Offshoring experience and performance: the role of realized drivers and risk management
ISSN: 1359-8546
Article publication date: 18 October 2018
Issue publication date: 13 November 2018
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
Acknowledgements
The financial support from the Danish Council for Strategic Research is gratefully acknowledged.
Citation
Haleem, F., Farooq, S., Wæhrens, B.V. and Boer, H. (2018), "Offshoring experience and performance: the role of realized drivers and risk management", Supply Chain Management, Vol. 23 No. 6, pp. 531-544. https://doi.org/10.1108/SCM-02-2018-0074
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited