Mitigate, Tolerate or Relocate? Offshoring Challenges, Strategic Imperatives and Resource Constraints

Authors

Stephan Manning, stephan.manning@umb.eduFollow

Document Type

Article

Publication Date

2014

Abstract

This paper examines key firm-level factors influencing initial strategic responses to offshoring implementation challenges. Comparative case findings indicate that firms are likely to try to mitigate challenges if they perceive to have control over their cause; if strategic objectives are diverse; and if firms have abundant resources available. By comparison, firms tolerate challenges if cost is a strategic imperative, or if resource endowments are limited. Firms relocate operations temporarily or permanently in particular if challenges are externally caused, whereby temporary relocation requires investments into flexible global infrastructures. Findings reveal critical contingencies of capability development and learning in offshoring and beyond.

Recommended Citation

Manning, S. 2014. “Mitigate, Tolerate or Relocate? Offshoring Challenges, Strategic Imperatives and Resource Constraints”. Journal of World Business, 49 (4), 522-535.

Publisher

Journal of World Business