The Hidden Costs of Offshoring: The Impact of Complexity, Design Orientation, and Experience
Academy of Management Best Paper Proceedings, Forthcoming
10 Pages Posted: 27 Apr 2011
Date Written: April 26, 2011
This paper investigates hidden costs of offshoring, i.e. unexpected and often hard to measure costs resulting from the relocation of business tasks and activities outside the home country. Particularly, the paper shows that hidden costs can be explained by the degree of offshoring complexity. Firms’ organizational design orientation and offshoring experience negatively moderate the relationship between complexity and hidden costs.
Keywords: Offshoring, hidden costs, complexity theory, organizational design, global sourcing, organizational learning
JEL Classification: J23, J24, J44, J31, M51, M53, M54, L14, L21, L22, L24, L84, O14, R11, P45, P48, F59, F21, F22, F23
Suggested Citation: Suggested Citation