Goal Deviation Responses in Offshoring

Carlos Adrian Rodriguez, Luciano Ciravegna, Bent Petersen

Publikation: Bidrag til bog/antologi/rapportKonferenceabstrakt i proceedingsForskningpeer review

Abstract

This study analyzes how firms respond to goal deviation in their offshoring operations. Using Performance Feedback theory we argue that deviation from goals triggers feedback mechanisms that shape firms' offshoring strategy. We further argue that firms' strategic response varies with the governance mode of the offshoring project, the type of goals set for the project, and the direction of the goal deviation. Hence, it matters to firms' strategic response whether the project is in-house or outsourced, if the goal is financial or operational, and whether the goal deviation goes in a positive or negative direction. Examining a dataset of 348 offshoring projects, we find that in the case of in-house offshoring, negative deviation from financial performance goals is associated with a higher likelihood of geographic expansion – entering new foreign offshoring locations. In the case of outsourced offshoring projects, positive deviation from financial goals is associated with a higher likelihood of geographic expansion. Irrespective of governance mode, positive deviation from operational goals is associated with a higher likelihood of functional expansion – an extension of the range of activities offshored in a given foreign location.
OriginalsprogEngelsk
TitelProceedings of the Eighty-fourth Annual Meeting of the Academy of Management
RedaktørerSonia Taneja
Antal sider1
UdgivelsesstedValhalla, NY
ForlagAcademy of Management
Publikationsdato2024
DOI
StatusUdgivet - 2024
BegivenhedThe Academy of Management Annual Meeting 2024: Innovating for the Future: Policy, Purpose, and Organizations - Chicago, USA
Varighed: 9 aug. 202413 aug. 2024
Konferencens nummer: 84
https://aom2024.eventscribe.net/

Konference

KonferenceThe Academy of Management Annual Meeting 2024
Nummer84
Land/OmrådeUSA
ByChicago
Periode09/08/202413/08/2024
Internetadresse
NavnAcademy of Management Annual Meeting Proceedings
ISSN0065-0668

Citationsformater