Global Outsourcing and Offshoring : An Integrated Approach to Theory and Corporate Strategy

Companies are increasingly asking which of their value chain activities are best performed within their own company and which may be outsourced. In addition, they are also considering which pieces of their value chain may be better performed abroad. These interrelated decisions concerning outsourcing and offshoring have not only changed entire industries, they have also transformed the lives of people across the world. Hundreds of millions of jobs in emerging nations have been the direct result of outsourcing and offshoring decisions. At the same time, many people in the developed world have lost their jobs because a company has been able to find a cheaper alternative. Featuring contributions from scholars in eleven different countries, this book was the first to examine the theory and practice of outsourcing and offshoring simultaneously. It includes studies of a variety of different industries, including pharmaceuticals, automobiles, medical records, appliances, human resource management and telecommunications. Companies Are Increasingly Asking Which Of Their Value Chain Activities Are Best Performed Within Their Own Company And Which May Be Outsourced. In Addition, They Are Also Considering Which Pieces Of Their Value Chain May Be Better Performed Abroad. These Interrelated Decisions Concerning Outsourcing And Offshoring Have Not Only Changed Entire Industries, They Have Also Transformed The Lives Of People Across The World. Hundreds Of Millions Of Jobs In Emerging Nations Have Been The Direct Result Of Outsourcing And Offshoring Decisions. At The Same Time, Many People In The Developed World Have Lost Their Jobs Because A Company Has Been Able To Find A Cheaper Alternative. Featuring Contributions From Scholars In Eleven Different Countries, This Book Is The First To Examine The Theory And Practice Of Outsourcing And Offshoring Simultaneously. It Includes Studies Of A Variety Of Different Industries, Including Pharmaceuticals, Automobiles, Medical Records, Appliances, Human Resource Management, And Telecommunications-- Global Outsourcing And Offshoring: In Search Of The Optimal Configuration For A Company / Farok J. Contractor, Vikas Kumar, Torben Pedersen And Sumit Kundu -- Globalization Of R&d: Offshoring Innovative Activity To Emerging Economies / Ashok Bardhan And Dwight Jaffee -- A Theory Of The Outsourcing Firm / Dave Luvison And Mike Bendixen -- Blurring Firm R&d Boundaries: Integrating Transaction Costs And Knowledge-based Perspectives / Andrea Martinez-noya And Esteban Garcia-canal -- Outsourcing, Fragmentation And Integration: The Pharmaceutical Industry / Janis K. Kapler And Kimberly A. Puhala -- Towards A Better Understanding Of Multinational Enterprises' R&d Location Choices Ana Colovic -- Does R&d Offshoring Displace Or Strengthen Knowledge Production At Home? Evidence From Oecd Countries / Lucia Piscitello And Grazia D. Santangelo -- Innovation Across Firm Boundaries: A Knowledge Based View / Salma Alguezaui And Raffaele Filieri --^ Suitable Organization Forms For Knowledge Management At Various R&d Functions In Decentralized And Cooperative R&d Networks / Hsing Hung Chen -- Changing Work Practices: Acceptance Of Virtual Work Among Knowledge Professionals Engaged In Offshoring Activities / Elisa Mattarelli And Maria Rita Tagliaventi -- Managing Globally Disaggregated Teams: The Role Of Organizational Politics / Shahzad M. Ansari, Jatinder S. Sidhu, Henk W. Volberda And Ilan Oshri -- Offshoring Of High-value Functions: A Case Study Of Us-india Trade In Medical Transcription Services / Nir Kshetri And Nikhilesh Dholakia -- Offshoring Of It And Business, Professional And Technical Services: The Recent Experience Of The United States Thomas J. Norman And Mahmood A. Zaidi -- Outsourcing Human Resource Activities / Thomas J. Norman -- Managing Core Outsourcing To Address Fast Market Growth: A Study Of An Indian Mobile Telecom Service Provider / Raghunath Subramanyam --^ Imitative Offshoring Strategies: Lessons Learnt From Italian Small Domestic Appliance Industry / Gabriella Lojacono And Olga Annushkina. [edited By] Farok J. Contractor ... [et Al.]