Purpose – The purpose of this paper is to advance the understanding of factors that affect offshoring performance results. To do so, this paper focuses on the access to location-specific advantages, rather than solely on the properties of the offshoring company, its strategy or environment. Assuming that different levels of synergy may exist between particular offshoring strategic decisions (choosing offshore outsourcing or captive offshoring and the type of function) and different offshoring advantages, this work advocates that the actual fact of realization of certain offshoring advantages (getting or not getting access to them) is a more reliable predictor of offshoring success. Design/methodology/approach – A set of hypotheses derived from the extant literature is tested on the data from a quantitative survey of 1,143 Scandinavian firms. Findings – The paper demonstrates that different governance modes and types of offshored function indeed provide different levels of access to different types of location-specific offshoring advantages. This difference may help to explain the ambiguity of offshoring initiatives performance results. Research limitations/implications – Limitations of the work include using only the offshoring strategy elements and only their limited variety as factors potentially influencing access to offshoring advantages. Also, the findings are limited to Scandinavian companies. Originality/value – The paper introduces a new concept of access, which can help to more reliably predict performance outcomes of offshoring initiatives. Recommendations are also provided to practitioners dealing with offshoring initiatives.
This paper advances our understanding of how technology upgrading in the Chinese wind turbine industry is linked to internationalisation of Danish component suppliers. In order to grasp the interlinkages and implications hereof, the paper combines perspectives of global value chains (GVC), national innovation systems (NIS) and firm level capabilities. The paper employs a qualitative methodology, drawing on explorative case studies of component suppliers and their links to lead firms in the wind turbine industry. The findings of the paper highlight the new pattern of upgrading by upstream linkages, i.e. linking up with global suppliers in the wind turbine global value chain, and the new role of component suppliers as technology transmitters across national innovation systems into emerging markets. Conceptually, the paper contributes to understanding how technological catching up in value chains links to the intersection between national innovation systems, a process driven by global value chain dynamics.
Purpose – This paper focuses on the management of the learning curve in overseas capacity expansions. The purpose of this paper is to unravel the direct as well as indirect influences on the learning curve and to advance the understanding of how these affect its management. Design/methodology/approach – The paper builds on the offshoring, capacity expansion and learning curve literature. The existing scholarship often lacks detailed insights into the factors surrounding the globalisation of production, and how constructing and operationalising new capacities overseas should be implemented. The paper employs qualitative methodology and draws on a longitudinal, factory-level analysis of an in-depth case study of a Danish wind turbine manufacturer. Findings – This study goes beyond a simplistic treatment of the lead time and learning required to establish a new capacity. The authors examined the dimensions of the learning process involved in a capacity expansion project and identified the direct and indirect labour influences on the production learning curve. On this basis, the study proposes solutions to managing learning curves in overseas capacity expansions. Furthermore, the paper concludes with measures that have the potential to significantly reduce the non-value-added time when establishing new capacities overseas. Originality/value – The paper uses a longitudinal in-depth case study of a Danish wind turbine manufacturer and goes beyond a simplistic treatment of the lead time and learning required to establish a new capacity.
Purpose -The purpose of this paper is to unravel and assess current nearshoring practices and their outlook in the Baltic region. Design/methodology/approach -The authors draw on the offshoring and outsourcing literature and use mixed methods of enquiry, including case studies, survey techniques and secondary statistical data. Part of the empirical base of the study is an examination of three Scandinavian firms that offshore their operations to vendors in the Baltics. To provide a more complete view of the practices and processes of offshoring in the region, the authors complement the case studies of Swedish and Danish manufacturers with a survey of 55 Lithuanian vendors and other statistical data. Findings -The paper outlines the main drivers of nearshoring for Scandinavian manufacturing firms. Based on in-depth insights into nearshoring initiatives, the authors elucidate how the initiatives evolved and what factors affected them. The survey results reveal the perspective of Lithuanian vendors regarding their relationships with Scandinavian partners. These findings are used in assessing the future prospects of nearshoring in the Baltic region. Practical implications -The study relates the key attributes of Scandinavian companies' nearshoring practices to the perspectives of Lithuanian vendors. While the authors' discussion concentrates on how companies organise their operations in an increasingly global context, it also points to broader policymaking implications for the Baltic region. Originality/value -The paper addresses the topic of nearshoring, which has thus far received limited attention in the management literature. By incorporating both the perspectives of offshoring and vendor companies, the paper provides a more complete view on the phenomenon and presents the main dilemmas underpinning it.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.