Journal of World Business, Forthcoming
43 Pages Posted: 12 Nov 2013
Date Written: November 11, 2013
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: 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