Abstracts
SESSION 1: Panel 1
Global Sourcing of Goods and Services:
Lessons Learned, Emerging Trends, and Enduring Challenges
Janet Y. Murray, University of Missouri – St. LouisMary Lacity, University of Missouri – St. LouisJoseph W. Rottman, University of Missouri – St. Louis
SESSION 2.1: Theory and Practice
30+ Years of Research and Practice of Outsourcing:
Exploring the Past and Anticipating the Future
Jussi Hätönen and Taina Paju Turku School of Economics
jussi.hatonen@tse.fi, taina.paju@tse.fi
Abstract: Outsourcing is a phenomenon that as a practice originated already in the 1950s, but it was not until the 1980s when the strategy was widely adopted in organizations. Since then, the strategy has evolved from a strict cost focused approach towards more cooperative nature, in which cost is only one, often secondary, decision-making criterion. In fact, this paper illustrates that the evolution of the practice has caused several contradictions among researchers, as well as led to the situation where the theoretical background of the phenomenon has recently become much more eutrophic. Through examining existing research, this paper intends to identify the developments of the strategy from practical, as well as from theoretical perspective since its birth up to today. In addition, through providing insights from managers of information technology industry, this paper provides a glimpse to the future – that is – what will be the future directions and research issues in this complex phenomenon.
Keywords: Outsourcing, offshoring, transaction cost, externalization
An Interorganizational Justice Model of Offshoring
Constant D. Beugré, Delaware State University
William Acar, Kent State University
cbeugre@desu.edu, wacar@kent.edu
Abstract: In this article, we develop an inter-organizational justice model to explain the role of perceptions of justice in inter-organizational networks in the context of offshore outsourcing. The model suggests that whenever firms enter into inter-organizational network arrangements, there is always a risk of exploitation. This risk is particularly salient in the context of offshore outsourcing because of geographic, social, and cultural differences. Thus, the model considers perceptions of distributive, procedural, and interactional justice as likely to reduce fear of exploitation and act as the glue that maintains inter-organizational network relationships together. The key assumptions of the model are: (i) offshoring facilitates the emergence of cross-border inter-organizational networks and makes salient issues of cultural differences between boundary spanners; (ii) inter-organizational networks lead to fear of exploitation; (iii) perceptions of justice are likely to reduce fear of exploitation and mitigate the negative impact of fear of exploitation on network engagement; and (iv) strong network engagement is likely to lead to positive network outcomes. Based on the model’s assumptions, we develop a number of testable propositions that lay the groundwork for empirical investigations. Specifically, the model may help explore further the role of perceptions of justice in the management of inter-organizational relationships. This model has implications for management practice as well. Managers could use the inter-organizational justice model to assess shared perceptions of justice among boundary spanners and develop trans-cultural justice competences.
Keywords: Inter-organizational networks, Offshoring, Organizational justice
The Effects of Culture and Institutional Context on Inter-Country
Variance of Outsourcing Practices
Hussam A. Al-Shammari, Indiana University of Pennsylvania
Abstract: Based on a review of previous theoretical and empirical research on outsourcing, we develop a framework to explain antecedents of inter-country variance of outsourcing practices. In this framework, we introduce two important factors that account for this variance: culture and institutional context. We argue that firms in societies with lower levels of uncertainty avoidance and power distance will exhibit higher levels of outsourcing. Further, firms operating in societies with developed institutional context are expected to have higher levels of outsourcing when compared to firms operating in societies with weak levels of institutional development.
SESSION 2.2: Legal, Political, and Ethical Issues in Offshore Outsourcing
The Ethics of Offshoring
Jonathan P. Doh and Brett T. Wilmot, Villanova University
jonathan.doh@villanova.edu, Brett.Wilmot@villanova.edu
Abstract: In this paper, we explore the ethics of services offshoring from the perspective of the core ethical tenets of utilitarianism, Kantian moral philosophy and virtue theory. We begin by outlining the services offshoring phenomenon and the broader context of globalization in which it takes place. We then introduce a specific decision of whether or not to offshore from the standpoint of these three prominent ethical perspectives. We conclude that none of these perspectives is fully adequate for informing the ethics of services offshoring because offshoring necessarily involves broader questions which must be addressed across multiple levels. Indeed, ethical issues surrounding offshoring require the examination of fundamental questions about the nature of business in contemporary life by societies, organizations and individuals. We suggest that an integrated perspective that emphasizes a “common good” framework is the most reasonable approach for addressing this complex phenomenon. Recognizing that there are challenges to arriving at consensus definitions of the common good across cultures and societies, we instead offer parameters within which such questions should be voiced. We conclude by drawing implications of this analysis for the application of ethical reasoning to global governance, national policy, and both organizational and individual business decision-making, especially issues related to the location and form of international strategic initiatives and foreign direct investment projects.
