Icons / Logo / Facebook Created with Sketch. Icons / Logo / Google Created with Sketch. Icons / Logo / ORCID Created with Sketch. Branding/Logomark minus Citation Combined Shape Icon/Bookmark-empty Icon/Copy Icon/Collection Icon/Close Copy 7 no author result Created with Sketch. Icon/Back Created with Sketch. Match!

Offshoring as a survival strategy: evidence from manufacturing firms in Belgium

Published on Dec 1, 2008in Journal of International Business Studies 7.72
· DOI :10.1057/palgrave.jibs.8400403
Kristien Coucke1
Estimated H-index: 1
(Catholic University of Leuven),
Leo Sleuwaegen22
Estimated H-index: 22
(Katholieke Universiteit Leuven)
Cite
Abstract
This paper analyzes the impact of globalization on the exit behavior of manufacturing firms in Belgium. Imports from low-wage countries are found to exert a strong competitive effect, which raises the likelihood of exit of firms in industries where intra-industry trade is relatively low. Similar to import competition, growing penetration by multinational firms in the industry has an equally strong competitive impact on the likelihood of exit of domestic firms. However, Belgian firms that offshore activities to non-European Union countries are able to substantially improve their chances of survival. This also holds for subsidiaries of multinational enterprises operating in Belgium. Unlike domestic firms, the likelihood of exit of subsidiaries of multinational enterprises is found to be less sensitive to domestic market conditions in the host country. Journal of International Business Studies (2008) 39, 1261–1277. doi:10.1057/palgrave.jibs.8400403
  • References (66)
  • Citations (71)
Cite
References66
Newest
Published on Jun 1, 2009
Louise Curran10
Estimated H-index: 10
(Toulouse Business School),
Soledad Zignago15
Estimated H-index: 15
(Banque de France)
After a long period of domination by the industrialised countries of the North, international trade is today driven by the dynamism of developing countries. This work seeks to analyse how the EU is performing in the light of this emerging competitive threat, by comparing the EU’s export performance on the world market with that of its key competitors between 1995 and 2004. The figures show that the EU has performed particularly well in the more upmarket, expensive and high tech levels of the mar...
Published on Feb 1, 2009in Journal of Regional Science 1.94
Dirk Czarnitzki38
Estimated H-index: 38
(Katholieke Universiteit Leuven),
Hanna Hottenrott19
Estimated H-index: 19
(Katholieke Universiteit Leuven)
This study investigates how local milieus foster innovation success in firms. We complement the common practice of linking firm performance indicators to regional characteristics with survey evidence on the perceived importance of locational factors. While the former approach assumes that location characteristics affect all firms in the same way, the survey allows us to model how firms judge the attractiveness of locations using a heterogeneous set of criteria. It turns out that the availability...
Published on Jan 1, 2009in International Review of Economics & Finance 1.43
Roberto Alvarez E.17
Estimated H-index: 17
(The RiverBank),
Holger Görg51
Estimated H-index: 51
(IfW: Kiel Institute for the World Economy)
This paper investigates three main questions: are affiliates of foreign multinationals more likely to exit than domestic firms? Does the exit probability of multinationals depend on its export orientation?, and Does the presence of multinationals affect the survival of other firms in the economy? Our results show that foreign plants are more likely to exit the economy, controlling for other firm and industry characteristics, only during the late 1990s, a period when the Chilean economy experienc...
Harry P. Bowen17
Estimated H-index: 17
(Queens University of Charlotte),
Leo Sleuwaegen22
Estimated H-index: 22
(CUA: The Catholic University of America)
A perception of declining EU competitiveness has intensified calls for structural reforms within the EU. This paper examines recent evidence on changes in relative EU competitiveness and considers the observed changes in relation to the evolving competitive environment facing EU firms. Our analysis suggests that recent declines in EU competitiveness reflect changes (or lack thereof) within the EU in response to an evolutionary “Third Step” in the process of EU integration: global market integrat...
Published on Sep 1, 2007in Journal of International Economics 2.22
Jan De Loecker15
Estimated H-index: 15
(NYU: New York University)
I use matched sampling techniques to analyze whether firms that start exporting become more productive. To this end, I use micro data of Slovenian manufacturing firms operating between the period 1994-2000. I estimate total factor productivity using the Olley-Pakes correction for sample selection and for potential endogeneity of the input factors. In most sectors I find evidence supporting the learning by exporting hypothesis controlling for the self-selection process explicitly. Exporting firms...
