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| Author: | Jensen, P.D. Pedersen, T. |
| Title: | The economic geography of offshoring: the fit between activities and local context |
| Journal: | Journal of Management Studies
2011 : MAR, VOL. 48:2, p. 352-372 |
| Index terms: | economic geography outsourcing information technology offshore industry location of industry international Asia Europe North America |
| Language: | eng |
| Abstract: | This paper proposes three hypotheses relying on the assumption that the choice of offshoring location is based on the fit between the attributes (herein as: attrs.) of different destinations (as: dests.) and the attrs. of the off-shored business activities. In the study, a multi-faceted location pattern is uncovered in which firms' location strategies (to some extent) follow a logic whereby manufacturing is relocated to low-cost dests., and research and development (R&D) is relocated to high-cost dests. Yet, when distinguishing btw. standardized and advanced activities (as: a-acts.), the picture is more detailed. Asia attracts as many a-acts. as Western Europe while North America attracts more a-acts. even in manufacturing. Central and Eastern Europe attract off-shoring in manufacturing and IT. However, the acts. offshored to these regions are typically not advanced ones. |
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