Offshoring Work: Business Hype or the Onset of Fundamental Transformation?

Lewin, Arie Y.; Peeters, Christian

doi:10.1016/j.lrp.2006.07.009

Cited by 290 publications

(276 citation statements)

References 17 publications

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“…To model the co-evolutionary processes recalled in the literature (Lahiri and Kedia 2011;Lewin et al 2009;Lewin and Volberda 2011;Manning et al 2010;Martínez-Noya and García-Canal 2011;Sidhu and Volberda 2011), the ''Consequences'' category is linked to the ''Antecedents,'' as companies learn from previous OS-related implementations and institutional forces are shaped by these path dependencies (Hutzschenreuter et al 2007). In relation to this, the existing research confirms that the acquisition of experience in OS ventures and the related development of resources and capabilities in the offshore context are important drivers behind the firm-level decision to initiate new OS implementations (Demirbag and Glaister 2010;Hätönen 2009;Hutzschenreuter et al 2011a, b;Lewin and Peeters 2006;Martínez-Noya et al 2012;Maskell et al 2007).…”

Section: Discussion and Avenues For Future Researchmentioning

confidence: 90%

“…Published studies on OS confirm that companies adopt a progressive learning-by-doing approach rooted in uncertainty reduction for their OS ventures, gradually augmenting their exposure to OS investments by relocating more complex functions. Hence, experiential knowledge in OS practices is considered a relevant driver of OS implementations (Demirbag and Glaister 2010;Hätönen 2009;Hutzschenreuter et al 2011a, b;Lewin and Peeters 2006;Martínez-Noya et al 2012;Maskell et al 2007).…”

Section: Firm Driversmentioning

confidence: 99%

“…The degree of disaggregation remains a fundamental choice in defining OS implementations (Contractor et al 2010;Hätönen and Eriksson 2009;Mudambi and Venzin 2010). Empirical results suggest that contractual arrangements with local providers often represent the way offshore basic service activities are initially organized (Lewin and Peeters 2006). As companies progressively move more complex services offshore, recent studies document that captive subsidiaries are used increasingly for OS operations in order to reduce the likelihood of potential knowledge leaks and maintain greater control over strategic activities (Hutzschenreuter et al 2011a;Lewin et al 2009;Mudambi and Venzin 2010;Nieto and Rodríguez 2011).…”

Section: Governance Choice and Coordination And Control Mechanismsmentioning

confidence: 99%

“…IB scholars have progressively investigated OS-related topics, widely reputed to be at the frontier of IB thinking (Doh et al 2009;Luo et al 2012;Manning et al 2008;Parkhe 2007). Published studies have highlighted that OS represents a new type of internationalization, which interests a variety of service activities (Javalgi et al 2009;Lewin et al 2009;Lewin and Peeters 2006;Nieto and Rodríguez 2011) and implies considerable repercussions at the individual, firm, and country levels (Bunyaratavej et al 2008;Contractor et al 2010;Kumar et al 2009;Liesch et al 2012;Manning et al 2010). Scholars have also suggested that OS generates important challenges to established IB theories, raising a host of stimulating questions and offering a fertile setting for research Doh 2005;Doh et al 2009;Kenney et al 2009).…”

Section: Introductionmentioning

confidence: 99%

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Offshoring of Services: A Review of the Literature and Organizing Framework

Pisani

Ricart

2015

Manag Int Rev

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Offshoring of services (OS), commonly defined as the international relocation of service activities that companies previously performed in their home country, has emerged as a relevant phenomenon in international business (IB). Over the past two decades, OS has grown rapidly in the global economy and it has increasingly attracted IB scholars' attention. In this study, we systematically review the literature to map and assess the body of IB research focused on the OS phenomenon. To achieve our goal, we identify and analyze a total of 79 studies that appeared from 1990 to 2014 in a select group of 14 journals that are widely considered leading publishers of IB research. This review seeks to make a threefold contribution to the IB discipline. First, it provides an in-depth analysis of the OS literature through a synthesis of the theoretical perspectives adopted and an assessment of the empirical findings obtained. Second, it offers an organizing framework that contributes to a more nuanced understanding of the OS phenomenon. Third, it identifies emerging topics on the OS frontier and suggests potential avenues for future research.

