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The Strategic Nexus of Offshoring and Outsourcing Decisions
Published on Dec 1, 2010in Journal of Management Studies 5.33
· DOI :10.1111/j.1467-6486.2010.00947.x
Ram Mudambi42
Estimated H-index: 42
(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)
  • Cited By (179)
Published on Jan 1, 2006in Harvard Business Review 4.37
Thomas R. Eisenmann12
Estimated H-index: 12
Geoffrey Parker19
Estimated H-index: 19
Marshall W. Van Alstyne1
Estimated H-index: 1
Si usted hace un listado con los productos y servicios extraordinarios que han redefinido el panorama global de negocios, va a descubrir que muchos de ellos enlazan en red a dos grupos diferentes de usuarios. Un ejemplo: la innovacion mas importante en servicios financieros desde la Segunda Guerra Mundial es casi con certeza la tarjeta de credito, que enlaza a consumidores y vendedores. La lista tambien incluiria a los periodicos, las organizaciones de mantenimiento de salud (HMO, por Health Mai...
215 Citations
Published on May 1, 2005in Research-technology Management 1.80
Bianca Piachaud1
Estimated H-index: 1
OVERVIEW: Properly implemented, technology outsourcing can provide a number of strategic benefits, including improved quality, focus, flexibility, and leverage. But for companies to reap these benefits, their strategic sourcing decisions must take into consideration a number of factors. These include the protection, development and exploitation of core activities, as well as the need to relate sourcing decisions to the organization's competitive business strategy. The complex issues and assumpti...
12 Citations
Published on Jul 1, 2000in Research-technology Management 1.80
Robert Buderi1
Estimated H-index: 1
How does an organization balance the agenda of central research with the needs of its business units? The experience of Hewlett-Packard, IBM, NEC, and Siemens yields three distinct models. OVERVIEW: As global competition intensifies and the proprietary age ends for once-dominant companies, these organizations are seeking ways to better couple research to development and business groups. As a result, the funding of central research organizations has come under increasing scrutiny. There are sever...
6 Citations Source Cite
Published on Jan 1, 2001
James M. Rubenstein9
Estimated H-index: 9
Contents: 1. From Mass Production 2. To Lean Production 3. From Making Parts 4. To Buying Parts 5. From Deskilling the Workforce 6. To Reskilling Labor 7. From a Class-based Market 8. To a Personal Market 9. From Dealing with Customers 10. To Serving Customers 11. From a National Market 12. To an International Market
18 Citations
Published on Feb 24, 2008
William P. Barnett23
Estimated H-index: 23
47 Citations
Published on Jan 1, 2000
Alan M. Rugman55
Estimated H-index: 55
Professor Alan Rugman is one of the world's leading academics in the field of international business and strategy. In The End of Globalization he argues that we are currently witnessing the end of globalization and draws on new research and analysis to argue that globalization never really happened anyway. Like Bartlett and Ghoshal's Managing Across Borders, this book is aimed at the market of practitioners and policy-makers, (not academics and theoreticians) showing them what the current state ...
276 Citations
Published on Oct 1, 1984
Robert K. Yin17
Estimated H-index: 17
Foreword, by Donald T. Campbell Preface 1. INTRODUCTION: How to Know Whether and When to Use Case Studies as a Research Method The Case Study as a Research Method Comparing Case Studies With Other Research Methods in the Social Sciences Different Kinds of Case Studies, But a Common Definition Summary 2. DESIGNING CASE STUDIES: Identifying Your Case(s) and Establishing the Logic of Your Case Study General Approach to Designing Case Studies Criteria for Judging the Quality of Research Designs Case...
65.1k Citations
Published on Jan 1, 1990in Harvard Business Review 4.37
C. K. Prahalad40
Estimated H-index: 40
(University of Michigan),
Gary Hamel25
Estimated H-index: 25
(London Business School)
Development of a firm's core competencies is identified as the key for global leadership and competitiveness in the 1990s. NEC, Honda, and Canon are used as exemplars of firms that conceive of themselves in terms of core competencies. Core competencies are the organization's collective learning and ability to coordinate and integrate multiple production skills and technology streams; they are also about the organization of work and delivery of value in services and manufacturing. A firm must con...
11.1k Citations Source Cite
Published on Dec 1, 2002in European Management Journal 2.37
Hong Liu1
Estimated H-index: 1
Kequan Li1
Estimated H-index: 1
Recent years have witnessed the emergence of Chinese multinationals with a presence in both developed and developing countries. Yet little is known about them. This paper presents a case study of one of the leading Chinese multinationals, the Haier Group. It addresses the internationalization strategy that has made Haier successful, factors influencing the strategy, and the strategic implications for both Western and Chinese companies.
