Role of corporate-wide offshoring strategy on offshoring drivers, risks and performance

Published

Journal Article

In this study we investigate the role of corporate offshoring strategy on offshoring decisions and performance. Based on 876 offshoring projects from 226 companies obtained by means of surveys conducted in the USA and Europe, we examine the effect of offshoring strategy on factors influencing firms' views of offshoring, and the effect of offshoring strategy on offshoring performance. Separate analyses were conducted for US and European companies in order to explore any regional heterogeneity in offshoring. A comparative analysis between companies with and without an offshoring strategy reveals that when making offshoring decisions, the former consider a broader range of factors (drivers, risks and locations) as important compared to companies without an offshoring strategy, suggesting association between offshoring strategy and managerial attention. The results also indicate that the adoption of a corporate offshoring strategy has a significant positive effect on cost savings achieved from offshore implementations, and that innovation activities have a significant negative impact on cost savings, but only for European companies. © 2010 Taylor & Francis.

Full Text

Duke Authors

Cited Authors

  • Massini, S; Perm-Ajchariyawong, N; Lewin, AY

Published Date

  • August 27, 2010

Published In

Volume / Issue

  • 17 / 4

Start / End Page

  • 337 - 371

Electronic International Standard Serial Number (EISSN)

  • 1469-8390

International Standard Serial Number (ISSN)

  • 1366-2716

Digital Object Identifier (DOI)

  • 10.1080/13662716.2010.496242

Citation Source

  • Scopus