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A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent

Published on Aug 1, 2008in Academy of Management Perspectives 3.86
· DOI :10.5465/AMP.2008.34587994
Manning Stephan1
Estimated H-index: 1
(Duke University),
Massini Silvia1
Estimated H-index: 1
(University of Manchester),
Y Lewin Arie1
Estimated H-index: 1
(Duke University)
The seemingly unlimited availability of science and engineering (S&E) talent in emerging economies and the increasing difficulties of finding such talent in advanced economies have given rise to a new trend: the global sourcing of S&E talent. This paper examines the antecedents and dynamics of this trend. In particular, it examines the coevolution of macroeconomic forces, domestic and offshore national policies, industry dynamics, and firm-level offshoring capabilities driving today's offshoring decisions. The analysis exploits findings from the Offshoring Research Network (ORN) project. By taking a dynamic and multilevel perspective on next-generation offshoring, this paper may inform both firm-level strategies and national policy-making.
  • References (83)
  • Citations (357)
Published on Jan 1, 2016
Su-Yan Pan1
Estimated H-index: 1
(HKU: University of Hong Kong)
Recent literature on globalization and international academic mobility has noticed the ability of individuals – especially highly-skilled personnel with marketable expertise – to move freely in the international labour market (Saxenian, 2002), and therefore the intensified worldwide competition for “brain gain”, i.e., governments’ “attempts, efforts, programs, and projects aimed to draw scientific workers to a given country” (Jalowiecki & Gorzelak, 2004, p. 299).
Published on Feb 1, 2008in Management Science 4.22
Z. Justin Ren7
Estimated H-index: 7
(BU: Boston University),
Yong-Pin Zhou11
Estimated H-index: 11
(UW: University of Washington)
In this paper, we study the contracting issues in an outsourcing supply chain consisting of a user company and a call center that does outsourcing work for the user company. We model the call center as a G/G/s queue with customer abandonment. Each call has a revenue potential, and we model the call center's service quality by the percentage of calls resolved (revenue realized). The call center makes two strategic decisions: how many agents to have and how much effort to exert to achieve service ...
Published on Jan 1, 2008
Guido Nassimbeni22
Estimated H-index: 22
Marco Sartor14
Estimated H-index: 14
Published on Jul 1, 2007in Industry and Innovation 3.16
Peter Maskell27
Estimated H-index: 27
(CBS: Copenhagen Business School),
Torben Pedersen45
Estimated H-index: 45
(CBS: Copenhagen Business School)
+ 1 AuthorsJens Dick-Nielsen6
Estimated H-index: 6
(CBS: Copenhagen Business School)
A corporation's offshore outsourcing may be seen as the result of a discrete, strategic decision taken in response to an increasing pressure from worldwide competition. However, empirical evidence of a representative cross-sector sample of international Danish firms indicates that offshore sourcing in low-cost countries is best described as a learning-by-doing process in which the offshore outsourcing of a corporation goes through a sequence of stages towards sourcing for innovation. Initially, ...
Published on May 1, 2007in World Development 3.90
Rafiq Dossani11
Estimated H-index: 11
(Stanford University),
Martin Kenney38
Estimated H-index: 38
(University of California, Berkeley)
Summary Services offshoring to India has grown dramatically in the last 10 years. It is linked to the earlier expansion of Indian software services exports, but has its own dynamic and workforce. Although domestic firms were early entrants, MNCs are central actors. Already, some work done in India resembles that done in developed countries. To explain the dynamism and complexity of offshoring, a taxonomy of market participants is presented. Offshoring by small entrepreneurial US firms is highlig...
Published on Mar 1, 2007in Journal of International Management 2.83
Ben L. Kedia22
Estimated H-index: 22
(U of M: University of Memphis),
Somnath Lahiri15
Estimated H-index: 15
(U of M: University of Memphis)
The business landscape is currently witnessing widespread migration of service functions from developed nations like the U.S to several foreign destinations as India, China, Ireland, Philippines etc. This happens as more and more firms engage in international outsourcing of services (IOS) to survive in today's highly competitive business environment. Despite increase in IOS, the nature of partnerships involved between clients and their overseas providers have not received adequate attention in t...
Published on Mar 1, 2007in Journal of International Management 2.83
Kraiwinee Bunyaratavej8
Estimated H-index: 8
(Wesley College),
Eugene D. Hahn15
Estimated H-index: 15
(SU: Salisbury University),
Jonathan P. Doh41
Estimated H-index: 41
(Villanova University)
Conventional wisdom suggests that firms engage in international offshoring of services primarily to reduce wage costs associated with a given service activity. Drawing on international business research on the costs of doing business abroad (CODBA), liability of foreignness (LOF), and institutional theory, we investigate the factors that contribute to the location choices for services offshoring activity, including wage differentials between the home and host countries. We find that consistent w...
Published on Mar 1, 2007in Journal of International Management 2.83
Nir Kshetri28
Estimated H-index: 28
(UNCG: University of North Carolina at Greensboro)
Micro and macro level impacts of offshore outsourcing are far from clear. Thus there are some well-founded rationales for and against offshore outsourcing as well as a number of misinformed and ill guided viewpoints. Using institutional theory as a lens, this paper analyzes the drivers of offshore business process and information technology outsourcing. We examine the mechanisms by which regulative rules, social rules, culturally supported habits and subconsciously accepted rules and customs inf...
