Productivity Gains from Offshoring

Butter, Frank Den; Pattipeilohy, Christiaan

doi:10.2139/ssrn.1032125

Cited by 5 publications

(5 citation statements)

References 23 publications

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“…If we assume that this parameter varies by relocation mode (both in a spatial and organizational context), this affects the threshold value for profit maximization as a function of firm size. Typically, higher returns to scale (or scope) are assumed to hold for international compared to domestic relocations (e.g., den Butter and Pattipeilohy 2007 ). Such differences may reflect external increasing returns to scale through foreign knowledge sourcing or be associated with leveraging core competencies and fostering specialization through offshoring (Mihalache et al, 2012 , Steinberg et al, 2017 ).…”

Section: Definitions and Theoretical Considerationsmentioning

confidence: 99%

Relocation, innovation, and the difference that firm size makes: Insights for global sourcing strategies of SMEs

Mitze

Kreutzer²

2023

J Int Entrep

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Although small and medium-sized enterprises increasingly utilize global sourcing strategies which involve the spatial relocation of their business activities, little is known about the effects of these strategies on firm performance—particularly firm innovativeness. Here, we analyze if alternative relocation strategies, specifically domestic and international relocations, differ in their performance effects on firm innovativeness by firm size and organizational configuration. Our econometric approach uses detailed micro data for German firms, and the empirical findings indicate that both product and process innovation rates negatively respond to international but not domestic relocations. Effects are more pronounced for smaller firms and are mainly associated with outsourcing arrangements. Only for large firms we observe a positive association between relocation and firm innovativeness. This indicates that short- to mid-run organizational costs associated with relocation activities can generally be better covered by larger firms. Supplementary Information The online version contains supplementary material available at 10.1007/s10843-023-00326-5.

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Section: Definitions and Theoretical Considerationsmentioning

confidence: 99%

Relocation, innovation, and the difference that firm size makes: Insights for global sourcing strategies of SMEs

Mitze

Kreutzer²

2023

J Int Entrep

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“…They found no negative impacts of services offshoring, but firms relying on services offshoring experience faster employment growth. Den Butter and Pattipeilohy (2007) analysed Dutch data for the period 1972-2001, and found a positive and larger R&D effect of offshoring (and offshore outsourcing) on total factor productivity in the country. Bournakis et al (2011) found different impacts in the case of material and of services offshoring in the US, Japan and Europe: material offshoring (and offshore outsourcing) leads to a rise in the share of industry in GDP, unlike services offshoring (and offshore outsourcing).…”

Section: The Productivity Impactmentioning

confidence: 99%

Assessment of the Potential and Prospects for the Development of High-Technology and Medium-High-Technology Types of Industrial Activities in Ukraine

Mytsenko

2022

Management of Economy: Theory and Practice. Chumachenko’s Annals

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The main ideas about modern technological innovations, the Fourth Industrial Revolution, global value chains, and the role of high-technology and medium-high-technology types of industrial activities in the process of technological transformation of the world economy are highlighted. An assessment of the potential and prospects for development of high-technology and medium-high-technology types of industrial activities in Ukraine are completed from the standpoint of the relationship between investment activity and the level of production as a prerequisite for increasing the technological level of the national economy and its integration into global value chains on a more profitable basis in modern and post-war conditions. Based on the analysis of the level of expenses that enterprises invest in the modernization and acquisition of tangible and intangible assets, it is concluded that the production and technological potential of high- and medium-high-tech branches of the industry in the pre-war period was increased, and it was found that their priority is capital investment in machines and equipment, and capital investments into intangible assets are financed according to the residual principle. It is determined that the manufacturers of pharmaceutical products and preparations, motor vehicles, trailers and semi-trailers, and other vehicles have the highest production productivity, which indicates the competitiveness of the products manufactured by them and their importance for the national industrial sector. According to the results of the correlation and regression analysis, a strong dependence between the volumes of sold products and capital investments in the pharmaceutical industry and the electrical equipment manufacturing industry and a weak dependence in the chemical industry have been proven, which requires further scientific research t

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“…Los trabajos que analizan el impacto de las estrategias de offshoring en los resultados de la empresa son relativamente escasos y las medidas de resultados que se han empleado para su análisis muy diversas (Jiang et al, 2006). La mayor parte de la literatura se ha centrado en el análisis de la productividad y la rentabilidad como principales efectos derivados del uso de estrategias de outsourcing, tanto nacional como internacional (Butter y Pattipeilohy, 2007;Jabbour, 2007;Tomiura, 2007;Houseman, 2007;Olsen, 2006;entre otros). Sin embargo, también el efecto que el uso de estas estrategias provoca sobre el empleo es otra de las cuestiones que sigue generando inquietudes, especialmente en el ámbito económico, y así lo evidencian algunas investigaciones recientes (OCDE, 2007).…”

Section: Principales Efectos Derivados Del Offshoring: Productividad ...unclassified

Productivity, Profitability and Employment: Exploring the Different Effects of the Offshoring Mode

Linares-Navarro

Villar

Barber

2014

GCG

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La implementación de distintas modalidades de offshoring viene siendo una práctica habitual en las empresas multinacionales europeas, sin embargo, poco se conoce sobre los efectos que el uso de estas estrategias ejerce en los resultados, uno de los aspectos de mayor interés para las empresas. En este sentido, a partir de una muestra de 156 empresas multinacionales europeas del sector manufacturero, se analizan las diferencias derivadas de la elección del modo de offshoring en la productividad y la rentabilidad de las empresas. Adicionalmente, el trabajo examina la influencia que el uso de esta estrategia ejerce sobre el empleo, uno de los efectos que más inquietud despierta en el entorno económico-social. Los resultados obtenidos demuestran que ningún tipo de offshoring es mejor que otro en términos de productividad y rentabilidad empresarial, y que la amplia creencia que existe sobre la destrucción de empleo provocada por el uso de estas estrategias no es del todo clara. autoresA implementação de diferentes modalidades de offshoring vem sendo uma prática habitual nas empresas multinacionais europeias, no entanto, pouco se conhece sobre os efeitos que a utilização destas estratégias exerce nos resultados, um dos aspectos de maior interesse para as empresas. Neste sentido, a partir de uma amostra de 156 empresas multinacionais europeias do sector industrial, são analisadas as diferenças derivadas da escolha do modo de offshoring na produtividade e na rentabilidade das empresas. Adicionalmente, o trabalho examina a influência que a utilização desta estratégia exerce sobre o emprego, um dos efeitos que mais inquietação desperta no ambiente sócio-económico. Os resultados obtidos demonstram que nenhum tipo de offshoring é melhor que outro em termos de produtividade e rentabilidade empresarial, e que a crença generalizada que existe sobre a destruição do emprego causada pela utilização destas estratégias não é de todo evidente. ÁREA: 2 TIPO: Aplicación DOI 10.3232/ GCG.2009. V3.N3.07 * Los autores agradecen la financiación recibida por el Ministerio de Ciencia y Tecnología de España (Proyecto SEJ2006-13889).

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Productivity Gains from Offshoring

Cited by 5 publications

References 23 publications

Relocation, innovation, and the difference that firm size makes: Insights for global sourcing strategies of SMEs

Relocation, innovation, and the difference that firm size makes: Insights for global sourcing strategies of SMEs

Assessment of the Potential and Prospects for the Development of High-Technology and Medium-High-Technology Types of Industrial Activities in Ukraine

Productivity, Profitability and Employment: Exploring the Different Effects of the Offshoring Mode

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