Whether or Not to Prepare for Offshoring: A Simulation Study

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

    Abstrakt

    A consequence of offshoring is increased coordination costs. To counter this, firms can strive to identify a cost reducing organizational configuration either ex ante or ex post to the offshoring implementation. In this paper, we investigate the performance implications of these contrasting strategies through a computational model of offshoring. We find that a proactive approach to offshoring is largely beneficial if the impact of geographic distance and coordination costs relative to production costs is sufficiently high, but that this changes more towards the reactive approach if this diminishes. Thus, we explicate important contingencies in the paradox that firms face when balancing between strategic rationales such as lower production costs in foreign locations and the changing costs of coordination when implementing such strategic rationales.
    OriginalsprogEngelsk
    TitelProceedings of the 54rd Annual Meeting of the Academy of International Business
    RedaktørerSusan Feinberg, Tunga Kiyak
    UdgivelsesstedEast Lansing, MI
    ForlagAcademy of International Business
    Publikationsdato2012
    Sider81
    StatusUdgivet - 2012
    BegivenhedAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, USA
    Varighed: 30 jun. 20123 jul. 2012
    Konferencens nummer: 54
    http://aib.msu.edu/events/2012/

    Konference

    KonferenceAIB 2012 Annual Meeting
    Nummer54
    LokationGeorge Washington University and University of Maryland
    LandUSA
    ByWashington
    Periode30/06/201203/07/2012
    Internetadresse
    NavnAcademy of International Business. Annual Meeting. Proceedings
    Vol/bind54
    ISSN2078-4430

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