Published on Mar 1, 2007
P.D. Orberg Jensen12
Estimated H-index: 12
(CBS: Copenhagen Business School),
Torben Pedersen45
Estimated H-index: 45
(CBS: Copenhagen Business School)
In this article, we explore the idea that offshoring of services and technical work should be regarded as a dynamic process that evolves over time. Firms gradually move from offshoring of simple, standardized activities towards offshoring of advanced activities when they accumulate experience with offshoring, and this type of offshoring comes with an entirely different set of characteristics compared to traditional, cost-seeking offshoring. Based on a unique survey among the total population of ...
Published on Mar 1, 2007in Journal of Operations Management 7.78
Tim R. Holcomb12
Estimated H-index: 12
(A&M: Texas A&M University),
Michael A. Hitt95
Estimated H-index: 95
(A&M: Texas A&M University)
Acknowledging efficiency motives, firms have increasingly turned to outsourcing in an effort to capture cost savings. Transaction cost theory (TCT) has been the dominant means of explaining outsourcing as an economizing approach whereby cost efficiencies are achieved by assigning transactions to different governance mechanisms. Recent research has used the resourcebased view (RBV) to examine the role of specialized capabilities as a potential source of value creation in relationships between fir...
Cited By357
Published on Mar 1, 2018in Journal of Business Research 4.03
Filippo Albertoni2
Estimated H-index: 2
(Polytechnic University of Milan),
Stefano Elia9
Estimated H-index: 9
(Polytechnic University of Milan),
Lucia Piscitello17
Estimated H-index: 17
(Polytechnic University of Milan)
Abstract Experience, meant as the repetition of the same action, is considered a predictor of the entry mode choice in foreign markets because it allows reducing uncertainty. However, repetition does not necessarily increase the expected performance, depending on the learning stemming from previous experiences. Focusing on offshoring decisions, namely the choice between captive and outsourcing entry mode, we distinguish between the inertial repetition of routines vs. the mindful repetition of pr...
Marina Papanastassiou16
Estimated H-index: 16
(Middlesex University),
Robert Pearce23
Estimated H-index: 23
(University of Reading),
Antonello Zanfei20
Estimated H-index: 20
(University of Urbino)
Internationalization of R&D and innovation by multinational enterprises (MNEs) has undergone a gradual and comprehensive change in perspective over the past 50 years. From sporadic works in the late 1950s and in the 1960s, it became a systematically analyzed topic in the 1970s, starting with pioneering reports and “foundation texts”. Our review unfolds the theoretical and empirical evolution of the literature from dyadic interpretations of centralization versus decentralization of R&D by MNEs to...
Published on Jun 1, 2018in Technological Forecasting and Social Change 3.81
Andrea Szalavetz4
Estimated H-index: 4
(MTA: Hungarian Academy of Sciences)
Abstract This paper investigates whether advanced manufacturing technologies (AMT) can modify the patterns of upgrading in manufacturing subsidiaries operating in FDI hosting factory economies. Does the digital transformation of local manufacturing engender the accumulation of local technological and R&D capabilities, or the beneficial impact of AMT remains confined to production capability? Analysis is based on primary data collected through in-depth interviews with a sample of high-flying manu...
Michael J. Maloni16
Estimated H-index: 16
(KSU: Kennesaw State University),
James Anthony Swaim3
Estimated H-index: 3
(KSU: Kennesaw State University)
+ 1 AuthorsJames Wermert (KSU: Kennesaw State University)
Abstract The current escalating global tariff war reflects public concern with offshoring associated with perceived loss of jobs and reduced national competitiveness. Accordingly, offshoring represents a crucial yet complex topic in business education as existing literature emphasizes how managers struggle to make objective offshoring decisions. With limited available pedagogical research however, educators are not fully aware of how students perceive offshoring and process offshoring decisions....
Published on May 1, 2019in Journal of World Business 5.79
Alessandro Ancarani13
Estimated H-index: 13
Carmela DiMauro11
Estimated H-index: 11
Francesco Mascali
Abstract An analysis of the competitive priorities that may lead backshoring companies to adopt new technologies is developed and tested using secondary data from 495 relocation initiatives to Europe. Findings suggest that backshoring is associated with the adoption of Industry 4.0 when the firm’s priorities are high quality and the reduction of costs tied to non-conformance. Backshoring initiatives prioritizing the reduction of direct costs or responsiveness are not significantly tied to Indust...
Published on Sep 1, 2018in Journal of World Business 5.79
Alfredo Valentino1
Estimated H-index: 1
(Libera Università Internazionale degli Studi Sociali Guido Carli),
Jan Schmitt1
Estimated H-index: 1
(WU: Vienna University of Economics and Business)
+ 1 AuthorsPhillip Christopher Nell13
Estimated H-index: 13
(WU: Vienna University of Economics and Business)
We investigate the effect of changing national institutions on relocations of intermediary HQs. Using a dataset of 154 cross-border relocations between the period from 2000 to 2015, we draw on the intermediary HQ's middle position within the MNC and investigate how a decrease in institutional quality in the HQ's host country and a change in institutional distance between different MNC units affect the relocation decision. Our findings advance the emergent literature on HQ relocations as well as ...
Published on Apr 25, 2019in European Journal of Information Systems 2.60
Robert F. Otondo13
Estimated H-index: 13
ABSTRACTBusiness analytics (BA) is an important organisational activity and research discipline. However, history has shown that information systems (IS)-related disciplines with promising futures do not always flourish as expected. The troubled history of one such discipline (i.e., operations research/management science, or OR/MS) serves as a cautionary tale for the BA community because it warns of the dangers of an unquestioning faith in the power of mathematical modelling and analysis. This c...