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

Fazli Haleem, Sami Farooq, Brian Vejrum Wæhrens, Harry Boer

Research output: Contribution to journalJournal articleResearchpeer-review

5 Citations (Scopus)

Abstract

Abstract
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.
Keywords Performance, Surveys, Sweden, Denmark, Risk management, Offshoring
Paper type Research paper
Original languageEnglish
JournalSupply Chain Management: An International Journal
Volume23
Issue number6
Pages (from-to)531-544
Number of pages14
ISSN1359-8546
DOIs
Publication statusPublished - 10 Sep 2018

Keywords

  • Denmark
  • Offshoring
  • Performance
  • Risk management
  • Surveys
  • Sweden

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