Antecedents and performance consequences of international outsourcing
Mol, Michael J., Tulder, Rob van and Beije, P. R. (Paul R.), 1952-. (2005) Antecedents and performance consequences of international outsourcing. International Business Review, Vol.14 (No.5). pp. 599-617. ISSN 0969-5931
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Official URL: http://dx.doi.org/10.1016/j.ibusrev.2005.05.004
The outsourcing of intermediate products to international suppliers is believed to improve firm performance. We investigate this claim and test key dimensions of the decision to outsource internationally using survey data on 200 manufacturing firms located in the Netherlands. We find that most international outsourcing is intra-regional in nature. Furthermore international outsourcing is a consequence of a firm‟s ability to search and evaluate foreign suppliers, which is co-determined by its size, multinationality, and frequency of cross-border communications. Finally, no performance effects were observed for international or global outsourcing. We conclude international outsourcing is a balancing act between lower production costs abroad and lower transaction costs locally.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HD Industries. Land use. Labor|
|Divisions:||Faculty of Social Sciences > Warwick Business School|
|Library of Congress Subject Headings (LCSH):||Offshore outsourcing, Manufacturing industries -- Netherlands|
|Journal or Publication Title:||International Business Review|
|Official Date:||October 2005|
|Page Range:||pp. 599-617|
|Access rights to Published version:||Restricted or Subscription Access|
Bartlett, C.A., & Ghoshal, S. (1989). Managing across borders: The transnational corporation. Boston: Harvard University Press.
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