- Title: Mr
- Position: PhD Student - Department of Marketing and Management
- Load: PhD Student Full Time
- Principal supervisor: Associate Professor Stephen Chen
- Associate supervisor: Doctor David Gray
- Date of submission: 01/04/2011
- Thesis title: Is Offshoring decision a Strategic Orientation for growth or a Strategic Response to declining Firm Performance?
The research aims to improve upon the existing empirical literature on service offshoring, by examining the relationship between different Offshoring Approaches and Degree of Offshoring and the impact of Degree of Offshoring on Firm’s Performance.
On-line and telephone survey targeting a sample of 1000 Australian small to medium-sized firms (mainly) as well as large firms were conducted.
The Unique feature of the survey was its focus on surveying the specific offshore implementations and not on firms’ general experience with offshoring. The survey also included both firms that do already offshore as well as firms that have considered offshoring but have not yet initiated the offshoring of any applications.
The data was analyzed using regression analysis.
The research findings indicate that for a firm in which offshoring activity is in consonance with its Strategic Orientation, the propensity to offshore will be higher than a firm using offshoring as a Strategic Response to performance down-turn. Moreover, the research findings indicate that using offshoring as a long-term strategic orientation as opposed to a short-term quick response exerts positive effects on firm’s performance.
Research implications/ limitations
The limitation of this research can be associated to standard limitations in testing small-medium sized firms using pure quantitative survey instrument and findings might be country-specific.
This research will have significant implications for both managers and government and non-government organizations engaged in service offshoring.
Most offshoring research studies that have examined various facets of offshoring, they have focused on its rationale, its effect on employees, its legal implications for employment, the managerial implications of offshoring and the relationship between offshoring and productivity. Surprisingly, little research has addressed the relationship between different approaches and degree of offshoring and the impact of degree of offshoring on firm’s performance.
This research fills this gap in our knowledge by examining two research questions:
- The relationship between firm’s Offshoring approach (Strategic or Quick-fix) and the Benefit it obtains from offshoring.
- Do performance gains differ depending on use of offshoring as a long-term Strategic Orientation aligned with overall business strategy as opposed to a short-term Quick-Fix Response to performance downturn?
Offshoring Approaches, Degree of Offshoring, Strategic Orientation, Strategic Response, Quick-fix, Firm’s Performance.
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