Published on May 1, 2007in The Review of Economics and Statistics 3.64
Andrew B. Bernard42
Estimated H-index: 42
(Dartmouth College),
J. Bradford Jensen30
Estimated H-index: 30
Plant shutdowns shape industry productivity, the dynamics of employment, and industrial restructuring. Plant closures account for more than half of gross job destruction in US manufacturing. This paper examines the effects of firm structure on US manufacturing plant closures. Plants belonging to multi-plant firms and those owned by US multinationals are less likely to exit. However, the superior survival chances are due to the characteristics of the plants rather than the nature of the firms. Co...
Published on Feb 1, 2007in Review of Development Economics 0.72
Fukunari Kimura21
Estimated H-index: 21
(Keio: Keio University),
Kozo Kiyota15
Estimated H-index: 15
(Yokohama National University)
This paper utilizes micro-panel data for firms located in Japan and examines differences in corporate performance between foreign-owned and domestically-owned firms in the 1990s. We find that foreign-owned firms not only reflect superior static characteristics, but also achieve faster growth. Moreover, foreign investors appear to invest in firms that may not be immediately profitable, but those that are potentially the most profitable in the future. There is also no evidence that foreign investo...
Published on Sep 1, 2006in Scottish Journal of Political Economy 0.45
Leo Sleuwaegen22
Estimated H-index: 22
(Catholic University of Leuven),
Enrico Pennings19
Estimated H-index: 19
(EUR: Erasmus University Rotterdam)
The flexible relocation of capacity across countries by multinational enterprises has become an important source of concern. Using a unique sample of relocating firms in Belgium, we find that wages and market potential of host regions are important determinants for the location choice. Considering firm characteristics, we show that large firms have a higher propensity to relocate to remote countries. Public aid only plays a decisive role in the investment decision for relocations to adjacent cou...
Published on Jul 1, 2006in Journal of Monetary Economics 2.44
Andrew B. Bernard42
Estimated H-index: 42
(Dartmouth College),
J. Bradford Jensen30
Estimated H-index: 30
,
Peter K. Schott32
Estimated H-index: 32
(Yale University)
This paper examines the response of U.S. manufacturing industries and plants to changes in trade costs using a unique new dataset on industry-level tariff and transportation rates. Our results lend support to recent heterogeneous-firm models of international trade that predict a reallocation of economic activity towards high-productivity firms as trade costs fall. We find that industries experiencing relatively large declines in trade costs exhibit relatively strong productivity growth. We also ...
Published on Mar 1, 2006in Asian Economic Journal 0.20
Rene Belderbos30
Estimated H-index: 30
(Katholieke Universiteit Leuven),
Jianglei Zou5
Estimated H-index: 5
(Katholieke Universiteit Leuven)
Although foreign divestment and international relocation by multinational firms carry important economic implications for the industrialization of East Asian countries, there has been little empirical research on these issues. In this paper we analyze the magnitude and pattern of foreign divestment and relocation by Japanese electronics firms in nine East Asian countries during 1995-2003. The average annual divestment rate of electronics manufacturing affiliates is 3 percent, but divestment patt...
Cited By71
Newest
Published on May 1, 2019in International Business Review 3.64
Jonathan Bauweraerts4
Estimated H-index: 4
,
Salvatore Sciascia15
Estimated H-index: 15
+ 1 AuthorsPietro Mazzola (New York City Law Department)
Abstract Adopting the socioemotional wealth perspective, we argue that the presence of a family CEO in family SMEs negatively affects export scope, but that such negative effect is mitigated by board service. We develop and test a model that considers the synergistic combination of family management and another important aspect of family governance in the context of family firm internationalization: the service behavior of the board of directors. The empirical evidence from a sample of 248 Belgi...
Italo Colantone7
Estimated H-index: 7
(Bocconi University),
Alessia Matano5
Estimated H-index: 5
(University of Barcelona),
Paolo Naticchioni11
Estimated H-index: 11
(Roma Tre University)
Published on Feb 1, 2019in Journal of Purchasing and Supply Management 3.09
Bernhard Dachs11
Estimated H-index: 11
(Austrian Institute of Technology),
Steffen Kinkel9
Estimated H-index: 9
+ 1 AuthorsIztok Palcic6
Estimated H-index: 6
(University of Maribor)
Abstract Backshoring – the movement of manufacturing activities from locations abroad back to the home country – has gained some attention in policy discussions and in academic research in recent years. This paper presents empirical evidence on backshoring from a large sample of European manufacturing firms. The data indicate that backshoring is still uncommon among European firms. Around 4% of all firms in our sample have moved production back to the home country between 2013 and mid-2015. The ...
