Originality/value of chapter – We provide a theoretical framework that proposes that the offshoring of knowledge intensive services (KIS) and that of labour-intensive services (LIS) will differentially influence the ability of firms to introduce new products and services. While the offshoring of KIS has an inverted U-shaped influence on entrepreneurial activity, the offshoring of LIS has a positive impact. In addition, we propose that these relationships are conditioned by organisational (i.e. governance mode) and managerial (i.e. TMT reflexivity) factors. Specifically, we argue that the degree of integration with the offshore affiliate and TMT reflexivity each moderate the non-linear relationship between offshoring KIS and innovation in such a way that the positive effects of low levels of offshoring KIS will be stronger and the negative effects of high levels of offshoring KIS will be lower. In addition, we argue that the degree of integration constrains and TMT reflexivity enhances the relationship between offshoring LIS and innovation.
Mihalache, O.R., Mihalache, M. and Jansen, J.J.J.P. (2011), "Chapter 10 Offshoring Knowledge Versus Labour-Intensive Services and Entrepreneurial Activity: A Contingency Perspective", Verbeke, A., Tavares-Lehmann, A.T. and Van Tulder, R. (Ed.) Entrepreneurship in the Global Firm (Progress in International Business Research, Vol. 6), Emerald Group Publishing Limited, Bingley, pp. 225-249. https://doi.org/10.1108/S1745-8862(2011)0000006013
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