121 Citations Source Cite
Cited By179
Published on Sep 21, 2014
Anand Nandkumar6
Estimated H-index: 6
(Indian School of Business),
Kannan Srikanth9
Estimated H-index: 9
(University of Southern Denmark)
The internationalization of R&D activity by multinational enterprises (MNEs) is increasing, with a recent big push towards emerging economies. Understanding how MNEs organize collaborative R&D across geographies is therefore an important area of scholarship. However, little attention has been paid towards understanding the factors that influence the division of innovative labor within an MNE across geographies – the internal division of innovative labor. Drawing on the literature that shows that...
Source Cite
Published on Jan 1, 2012
Silvia Massini14
Estimated H-index: 14
Arie Y. Lewin38
Estimated H-index: 38
Purpose – To discuss how coevolutionary framework is useful to research emerging and evolving phenomena, such as global sourcing of business services, where West meets East. Approach – The authors first introduce the phenomenon of global sourcing of business services and then review extant literature on coevolutionary research. Findings – The authors discuss how global sourcing is a coevolutionary and multilevel phenomenon, which can be better understood by identifying micro and macro factors (t...
Source Cite
Published on Sep 26, 2011
Knut Erik Bang1
Estimated H-index: 1
(University of Stavanger),
Tore Markeset17
Estimated H-index: 17
(University of Stavanger)
Globalization has changed the world. Thispaper aims to contribute to the understanding of how companies’ competitive situation is affected by globalization. The paper identifies the main drivers of economic globalization and categorizes the effects into size effects, location effects and pressure effects. Size relates to the magnitude of the potential competition. Location relates to the potential impact on a company’s activities in terms of what to do where and by whom. Pressure effects are the...
3 Citations Source Cite
Published on Jun 1, 2016in Journal of International Business Studies 6.20
Julien Gooris2
Estimated H-index: 2
Carine Peeters12
Estimated H-index: 12
(Katholieke Universiteit Leuven)
This study shows that, when sourcing business services in foreign countries, the fragmentation of processes across production units acts as an operational-level adjustment variable for firms to adapt their information protection approach to the regulative environment of the host country they have selected and to the possibility to use internal controls over the activities performed abroad. We hypothesize that, when the above mechanisms are not available, firms are more likely to fragment process...
14 Citations Source Cite
Published on Jan 1, 2015
Hao Tan14
Estimated H-index: 14
(University of Newcastle),
Stephen Chen19
Estimated H-index: 19
(University of Newcastle)
In a broad sense, service offshoring is a specific type of service innovation because companies engaging into service offshoring will have to inevitably make changes in a number of areas, including internal procedures, business model, service delivery, technology, target customers, service content, legal environment of service, and so on. In addition, service innovation may also drive service offshoring, in that innovative service companies are more likely to internationalize and be successful t...
1 Citations Source Cite
Published on Jan 1, 2014
For a long time, companies have been using outsourcing as main strategy to overcome obstacles and gain competitive advantage. The reasons for doing so are many, including the possibility of cutting ...
Published on Feb 1, 2016in International Business Review 2.75
Marcus Møller Larsen9
Estimated H-index: 9
(Copenhagen Business School)
This article investigates cost estimation errors in the context of offshoring. It is argued that an imprecise estimation of the costs related to implementing a firm activity in a foreign location has a negative impact on the process performance of that activity. Performance is deterred as operations are likely to be disrupted by managerial distraction and resource misallocation. It is also argued that this relationship is mitigated by the extent to which firms use modularity to coordinate the ac...
11 Citations Source Cite
Published on Jan 1, 2015
Anthony Mitchell1
Estimated H-index: 1
This paper outlines research exploring differences in approach to outsourcing and offshoring by multinational corporations. In particular, a comparison is drawn between German and UK headquartered organizations in the airline / transport and also the engineering sectors. A novel conceptual framework is developed that uses differing varieties of capitalism (VoC) to compare and contrast a series of criteria. Underlying theory that is drawn from the resource based view (RBV) of the firm and global ...
4 Citations
Published on Jan 1, 2011
Oli R. Mihalache5
Estimated H-index: 5
Mashiho Mihalache2
Estimated H-index: 2
Justin Jansen20
Estimated H-index: 20
Purpose – The purpose of this chapter is to analyse the influence of offshoring on entrepreneurial activity (i.e. the introduction of new products and services). Methodology/approach – Conceptual Practical implication – The framework proposed in this study provides some indication to managers about designing an offshoring strategy. Particularly, we aim to inform managers that offshoring various functions may differentially influence firm innovation and that the effect also depends on the governa...
2 Citations Source Cite
View next paperReconceptualizing the Firm in a World of Outsourcing and Offshoring: The Organizational and Geographical Relocation of High-Value Company Functions