Structure offshoring and returns on offshoring

Yi-Ju Lo () and Tung Hung ()

Asia Pacific Journal of Management, 2015, vol. 32, issue 2, 443-479

Abstract: Focusing on global offshoring, this paper adapts the dynamic capabilities perspective to analyze how the structuring of offshoring disaggregation and geographical dispersion affects firm performance. While previous studies show that the returns on offshoring remain unclear, we present three findings that explain how the structuring of offshoring disaggregation and geographical dispersion influences firm performance. First, the larger the level of offshoring disaggregation, the better the firm performs. Second, the more geographical dispersion, the better the firm performs. Third, the effect of offshoring disaggregation on firm performance is greater when the firm structures and offshores its disaggregated value chain activities to dispersed locations. While economies of scale and learning may guide firms to offshore many discrete activities of the value chain, firms are able to gain the most returns from the structuring of offshoring disaggregation when they reconfigure lots of offshoring projects implemented in dispersed locations where environmental dynamism concurs. Copyright Springer Science+Business Media New York 2015

Keywords: Capabilities; Offshoring; Disaggregation; Dispersion; Strategy (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10490-014-9405-9 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:32:y:2015:i:2:p:443-479

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10490/PS2

DOI: 10.1007/s10490-014-9405-9

Access Statistics for this article

Asia Pacific Journal of Management is currently edited by Jane Lu

More articles in Asia Pacific Journal of Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().