Understanding offshoring: A research framework based on disintegration, location and externalization advantages

Ben L. Kedia and Debmalya Mukherjee

Journal of World Business, 2009, vol. 44, issue 3, 250-261

Abstract: We present an analytical framework explaining offshoring in this paper. We address the question: why do firms offshore their business functions? Given the growing prevalence of offshoring as a dominant business practice in the world of global business, this question merits further research attention. We propose that firms embark on offshoring when they perceive three sets of interrelated advantages: disintegration advantages (D), location-specific resourcing advantages (L) and externalization advantages (E). Theories from multiple disciplines form the foundation of Disintegration-Location-Externalization (DLE) framework. Implications for managers, government policy makers and recommendations for future research are explored.

Keywords: Offshoring; Offshore; outsourcing; Externalization; Disintegration; advantages (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (128)

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