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Mitigate, Tolerate or Relocate? Offshoring Challenges, Strategic Imperatives and Resource Constraints

Journal of World Business, Forthcoming

43 Pages Posted: 12 Nov 2013  

Stephan Manning

University of Massachusetts at Boston - College of Management

Date Written: November 11, 2013

Abstract

This paper examines key firm-level factors influencing initial strategic responses to offshoring implementation challenges. Comparative case findings indicate that firms are likely to try to mitigate challenges if they perceive to have control over their cause; if strategic objectives are diverse; and if firms have abundant resources available. By comparison, firms tolerate challenges if cost is a strategic imperative, or if resource endowments are limited. Firms relocate operations temporarily or permanently in particular if challenges are externally caused, whereby temporary relocation requires investments into flexible global infrastructures. Findings reveal critical contingencies of capability development and learning in offshoring and beyond.

Keywords: global sourcing, outsourcing, implementation, risks, learning, experience, capabilities

JEL Classification: J23, J24, J44, J31, M51, M53, M54, L14, L21, L22, L24, L84, O14, R11, P45, P48, F59, F21, F22, F23

Suggested Citation

Manning, Stephan, Mitigate, Tolerate or Relocate? Offshoring Challenges, Strategic Imperatives and Resource Constraints (November 11, 2013). Journal of World Business, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2353131

Stephan Manning (Contact Author)

University of Massachusetts at Boston - College of Management ( email )

100 Morrissey Blvd
Boston, MA 02125
United States

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