Risks and governance modes in offshoring decisions: Linking supply chain management and international business perspectives

Andrea S. Patrucco, Vittoria G. Scalera, Davide Luzzini

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

Governing offshoring has become a major challenge for firms that run operations outside the home country. International business (IB) and supply chain management (SCM) literature offer different insights on the topic, focusing especially on possible governance modes and the drivers of this choice, with different perspectives. Grounding the discussion at the intersection between these two research fields, the present study first proposes a taxonomy of offshoring risks (i.e. tasks, operational, reputational and institutional), with corresponding risk factors in each category; then, a set of research propositions are formulated, in order to link these categories to the governance-mode choice. Furthermore, we argue that the risk-governance link is moderated by two relevant factors, that is, the offshoring firm size and the strategic relevance of the outsourced activity. As a result, we elaborate on the interrelation between IB and SCM theories, emphasising the impact of risk management and contingent factors in offshoring governance modes configurations.

Original languageEnglish (US)
Pages (from-to)170-182
Number of pages13
JournalSupply Chain Forum
Volume17
Issue number3
DOIs
StatePublished - Jan 1 2016

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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