De jure & De facto Property Rights Protection and MNC Location Choices
Srividya Jandhyala, University of Pennsylvania
Abstract: Although largely similar formal regulations to protect property rights have proliferated across many parts of the world, the adherence to these regulations is not consistent. This paper analyzes the role of both formal (de jure) regulations and the de facto protection of property rights on the location choices of Multinational Corporations. States signal their ability to protect property rights by adopting formal regulations. Since formal regulations are a noisy signal, investors’ expectations about treatment of assets are also altered by de facto protection. However, large multinational firms can overcome poor de facto protection in a host country either by transferring learning on managing poor institutions across their international operations or by their ability to arbitrage international location differences. Using a panel of 161 firms from 15 home countries and their foreign investments in 53 host countries in the information services offshoring sector from 2002-2005, the empirical results show that in addition to de jure protection, firms also consider de facto protection of a host country in their location decisions. These effects are moderated by the extent of a firm’s multinational operations.
Outsourcing to Emerging Markets: Managerial and Public Policy Implications
Ashutosh Dixit, Rajshekhar Javalgi and Robert F. Scherer,
Cleveland State University
a.dixit1@csuohio.edu, cba@csuohio.edu, R.SCHERER@csuohio.edu
Abstract: Offshore outsourcing has emerged as a popular competitive strategy. As firms in developed countries (e.g., the U.S) gain competitive advantage, outsourcing to emerging markets is becoming increasingly important source of business renewal and corporate transformation (Kakabadse and Kakabadse, 2005). In spite of the growing strategic significance of sourcing, we have limited knowledge of offshoring and outsourcing to emerging markets. The objectives of this study are fourfold: (1) to provide a better understanding of the concepts of offshoring and outsourcing business models, (2) to discuss relevant theoretical perspectives related to outsourcing (3) to present a taxonomy of outsourcing strategies drawing on the extant literature (e.g., Kotabe and Zhao, 2002), (4) to discuss public policy implications, followed by conclusions and direction for future research.
SESSION 3.1: Costs and Benefits of Outsourcing
The Outsourcing Process
Michael Mol, University of Reading
Abstract: Much research effort has gone into explaining outsourcing levels, and how these might be related to firm performance. By contrast, the outsourcing process, the decision to transfer an activity and possibly assets or people from the organization to an external organization (supplier), the subsequent transfer, and the evaluation of the decision and the transfer, has received much less attention. In this paper, an attempt is made to theorize around the outsourcing process. Using five conceptual perspectives, the different phases of the outsourcing process are detailed and discussed.
R&D Services Outsourcing: Who, What, Where & Why
Andrea Martínez-Noya and Esteban García-Canal, University of Oviedo
noya@uniovi.es, egarcia@uniovi.es
Abstract: In this paper we present the recent trends in R&D outsourcing in high tech industries. Using survey data of 182 US and EU high-tech firms, we address the big questions every researcher has to consider when analyzing a phenomenon: Who is outsourcing R&D? What types of R&D services are being outsourced? Where are firms outsourcing them? Why firms decide to outsource R&D and why in a particular location? Overall, we find evidence that (1) the main driver to R&D outsourcing is the need to achieve local responsiveness; (2) although R&D outsourcing is becoming more strategic, it is still quite limited to developed countries, especially to firms’ domestic markets; and (3) R&D outsourcing to non-OECD countries is still predominantly motivated by lower labor costs.
Consumers' Perceptions of Offshored Service Providers: Cross-over or Cross-out?
Shashi Matta, Ohio State University
Valerie Folkes, University of Southern California
matta_6@fisher.osu.edu, folkes@marshall.usc.edu
Abstract: The pros and cons of outsourcing and off-shoring have been intensely debated from a strategic perspective, and the topic is relevant to both domestic and international business. Whereas economists, policy makers, and politicians have argued the pros and cons of this increasing business trend, this discussion has been at a macro level. There is little research at a micro level that investigates consumers’ perspective of outsourced or off-shored service. We believe it is important to answer questions such as: Do a firm’s consumers evaluate
service differently when they perceive a service delivery person as being outsourced or off-shored? How does this evaluation of the offshored service employee affect consumers' evaluation of the service firm/brand? In this research, we present three studies, which investigate these questions. Using laboratory and field experiments, we examine consumers’ perceptions of off-shored customer service and how those perceptions affect their evaluation of the service delivered and of the service firm.
