Creating Value through Offshore Outsourcing: An Integrative Framework

Forthcoming, Journal of International Management.

42 Pages Posted: 24 Feb 2013

See all articles by Debmalya Mukherjee

Debmalya Mukherjee

University of Akron - College of Business Administration

Ajai Gaur

Rutgers Business School - Newark and New Brunswick

Avimanyu Datta

College of Business, Illinois State University

Date Written: February 22, 2013

Abstract

This article proposes an analytical framework to explain value creation through offshore outsourcing by addressing a key question: How do firms create value by outsourcing their business functions to foreign external providers? The growing prevalence of offshore outsourcing as a dominant business practice in global business makes this question worthy of further research attention. Situated within the organizational design literature, our proposed value creation framework also draws from strategic resource management, disintegration, location–specific resourcing, and externalization (D-L-E) and contingency perspectives. Our analysis shows that firms embarking on offshore outsourcing create value by effectively managing their internal and external resources in accordance with a changing global environment. The framework has significant implications for theory and practice and suggests avenues for further research.

Keywords: Offshore outsourcing, resource management, value creation, DLE framework

Suggested Citation

Mukherjee, Debmalya and Gaur, Ajai S. and Datta, Avimanyu, Creating Value through Offshore Outsourcing: An Integrative Framework (February 22, 2013). Forthcoming, Journal of International Management., Available at SSRN: https://ssrn.com/abstract=2223037

Debmalya Mukherjee (Contact Author)

University of Akron - College of Business Administration ( email )

Ajai S. Gaur

Rutgers Business School - Newark and New Brunswick ( email )

Newark, NJ
United States

Avimanyu Datta

College of Business, Illinois State University ( email )

State Farm Hall of Business Suite 214A
Normal, IL 61790-5580
United States
(309) 438-7991 (Phone)
(309) 438-8201 (Fax)

HOME PAGE: http://avimanyu.weebly.com

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