. Includes Bibliographical References And Index. Machine generated contents note: List of figures List of tables List of contributors Preface Part I. Conceptual Frameworks and Theories: 1. Global outsourcing and offshoring: in search of the optimal configuration for a company Farok J. Contractor, Vikas Kumar, Torben Pedersen and Sumit Kundu 2. Globalization of R&D: offshoring innovative activity to emerging economies Ashok Bardhan and Dwight Jaffee 3. A theory of the outsourcing firm Dave Luvison and Mike Bendixen Part II. The Offshoring and Outsourcing of R&D and Innovative Activities: 4. Blurring firm R&D boundaries: integrating transaction costs and knowledge-based perspectives Andrea Martinez-Noya and Esteban Garcia-Canal 5. Outsourcing, fragmentation and integration: the pharmaceutical industry Janis K. Kapler and Kimberly A. Puhala 6. Towards a better understanding of multinational enterprises' R&D location choices Ana Colovic 7. Does R&D offshoring displace or strengthen knowledge production at home? Evidence from OECD countries Lucia Piscitello and Grazia D. Santangelo 8. Innovation across firm boundaries: a knowledge based view Salma Alguezaui and Raffaele Filieri 9. Suitable organization forms for knowledge management at various R&D functions in decentralized and cooperative R&D networks Hsing Hung Chen Part III. Management Issues in Offshoring and Virtual Teamwork: 10. Changing work practices: acceptance of virtual work among knowledge professionals engaged in offshoring activities Elisa Mattarelli and Maria Rita Tagliaventi 11. Managing globally disaggregated teams: the role of organizational politics Shahzad M. Ansari, Jatinder S. Sidhu, Henk W. Volberda and Ilan Oshri Part IV. Empirical Analyses and Case Studies of Outsourcing and Offshoring: 12. Offshoring of high-value functions: a case study of US-India trade in medical transcription services Nir Kshetri and Nikhilesh Dholakia 13. Offshoring of IT and business, professional and technical services: the recent experience of the United States Thomas J. Norman and Mahmood A. Zaidi 14. Outsourcing human resource activities Thomas J. Norman 15. Managing core outsourcing to address fast market growth: a study of an Indian mobile telecom service provider Raghunath Subramanyam 16. Imitative offshoring strategies: lessons learnt from Italian small domestic appliance industry Gabriella Lojacono and Olga Annushkina Index. Cover......Page 1 Frontmatter......Page 2 Contents......Page 6 List of figures......Page 9 List of tables......Page 10 List of boxes......Page 13 Notes on contributors......Page 14 Preface: the reconfiguration of the world economy......Page 26 Part I - Conceptual frameworks and theories......Page 30 1 - Global outsourcing and offshoring......Page 32 2 - Globalization of R&D......Page 77 3 - A theory of the outsourcing firm......Page 102 Part II - The offshoring and outsourcing of R&D and innovative activities......Page 134 4 - Blurring firm R&D boundaries......Page 136 5 - Outsourcing, fragmentation, and integration......Page 166 6 - Towards a better understanding of multinational enterprises' R&D location choices......Page 197 7 - Does R&D offshoring displace or strengthen knowledge production at home? Evidence from OECD countries......Page 220 8 - Innovation across tech-firms' boundaries......Page 239 9 - Suitable organization forms for knowledge management at various R&D functions in decentralized and cooperative R&D networks......Page 268 Part III - Management issues in offshoring and virtual teamwork......Page 294 10 - Changing work practices......Page 296 11 - Managing globally disaggregated teams......Page 326 Part IV - Empirical analyses and case studies of outsourcing and offshoring......Page 354 12 - Offshoring of high-value functions......Page 356 13 - Offshoring of IT and business, professional, and technical services......Page 384 14 - Outsourcing human resource activities......Page 407 15 - Managing core outsourcing to address fast market growth......Page 431 16 - Imitative offshoring strategies......Page 440 Index......Page 477

Global Outsourcing and Offshoring deals with some of the most fundamental structural and organizational issues facing many companies today. It considers two key strategic decisions, firstly Outsourcing: which activities or functions should be kept in-house versus outsourced; and Offshoring: in which nation is a particular function or operation best performed? These are interrelated and simultaneous decisions that are changing the spatial and organizational configuration of entire industries. The book integrates academic theories from diverse fields, including Economics, Strategy, and Industrial Organization. Contributions are drawn from scholars from 11 nations, who relate theory to practice in the pharmaceutical, automobile, medical records, appliances, human resource management, and telecommunications fields.