Strategy

Selecting The Governance Mode When Offshoring Knowledge-Intensive Activities

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The offshoring phenomenon has evolved in recent years, and can be understood from a threefold perspective: first, the evolution in the type of activity being offshored; second, the learning curve involving both the companies implementing offshoring and service providers; and third, the reasons for offshoring. This study proposes an empirical framework that will allow us to explore the interaction between the type of activity (specifically knowledge-intensive) and the drivers of the decision to select the most appropriate governance mode. Specifically, our results show that market-seeking drivers become the primary determinants prompting firms to offshore knowledge-intensive activities through a captive center. In contrast, the motivation to reduce costs moderates the decision to offshore knowledge-intensive activities by nurturing a preference for offshore outsourcing. The empirical evidence is supported by multi-country data from the Offshoring Research Network.
Bibliographic citation: Paz-Aparicio, C.; Muñoz-Bullón, Fernando; Sanchez-Bueno, Maria J.; Ricart, Joan Enric, "Selecting The Governance Mode When Offshoring Knowledge-Intensive Activities", Journal of Purchasing and Supply Management, Vol. 24, No. 4, 2018, pp 275 - 287

Reference: 10.1016/j.pursup.2018.10.001 (DOI)
Date: 10/2018
Author(s): Paz-Aparicio, C.; Muñoz-Bullón, Fernando; Sanchez-Bueno, Maria J.; Ricart, Joan Enric
Document type: Article in Journal (refereed)
Editor(s): Cátedra Carl Schroeder de Dirección Estratégica
Languages: English