Exploring Determinants of International Sourcing: Captive Offshoring vs. Offshore Outsourcing

Anže Burger Andreja Jakliè Jelena Cirjakoviè
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Anže Burger Andreja Jakliè Jelena Cirjakoviè: Centre of International Relations, Faculty of Social Sciences, University of Ljubljana, Ljubljana, Slovenia Centre of International Relations, Faculty of Social Sciences, University of Ljubljana, Ljubljana, Slovenia Statistical Office of the Republic of Slovenia, Ljubljana, Slovenia
Authors registered in the RePEc Author Service: Andreja Jaklič ()

Zagreb International Review of Economics and Business, 2010, vol. 13, issue Special Conference Issue, 45-66

Abstract: The growing significance of international sourcing has been well documented and has spurred the emergence of extensive body of theoretical literature analyzing the organization of firms’ activities on a global scale. Recent literature on integration strategies and global production sharing combines elements from international trade and industrial organization with the theory of the firm in order to explain endogenously the variety of organizational forms. Using the propositions of transaction costs and internalization, firm-specific advantages and location advantages, we examine the role of different factors as a determinant of the fragmentation strategy of Slovene firms. We evaluate how firm-level, industry-level and country-level characteristics influence the choice of sourcing mode (domestic sourcing, offshore outsourcing and captive offshoring) on recently conducted Eurostat survey.

Date: 2010
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