Published on Feb 8, 2019in Sustainability 2.59
A James Gaskin Excel Macro Analysis is performed to determine the reliability of our scales, and a 3-way parallel mediation using the Andrew Hayes’ PROCESS model is applied to test the formulated hypotheses. Results show that hedging has a direct effect on firms’ survival; firms’ size and age individually do not strongly influence these effects, but a combination of the two does. We, therefore, concluded that while the hedging-survival effect exists on all forms of hedging, the practice of hedgi...
Published on Nov 1, 2018in Journal of World Business 5.79
Ramzi Fathallah1
Estimated H-index: 1
(AUB: American University of Beirut),
Oana Branzei13
Estimated H-index: 13
(UWO: University of Western Ontario),
Jean-Louis Schaan6
Estimated H-index: 6
(UWO: University of Western Ontario)
Abstract Combining historical and longitudinal comparative case methodologies for nine nascent EMNCs over 12 years, we explain how their evolving relationship to a hyper turbulent home country motivates largely unplanned yet aggressive internationalization. Firms progressively mitigate the damaging effects of their rapidly deteriorating home context by pursuing a sequence of three institutional arbitrage modes. They first arbitrage rents to stabilize their rocky domestic operations, then arbitra...
Published on Sep 1, 2018in Journal of Economic Geography 3.36
Giulio Buciuni2
Estimated H-index: 2
,
Giulio Buciuni1
Estimated H-index: 1
,
Gary P. Pisano40
Estimated H-index: 40
(Harvard University)
Over the past two decades, the greater prevalence of global supply chains has had contrasting effects on Western manufacturing clusters. While some of them dwindled, others proved resilient. Contributing to the recent literature on co-located clusters and clusters' linkages, we focus on the impact of lead firms’ strategies on the competitiveness of a pair of ‘twin’ clusters located in Northeast Italy. Our findings suggest that production remains ‘sticky’ when leading firms pursue ‘process-embedd...
Published on Jul 27, 2018in Global Strategy Journal 2.73
Yannick Thams3
Estimated H-index: 3
(Suffolk University),
Aya S. Chacar8
Estimated H-index: 8
(College of Business Administration),
Margarethe F. Wiersema24
Estimated H-index: 24
(UCI: University of California, Irvine)
Published on Jul 1, 2018in Journal of International Money and Finance 1.78
Rui Li (University of Massachusetts Boston), Chi Wan (University of Massachusetts Boston), Mengying Wang (University of Massachusetts Boston)
This paper examines the joint effect of imports and inward foreign direct investment (iFDI), the two primary entry forms of foreign companies to the U.S. product market, on domestic firms’ capital investment decisions. We develop novel firm-level measures to gauge the impact of imports and iFDI. We show that increased import competition significantly reduces U.S. firms’ investment; in contrast, the effect of iFDI on investment is largely nonsignificant. Further analysis suggests that the negativ...
Published on May 14, 2018in International Marketing Review 3.45
Melanie P. Lorenz4
Estimated H-index: 4
(UT: University of Toledo),
Jack Clampit4
Estimated H-index: 4
(UA: University of Alabama),
Jase R. Ramsey8
Estimated H-index: 8
(SLU: Saint Louis University)
Purpose A dilemma exists in that many view offshoring as a tradeoff between cost efficiency and innovation. The purpose of this paper is to reconcile this dilemma by showing how and why offshoring to institutionally distant host countries may result in innovation. The authors introduce an institutional lens in order to understand how offshoring to institutionally distant locales affects innovation outcomes of multinational enterprises. This lens is aimed to provide an analytical tool that is les...
Published on Mar 2, 2018in Global Strategy Journal 2.73
Frank Gl Jiang1
Estimated H-index: 1
(Carleton University),
Guy L. F. Holburn16
Estimated H-index: 16
(UWO: University of Western Ontario),
Paul W. Beamish59
Estimated H-index: 59
(Ulster University)