The Evolution of Risk in Information Systems Offshoring: The Impact of Home Country Risk, Firm Learning, and Competitive Dynamics

Hahn, Eugene D.; Doh, Jonathan P.; Bunyaratavej, Kraiwinee

doi:10.2307/20650312

Cited by 69 publications

(52 citation statements)

References 75 publications

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“…Each region is endowed with resources and infrastructure that create both opportunities and risks and therefore trade‐offs for MNEs. As Hahn et al. (2009) argue, uncertainty, and therefore risk, is a natural starting point for offshore location decisions.…”

Section: Introductionmentioning

confidence: 99%

Factors Determining Offshore Location Choice for R&D Projects: A Comparative Study of Developed and Emerging Regions

Demirbağ

Glaister

2010

J Management Studies

188

150

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This paper examines empirically the determinants of offshore location choice between country clusters. Based on a dataset of 1722 R&D projects by MNEs located in developed and emerging countries, we examine the impact of home and host country, industry, and firm level variables on choice of location. We draw on the extended OLI paradigm to develop our hypotheses. Using the EU15 as a base group, a multinomial logit model is estimated between the regions of USA&Canada, Eastern Europe&Russia, emerging countries of Asia, and India&China. At the regional level, findings show that the R&D wage difference and knowledge infrastructure difference between home and host countries, the science and engineering talent pool size, and political risk level of host countries are important determining factors. At the firm level, experience of overseas R&D projects and prior experience of research in the host country are found to be important location determinants. A distinguishing feature of the paper is that we examine regions in relation to a base region, and then further examine the impact of a marginal change in independent variables on the likelihood of the choice of a region for new offshore R&D projects. Copyright (c) 2010 The Authors. Journal of Management Studies (c) 2010 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.

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Section: Introductionmentioning

confidence: 99%

Factors Determining Offshore Location Choice for R&D Projects: A Comparative Study of Developed and Emerging Regions

Demirbağ

Glaister

2010

J Management Studies

188

150

View full text Add to dashboard Cite

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“…Consistent with this argument, Globerman and Shapiro (2002) posit that a country's governance infrastructure-its political, institutional, and legal environment-is an important determinant of private investments. Hahn et al (2009) found evidence of firms seeking host countries with comparable levels of risk as their home countries, although the effect was attenuated after controlling for other factors. Nonetheless, emerging and transition economy environments characterized by risk translate to significant transaction costs primarily reflecting the legal and financial complexity of reaching contractual agreements between numerous parties in unfamiliar and unique environments (Klein et al 1996).…”

Section: Risk Differentialmentioning

confidence: 95%

Impacts of Risk and Service Type on Nearshore and Offshore Investment Location Decisions

2011

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0Offshoring of services has gained considerable attention in management circles. however, little empirical research has explored the emerging sourcing alternative of nearshoring, despite the fact that firms situate about one out of five projects abroad in a nearshore location as opposed to an offshore location. 0 We empirically assess the impact of economic and risk factors regarding firms' services location choices between offshoring and nearshoring. We find these factors influence firm decision-making regarding services offshoring location choices, and that these factors are more or less important to firms depending on whether the firm offshores relatively higher versus relatively lower skill services. 0Offshoring firms appear willing to trade off some gains in one area (lower wages) to mitigate costs in others (higher risk), and that the factors that drive nearshoring are qualitatively different than those that influence offshoring.

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“…Furthermore, organisations that apply formal structures can facilitate knowledge sharing within those structures. Elements of such formal structures include integration committees, information systems, and matrix structures, and each different element can increase the breadth, efficiency and quality of information sharing between organisations (Daft and Lengel, 1984;Hahn et al, 2009).…”

Section: Managerial Implicationsmentioning

confidence: 99%

Country risk, multimarket contacts and MNEs' competitive action

Chiao

2014

IJBE

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Abstract:In light of the lack of empirical evidence on discussing international business issue by integrating MNEs competitive dynamics. This study investigates the moderating role that multimarket contact play in MNEs' country risk and competitive action. Examining a sample of top 20 container shipping MNEs in terms of collecting 2,117 competitive actions from Shipping Digest, this study finds that when MNEs face higher country risks, they undertake fewer competitive actions. On the other hand, this study also shows that MNEs with higher degrees of multimarket contact between MNEs weaken the negative relationship between country risk and a focal firm's competitive actions. This study extends mutual forbearance theory to international context by investigating how multimarket contact impacts the relationship between country risk and a focal firm's competitive actions. The implications of these findings for research and practice are discussed.

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The Evolution of Risk in Information Systems Offshoring: The Impact of Home Country Risk, Firm Learning, and Competitive Dynamics

Cited by 69 publications

References 75 publications

Factors Determining Offshore Location Choice for R&D Projects: A Comparative Study of Developed and Emerging Regions

Factors Determining Offshore Location Choice for R&D Projects: A Comparative Study of Developed and Emerging Regions

Impacts of Risk and Service Type on Nearshore and Offshore Investment Location Decisions

Country risk, multimarket contacts and MNEs' competitive action

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