Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.

In this paper we explore the question of why firms offshore particular services to specific geographic locations. We draw on research related to the unique characteristics of services in trade and commerce, and more recent analyses of the transnational unbundling and spatial dispersion of business p...

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Main Authors: Doh, Jonathan P., Bunyaratavej, Kraiwinee., Hahn, Eugene D.
Format: Villanova Faculty Authorship
Language:English
Published: 2009
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spelling Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
Doh, Jonathan P.
Bunyaratavej, Kraiwinee.
Hahn, Eugene D.
In this paper we explore the question of why firms offshore particular services to specific geographic locations. We draw on research related to the unique characteristics of services in trade and commerce, and more recent analyses of the transnational unbundling and spatial dispersion of business processes. We move beyond a simple assessment of the cost sensitivity or relative sophistication of offshoring services and develop a typology emphasizing the degree to which offshoring services activities are interactive, repetitive, or innovative. We suggest that the location of offshoring projects will depend on the particular mix of these attributes, and test this assertion using a data set of 595 export-oriented offshore services projects initiated from 2002 to 2005 by US and UK company parents in 45 developed and developing countries. We find that offshore location choices greatly depend on these services characteristics, and in sometimes surprising ways, and draw implications from our findings for international business theory, policy, and practice.
2009
Villanova Faculty Authorship
vudl:175850
Journal of International Business Studies 40, 2009, 926-943.
en
dc.title_txt_mv Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
dc.creator_txt_mv Doh, Jonathan P.
Bunyaratavej, Kraiwinee.
Hahn, Eugene D.
dc.description_txt_mv In this paper we explore the question of why firms offshore particular services to specific geographic locations. We draw on research related to the unique characteristics of services in trade and commerce, and more recent analyses of the transnational unbundling and spatial dispersion of business processes. We move beyond a simple assessment of the cost sensitivity or relative sophistication of offshoring services and develop a typology emphasizing the degree to which offshoring services activities are interactive, repetitive, or innovative. We suggest that the location of offshoring projects will depend on the particular mix of these attributes, and test this assertion using a data set of 595 export-oriented offshore services projects initiated from 2002 to 2005 by US and UK company parents in 45 developed and developing countries. We find that offshore location choices greatly depend on these services characteristics, and in sometimes surprising ways, and draw implications from our findings for international business theory, policy, and practice.
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dc.source_txt_mv Journal of International Business Studies 40, 2009, 926-943.
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author Doh, Jonathan P.
Bunyaratavej, Kraiwinee.
Hahn, Eugene D.
spellingShingle Doh, Jonathan P.
Bunyaratavej, Kraiwinee.
Hahn, Eugene D.
Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
author_facet Doh, Jonathan P.
Bunyaratavej, Kraiwinee.
Hahn, Eugene D.
dc_source_str_mv Journal of International Business Studies 40, 2009, 926-943.
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dc_title_str Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
description In this paper we explore the question of why firms offshore particular services to specific geographic locations. We draw on research related to the unique characteristics of services in trade and commerce, and more recent analyses of the transnational unbundling and spatial dispersion of business processes. We move beyond a simple assessment of the cost sensitivity or relative sophistication of offshoring services and develop a typology emphasizing the degree to which offshoring services activities are interactive, repetitive, or innovative. We suggest that the location of offshoring projects will depend on the particular mix of these attributes, and test this assertion using a data set of 595 export-oriented offshore services projects initiated from 2002 to 2005 by US and UK company parents in 45 developed and developing countries. We find that offshore location choices greatly depend on these services characteristics, and in sometimes surprising ways, and draw implications from our findings for international business theory, policy, and practice.
title Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
title_full Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
title_fullStr Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
title_full_unstemmed Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
title_short Separable But not Equal: The Location Determinants of Discrete Offshoring Activities.
title_sort separable but not equal: the location determinants of discrete offshoring activities.
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