The Strategic Nexus of Offshoring and Outsourcing Decisions

Ram Mudambi · Markus Venzin

336 citations0/0 files storedJournal of Management Studies

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Outsourcing and Supply Chain Management International Business and FDI Global trade, sustainability, and social impact

Abstract

abstract One important effect of the increasing integration of the world economy is the rising importance of possibilities to offshore and outsource value‐creating activities. In many industries, firms are able to disaggregate their value chains into smaller parts. This process allows for a less path‐dependent approach to the firm's ideal location profile (through offshoring and relocation) and control strategies (through outsourcing). This article argues that optimal decisions regarding individual processes recognize the linkages of these processes with the firm's entire value chain. The article explores the magnitude, sequence, and dynamics of interdependent decisions regarding the location and control of various parts of the value chain. By using case illustrations from the mobile handset and financial services industries, this article provides a novel perspective on the disintegration, mobility, and reintegration of value chain activities in a global context.

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2018The Global Platform Economy: A New Offshoring Institution Enabling Emerging-Economy Microproviders 2010Make, Buy or Ally? Theoretical Perspectives on Knowledge Process Outsourcing through Alliances 2016Motivations of manufacturing reshoring: an interpretative framework 2019Backshoring strategy and the adoption of Industry 4.0: Evidence from Europe 2013Mapping Global Value Chains 2013A Systematic Review of Literature on Offshoring of Value Chain Activities

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