Governance modes for offshoring activities: A comparison of US and German firms |
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Authors: | Thomas Hutzschenreuter Arie Y Lewin Stephan Dresel |
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Institution: | 1. College of Business, 11200 S.W. 8th Street, Florida International University, Miami, FL 33199, United States;2. School of Business, 1654 Naismith Drive, University of Kansas, Lawrence, KS 66045, United States |
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Abstract: | A new field of research centered on the offshoring of white-collar tasks is opening. We analyze the choice of governance mode for international offshoring activities based on a four-fold framework that integrates multiple theoretical perspectives. Firms choose between an internal or external mode based on their institutional environment, the offshoring behavior of similar firms in their reference group, firm-specific characteristics and objectives, and the particular setting of specific implementations. We test our relationships using detailed data on offshoring activities of US and German firms. Based on the outcomes we conclude that each dimension of the chosen framework is needed to explain the governance mode decisions of firms and this overarching framework may also be applicable to other topics in internationalization research. |
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