Improving Firm Performance Through Offshoring


Book Description

Locating one or more components of the value chain offshore is now a common element of the global strategy of many firms. Strategic motives include cost reduction, enhancing efficiency, leveraging of competence-based advantages, geographic expansion and speed to market. However, there is little academic research which has explored the relative impact of different strategic motives on offshoring performance. Using primary data on 201 Australian organisations, the empirical results of partial least squares (PLS) structural equation models suggest that implementing offshoring to achieve better efficiency and/or growth will have significant positive direct effects on firm performance and that the strategic motive has moderating effects on the relationship between the degree of offshoring and firm performance.




Does Outsourcing Really Improve Firm Performance? Empirical Evidence and Research Agenda


Book Description

The phenomenon of outsourcing has spawned a rich body of scholarly work in the last two decades. Yet answer to one important question has remained elusive: does outsourcing really improve firm performance? Addressing this question is important as firms across nations continue to embark on the practice of outsourcing to save operating costs and remain competitive. Scholars, practitioners and policy makers need to understand if and how outsourcing benefits the firm. However, no comprehensive review of empirical evidence has been published so far that can address this question. This study reviews 57 empirical research articles that investigated outsourcing-firm performance relationship in 47 peer-reviewed scholarly journals over a 20 year time-span (1996-2015). The articles differ widely in research scope, context, level of analysis, data source, time-span, industry sector, extent of outsourcing, and measure of performance. Findings suggest that outsourcing can produce positive, negative, mixed, moderated, or no significant impact on the firm. This study also provides useful directions for future research on outsourcing and firm performance.




Offshoring and Firm Performance


Book Description

The fundamental question of whether offshoring is value enhancing and, more specifically, whether Italian manufacturing firms that undertake offshoring benefit from higher productivity and profitability is explored. Using data from the tenth wave of the “Survey on Manufacturing Firms” conducted by Unicredit-Capitalia, it was found that, compared with domestic firms, firms relocating activities to a foreign country have different characteristics, and “better” firms might self-select into offshoring decision. To disentangle the effect of offshoring on firms' performances from the effect of firm characteristics, several variants of propensity score matching are used. A mild and insignificant positive effect of offshoring on profitability was found and also evidence of a statistically significant positive effect of offshoring on productivity.




The Offshoring Challenge


Book Description

The continuous search for efficiency gains and the goal of attaining a sustainable competitive advantage have steadily increased the volume of goods and services procured globally from third party vendors. In this context, named as “the next wave of globalization”, the offshoring phenomenon has stimulated research and political debates. With the rise of services offshoring, international value chain disaggregation for services has reached a formerly unknown scale. Also, it is increasingly complex transactions, requiring a higher degree of qualification, which are becoming subject to offshoring as well. The Offshoring Challenge: Strategic Design and Innovation for Tomorrow’s Organization features selected chapters by an international research community on the topic of offshoring. All potential business models from offshore outsourcing to third party providers are covered, from cooperative arrangements to internal organizational set-ups including captive offshore centers. Contributions have significant insights regarding: the increasing offshoring of knowledge-intensive services; the offshoring process; business models incorporating offshoring; the hidden costs of offshoring; and the administration of offshoring activities within firms The book is aimed at a broad audience of scholars, students and practitioners in the fields of strategy, international business and operations management.




Improving Business Performance Through Effective Managerial Training Initiatives


Book Description

The success of any corporate enterprise is reliant upon the effectiveness of its leadership. The methods used to prepare corporate leaders can have a significant impact on the success of the employees and the company. Improving Business Performance Through Effective Managerial Training Initiatives is a critical scholarly publication that explores leadership within corporations and how proper education can lead to positive outcomes within corporations. Featuring coverage on a wide range of topics, including managerial mindsets, learning-performance relationship, and strategic risk management, this book is geared toward academicians, researchers, students, and policy makers seeking relevant research on the importance of quality leadership education within corporations to promote success.




Global Outsourcing and Offshoring


Book Description

Companies are increasingly asking which of their value chain activities are best performed within their own company and which may be outsourced. In addition, they are also considering which pieces of their value chain may be better performed abroad. These interrelated decisions concerning outsourcing and offshoring have not only changed entire industries, they have also transformed the lives of people across the world. Hundreds of millions of jobs in emerging nations have been the direct result of outsourcing and offshoring decisions. At the same time, many people in the developed world have lost their jobs because a company has been able to find a cheaper alternative. Featuring contributions from scholars in eleven different countries, this book was the first to examine the theory and practice of outsourcing and offshoring simultaneously. It includes studies of a variety of different industries, including pharmaceuticals, automobiles, medical records, appliances, human resource management and telecommunications.







Offshoring and Firm Performance


Book Description

This paper examines the implications of offshoring by French manufacturing firms on their productivity and profitability. Offshoring is considered as endogenous and its impact is estimated on ex post measures of firm performance. The dataset used allows the distinction between two forms of offshoring: vertical foreign direct investment (FDI) and international outsourcing. It also gives us the possibility of distinguishing between offshoring to developed and developing countries. The results show, first, that offshoring has a stronger effect on profitability and, second, that the implications on performance are significant only in the case of international outsourcing to developing countries.




Outsourcing and Offshoring of Professional Services: Business Optimization in a Global Economy


Book Description

"This book discusses the considerations and implications surrounding the outsourcing and offshoring of professional services, such as software development computer-aided design, and healthcare, from multiple global perspectives. This book, offers industry professionals, policymakers, students, and educators with a balance between a broad overview and detailed analysis of offshore outsourcing, would make an invaluable addition to any reference library"--Provided by publisher.




Offshoring Opportunities


Book Description

offshoring opportunities is on target for today's marketplace "This book provides a much needed framework for offshoring that supports making sound business decisions in this area, and it can help guide the management of the resulting offshore relationship in an efficient and effective manner. John brings clarity and structure to this broad and complex subject." -Jim Maloney Chief Security Executive Corillian Corporation "An extremely well-written and researched book. Starts with a good background on the political and cultural implications of offshoring and proceeds to provide an invaluable guide to take the reader through the sourcing decision and how to make it." -Charly Paelinck Vice President of Application Development Harrah's Casino "We evaluate many different offshoring and site selection decisions each year for our clients, and I encourage every executive faced with these quandaries to consider the strategies discussed in this book. Offshoring Opportunities can be used as a practical review before investing millions, and it may just help you avoid several unintended consequences." -Jay Doherty Principal Mercer Human Resource Consulting