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Antecedents of the Offshoring Governance Mode and the Sustainability of Offshore Outsourcing Relationships
Schürch, Marc A.
Offshoring; Organisationsstruktur; Make or buy; Unternehmensbezogene Dienstleistung; Governance; Transaktionskostenansatz; Agency-Theorie
DDC (Dewey Decimal Classification)
Wirtschaft - 330
Freie Stichwörter (deutsch)
Dienstanbieter; Offshore-Outsourcing; Outsourcing; Service provider
Freie Stichwörter (englisch)
Governance Mechanisms; Transaction Cost Economics; Agency-Theory
Offshoring concerns the relocation of white-collar business processes from one country to another. Research about the business- and economic rationales of this strategy is abundant; yet we cannot sufficiently explain offshoring governance decisions and their consequences. This dissertation elaborates on the antecedents of the mode of governance in offshoring, i.e., it addresses the question whether offshoring is performed "in-house" with a captive entity, or with the support of a third party service provider. Building on the insights into this "make-or-buy" decision, this dissertation further tackles the nature of client-service provider relationships. The literature suggests that in external service relationships (such as, for instance, auditing), the dissolution of contracts is a rare event (Levinthal & Fichman, 1988). I assume that offshoring relationships are similar in this regard. In order to facilitate the longevity of the relationships, mechanisms that aim at reducing potential agency costs need to be put in place. I will provide an empirical explanation for the sustainability of relationships between clients and service providers in offshoring.
Referring to the market entry mode literature, both transactional theories and the capabilities perspective provide fertile ground for an explanation of decisionmaking in offshoring. In the context of client-service provider relationships, I further find empirical support of hypotheses derived from agency theory. Research was conducted by applying two surveys. The first survey was launched among companies who are active in offshoring as a client. The second survey addresses providers delivering services in the offshore locations. Both surveys were launched on a global scale, with a particular focus on the US and Europe, on the one hand, and the most popular offshoring locations, on the other hand. Findings from this dissertation contribute to the theoretical understanding of the emerging offshoring practice. In particular, they show that initial governance mode decisions are primarily influenced by the characteristics of the functions offshored, by cultural distance, by isomorphistic imitation, as well as firm-specific capabilities. Subsequent governance mode decisions are determined by path-dependent characteristics. Finally, the findings also contribute to recent research on the governance of offshore outsourcing relationships.
Ruigrok, Winfried (Prof. Dr.)
Zelner, Bennet A. (Prof. PhD)
Erweitertes Diss. Komitee
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