The Strategic Nexus of Offshoring and Outsourcing Decisions

Published on Dec 1, 2010in Journal of Management Studies5.84
· DOI :10.1111/j.1467-6486.2010.00947.x
Ram Mudambi42
Estimated H-index: 42
(TU: Temple University),
Markus Venzin9
Estimated H-index: 9
(Bocconi University)
One important effect of the increasing integration of the world economy is the rising importance of possibilities to offshore and outsource value-creating activities. In many industries, firms are able to disaggregate their value chains into smaller parts. This process allows for a less path-dependent approach to the firm's ideal location profile (through offshoring and relocation) and control strategies (through outsourcing). This article argues that optimal decisions regarding individual processes recognize the linkages of these processes with the firm's entire value chain. The article explores the magnitude, sequence, and dynamics of interdependent decisions regarding the location and control of various parts of the value chain. By using case illustrations from the mobile handset and financial services industries, this article provides a novel perspective on the disintegration, mobility, and reintegration of value chain activities in a global context.
  • References (77)
  • Citations (180)
#1Klaus E. Meyer (University of Bath)H-Index: 41
#2Ram Mudambi (TU: Temple University)H-Index: 42
Last.Rajneesh Narula (University of Reading)H-Index: 37
view all 3 authors...
#1Yuan Li (SJTU: Shanghai Jiao Tong University)H-Index: 33
#2Zelong Wei (Xi'an Jiaotong University)H-Index: 10
Last.Yi Liu (SJTU: Shanghai Jiao Tong University)H-Index: 27
view all 3 authors...
#1Andrew Delios (NUS: National University of Singapore)H-Index: 37
#2Paul W. Beamish (UWO: University of Western Ontario)H-Index: 59
Last.X. Zhao (NUS: National University of Singapore)H-Index: 1
view all 3 authors...
Cited By180
#1Liubov Ermolaeva (SPbU: Saint Petersburg State University)
#2Konstantin Nefedov (SPbU: Saint Petersburg State University)
Last.Dmitrii Viktorov (SPbU: Saint Petersburg State University)
view all 4 authors...
#1José Pla-Barber (University of Valencia)H-Index: 13
#2Esmeralda Linares (University of Valencia)H-Index: 1
Last.Pervez N. Ghauri (University of Birmingham)H-Index: 40
view all 3 authors...
#1Alessio Ishizaka (University of Portsmouth)H-Index: 23
#2Arijit Bhattacharya (UEA: University of East Anglia)H-Index: 15
Last.Vijay Pereira (Khalifa University)H-Index: 9
view all 5 authors...
#1Michael J. Maloni (KSU: Kennesaw State University)H-Index: 16
#2James Anthony Swaim (KSU: Kennesaw State University)H-Index: 3
Last.James Wermert (KSU: Kennesaw State University)
view all 4 authors...
#1Li Wan (University of Udine)
#2Guido Orzes (Free University of Bozen-Bolzano)H-Index: 10
Last.Guido Nassimbeni (University of Udine)H-Index: 22
view all 5 authors...
#1Rongyao Zhang (ODU: Old Dominion University)
#2Kan Wang (HUST: Huazhong University of Science and Technology)
View next paperUnderstanding offshoring: A research framework based on disintegration, location and externalization advantages