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Section: Discussion and Avenues For Future Researchmentioning

confidence: 90%

Section: Firm Driversmentioning

confidence: 99%

Section: Governance Choice and Coordination And Control Mechanismsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Offshoring of Services: A Review of the Literature and Organizing Framework

Pisani

Ricart

2015

Manag Int Rev

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“…These include the electronic nature of the provision of services, the ability to readily relocate services provision around the world given that appropriate information/communication linkages are in place, and the particular relevance of language commonalities and culture. Yet perhaps the most regularly discussed difference between services and manufacturing offshoring is the importance of skill sets and the centrality of highly educated and commensurately skilled labor (Dossani and Kenney 2003, Nicholson and Sahay 2004, Pfannenstein and Tsai 2004, Stack and Downing 2005, Davis et al 2006, Lewin and Peeters 2006, Jain et al 2008, Kumbakara 2008, Stringfellow et al 2008, Srivastava et al 2008. Kotabe and Murray (2004) report that much of the offshore outsourcing literature has explained increased levels of outsourcing activities by using a core competency concept, that is, firms seek to shed their non-core functions through offshoring -captive or contracted (see also Pfannenstein and Tsai 2004).…”

Section: Task Skill Level and The Temporal Evolution Of Offshoringmentioning

confidence: 99%

Offshoring of Information-Based Services: Structural Breaks in Industry Life Cycles

Hahn

Bunyaratavej

2011

Service Science

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he emergence of widespread offshoring of information-based services is arguably one of the more transformative business phenomena of the last ten years. A growing body of research has examined the firm-level drivers and location factors (i.e., the "whys" and "wheres") of services offshoring. However, little empirical research has examined the temporal dynamics (or "whens") of services offshoring. Adopting industry life cycle theory as a framework and a Bayesian methodological approach, we explore two key research questions: (i) when do different categories of offshoring services provision change from being emergent sectors to more mature ones relative to one another? and (ii) how do different types of offshoring activity differentially progress through this sequence? Employing a database of 1,420 offshore services FDI projects, we find that the relative skill level and the information sensitivity of the specific service category are associated with the temporal sequence of industry life cycle progression such that activities with decreased information sensitivity are offshored earlier than those with greater information sensitivity. We draw implications for our findings in terms of future waves of service offshoring.

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The impact of offshoring on knowledge‐intensive services: A study of activities in service production processes

Brandl

2019

Global Strategy Journal

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Research summary: In order to identify the impact of offshoring on knowledge‐intensive services (KIS), the activities related to the transfer and co‐creation of knowledge in the service production process are studied in this paper. The concepts of activity systems and activity structures from practice theory are used to analyze these activities. A qualitative case study of multiple offshored KIS shows that offshoring changes activity systems and structures within the production process. Activities related to the transfer of knowledge are reduced while the co‐creation of knowledge remains evident in the process. As a result, KIS become more modularized and less customized, evidencing changed KIS characteristics. The paper adds to service offshoring and international service management literature and extends practice theory. Managerial summary: This paper studies how knowledge‐intensive services (KIS) are impacted by a geographic relocation of the services across country borders. The relocation, termed offshoring, implies that the service client and provider are geographically separated and need to interact on a distance in order to produce the service. As the service production is dependent on the transfer of existing knowledge and co‐creation of new knowledge by clients and service providers, the geographic distance is challenging KIS production processes. An empirical analysis finds that the geographic distance is changing the way the services are produced. The transfer and co‐creation of knowledge are reduced leading to fewer interactions between clients and service providers, mainly knowledge coproduction remains important. These changes lead to altered KIS production processes and service characteristics.

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Offshoring Work: Business Hype or the Onset of Fundamental Transformation?

Cited by 290 publications

References 17 publications

Offshoring of Services: A Review of the Literature and Organizing Framework

Offshoring of Services: A Review of the Literature and Organizing Framework

Offshoring of Information-Based Services: Structural Breaks in Industry Life Cycles

The impact of offshoring on knowledge‐intensive services: A study of activities in service production processes

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