Abstract
Firms engage in offshoring activities for various reasons, ultimately to increase competitive advantage. By integrating human capital theories in the strategy-performance models, we propose that hiring decisions regarding sources of human capital affect performance post-offshoring. To test our hypothesis, we use a 2009-2014 panel dataset with 8,172 company-year observations and 1,362 exactly matched Danish companies -681 offshoring and 681 non-offshoring companies -containing financial-, mobility-, and offshoring information. We find that focusing on more internal hiring helps offshoring companies to perform better post-offshoring, whereas hiring from external sources decreases onshore performance. In the offshoring sub-sample of firms, we find that these effects are particularly salient for companies that offshore core activities or to distant-to-home locations. This is in line with our argument that firm-specific human becomes even more valuable post-offshoring, and that internal hiring can boost onshore performance. The paper contributes to the international business and human capital literature and aims to make managers aware of the need for an internal talent pipeline when engaging in offshoring.
Original language | English |
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Title of host publication | Proceedings of the Eighty-second Annual Meeting of the Academy of Management |
Editors | Sonja Taneja |
Number of pages | 1 |
Place of Publication | Briarcliff Manor, NY |
Publisher | Academy of Management |
Publication date | 2022 |
Pages | 2171 |
DOIs | |
Publication status | Published - 2022 |
Event | The Academy of Management Annual Meeting 2022: Creating a Better World Together - Seattle, United States Duration: 5 Aug 2022 → 9 Aug 2022 Conference number: 82 https://2022.aom.org/ |
Conference
Conference | The Academy of Management Annual Meeting 2022 |
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Number | 82 |
Country/Territory | United States |
City | Seattle |
Period | 05/08/2022 → 09/08/2022 |
Internet address |
Series | Academy of Management Proceedings |
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ISSN | 0065-0668 |