977 and 1982, the study shows that the “hollowness” of U.S. multinationals is indicative of their global competitiveness, although causal relationships are not obvious. “Hollowing-out” may be an offshoot of the deindustrialization of the U.S. economy; it may alternatively signify “reindustrialization” of U.S. ...
54 Citations Source Cite
Published on Jan 1, 2009
Masaaki Kotabe47
Estimated H-index: 47
,
Michael J. Mol16
Estimated H-index: 16
,
Janet Y. Murray24
Estimated H-index: 24
39 Citations
Published on Jun 1, 2009in Journal of International Management 2.30
Peter D. Ørberg Jensen12
Estimated H-index: 12
(Copenhagen Business School)
110 Citations Source Cite
Published on Feb 1, 2008in Management International Review 2.28
Masaaki Kotabe47
Estimated H-index: 47
(Kobe University),
Michael J. Mol16
Estimated H-index: 16
(University of Reading),
Sonia Ketkar1
Estimated H-index: 1
(Towson University)
Abstract and Key Results • Outsourcing has gained much prominence in managerial practice and academic discussions in the last two decades or so. Yet, we still do not understand the full implications of outsourcing strategy for corporate performance. No general explanation has so far been provided for how outsourcing could lead to deterioration in a firm’s competence base. We longitudinally analyze three cases of major consumer electronics manufacturers, Emerson Radio from the U.S., Japan’s Sony ...
61 Citations Source Cite
Published on Oct 1, 2007in Academy of Management Review 8.86
Nicholas Argyres21
Estimated H-index: 21
(Boston University),
Kyle J. Mayer18
Estimated H-index: 18
(University of Southern California)
Our aim is to unpack contract design capabilities for detailed commercial contracts, to draw out implications for the locus of such capabilities within the firm, and to examine implications for exploiting those capabilities as a potential source of competitive advantage. We argue that developing contract design capabilities involves learning how much and what kinds of detail to include in a contract. We further argue that knowledge about the management of these trade-offs resides differentially ...
340 Citations Source Cite
Cited By1
Published on Jan 1, 2018in Journal of International Business Studies 6.20
Torben Schubert14
Estimated H-index: 14
(Lund University),
Elisabeth Baier6
Estimated H-index: 6
,
Christian Rammer20
Estimated H-index: 20
We develop a behavioural framework of bounded rational decision-making under uncertainty to analyse the role of technological dynamism in the firm’s environment for its decision to internationalise innovation. Applying prospect theory, we argue that technological uncertainty in the firm’s environment affects its risk preferences differently depending on its technological capabilities. A key prediction is that firms with low capabilities will internationalise innovation when faced by technologica...
3 Citations Source Cite
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