Offshoring experience and performance: the role of realized drivers and risk management

Purpose Many factors have been identified that may drive a firm’s decision to offshore production activities. The actual performance effects of offshoring, however, depend on the extent to which these drivers are realized. Furthermore, the question is how risk management helps mitigating the risk in...

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Veröffentlicht in:Supply chain management 2018-11, Vol.23 (6), p.531-544
Hauptverfasser: Haleem, Fazli, Farooq, Sami, Wæhrens, Brian Vejrum, Boer, Harry
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container_end_page 544
container_issue 6
container_start_page 531
container_title Supply chain management
container_volume 23
creator Haleem, Fazli
Farooq, Sami
Wæhrens, Brian Vejrum
Boer, Harry
description Purpose Many factors have been identified that may drive a firm’s decision to offshore production activities. The actual performance effects of offshoring, however, depend on the extent to which these drivers are realized. Furthermore, the question is how risk management helps mitigating the risk involved in offshoring ventures, thus leading to better performance outcomes. The purpose of this study is to investigate the extent to which realized offshoring drivers and risk management mediate the relationship between offshoring experience and firm performance. Design/methodology/approach Data from the Global Operations Networks project, a cross-sectional survey administered in Denmark and Sweden, are used to test two hypotheses on the mediating role of realized offshoring drivers and risk management in the relationship between offshoring experience and firm performance. AMOS version 23 is used to perform the analyses. Findings The results demonstrate that realized offshoring drivers fully mediate the relationship between offshoring experience and firm performance. However, risk management does not mediate the relationship between offshoring experience and firm performance. Originality/value This study develops new theory on, and managerial insight into, the mediating role of realized offshoring drivers and risk management in the relationship between offshoring experience and firm performance.
doi_str_mv 10.1108/SCM-02-2018-0074
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source Emerald Journals; Standard: Emerald eJournal Premier Collection
subjects Costs
Flexibility
Globalization
Hypotheses
Literature reviews
Market positioning
Mediators
Offshore
Offshore production
Outsourcing
Principal components analysis
Productivity
Risk
Risk management
Stockholders
Studies
Suppliers
Supply chain management
title Offshoring experience and performance: the role of realized drivers and risk management
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