SESSION 3.2: Technology Sourcing and Organizational Factores
Is There a Trend Towards Global Value Chain Specialization? An examination of cross-border sales of US foreign affiliates
Sjoerd Beugelsdijk, Nijmegen School of Management
Torben Pedersen and Bent Petersen, Copenhagen Business School
s.beugelsdijk@fm.ru.nl, tp.smg@cbs.dk, bp.smg@cbs.dk
Abstract: In this paper we discuss and empirically test the assertion that over the last two decades multinational enterprises’ (MNEs’) configuration of value-adding activities has shifted from a sparse and simple (host-home) international division of labor among the foreign affiliates to a more specialized and ‘advanced’ global value chain configuration in which MNEs locate fine-sliced parts of the value chain at the most efficient locations. Using data on trade flows of U.S. affiliates in 56 host countries between 1983 and 2003 we find some indications of a trend in the direction of global value chain specialization. In particular among US affiliates in developing countries the proportion of host-host, intra-firm trade has increased significantly during the observed period of time. Conversely, the proportion of host-home and inter-firm trade has diminished. We interpret this as indicating both value chain disaggregation (vertical specialization) and MNEs’ systematic exploitation of factor cost differentials across countries. We also find that the absolute levels of all types of trade flows have increased. Hence, it is the relative, and not the absolute, changes in the trade flow patterns of US affiliates that gives credibility to the global value chain assertion.
Keywords: FDI, US affiliate sales, globalization, value chain specialization.
Does 'The China Option' Influence Subsidiary Technology Sourcing Strategy?
Brent B. Allred and K. Scott Swan, The College of William & Mary
scott.swan@mason.wm.edu, allred@mason.wm.edu
Abstract: We draw on transaction cost economics and the technology innovation management literature to advance a contextual model of the link between the perceived influence of China on technology strategy and MNC subsidiary sourcing strategy. In particular, we hypothesize that the relationship between a perceived influence of China on technology strategy and MNC subsidiary process technology sourcing strategy is moderated by the innovation context. Here, we consider the innovation context to be externally represented by the appropriability regime and dominant design, while internally it is measured by the subsidiary’s level of complementary assets. We test our predictions on a multi-industry sample of 111 MNC subsidiaries from the Association of Equipment Manufacturers. We find support for the moderating influence of the innovation contexts of appropriability regime and complementary assets.
The Determinants of the Degree of Externalization of Clinical Trials and its Geographical Coverage: In-House versus Outsourcing versus Offshoring
Farok Contractor and Pooja Thakur, Rutgers University
fjcontractor@embarqmail.com, thakur@pegasus.rutgers.edu
Abstract: This research examines the spread of core activities of the pharmaceutical industry and the determinants of this spread. Specifically, we look at what factors influence the decision to relocate the clinical trials both organizationally (in house versus external vendors) and geographically (trials conducted in home nation versus trials in foreign countries). The research adopts a multi-level approach and focus on determinants at the country, firm and project level. The determinants are drawn from various international business theories such as Eclectic paradigm, neo-institutional theory, organization ecology, resource based view, and the evolutionary approach.
Keywords: Outsourcing, Offshoring, Pharmaceutical, Clinical Trials
SESSION 4.2: Global Sourcing of Knowledge and Talent
Offshoring and the Global Sourcing of Talent: Understanding the New Frontier of Internationalization
Niccolò Pisani and Joan Enric Ricart, IESE Business School
npisani@iese.edu, ricart@iese.edu
Abstract: Companies in high-cost developed economies are increasingly migrating white-collar activities at offshore low-wage locations. Recent researches confirm that firms are progressively sourcing abroad higher-skilled technical, engineering and scientific jobs. The purpose of this study is to investigate why and how companies currently offshore product development activities. We develop hypotheses on the motivations behind this higher-skilled offshoring and on the peculiar internationalization process followed. We test them on a fine-grained database containing 262 offshore implementations initiated by 71 Western European companies. The results obtained confirm that the actual process of product development offshoring presents remarkable theoretical novelties that differentiate it from previous waves of internationalization.
Keywords: Offshoring; global sourcing; product development; internationalization process
Outsourcing Knowledge-Based Services: The Dynamics of Capabilities and Governance
Kyle J. Mayer, University of Southern California
Deepak Somaya, University of Maryland
Ian O. Williamson, Melbourne Business School
kmayer@marshall.usc.edu, dsomaya@rhsmith.umd.edu, i.williamson@mbs.edu
Abstract: This paper takes a fresh look at the question of when firms outsource knowledge-based activities to external suppliers. While previous studies have proposed and tested governance and capability-based explanations for outsourcing, we advance the literature by examining how capabilities and governance costs change dynamically, particularly in knowledge-based work. We hypothesize that governance costs and domain-specific knowledge capabilities are path dependent, and furthermore that specialized external suppliers may accumulate systematic expertise-based capability advantages over internal production. We find support for these hypotheses in the patent legal industry; however, our work has implications for knowledge-based services more broadly.
Does International Outsourcing Add Value? Evidence on Flexibility
Jongmoo Jay Choi and Xiaotian Tina Zhang, Temple University
jjchoi@temple.edu, xiaotian@temple.edu
Abstract: Existing work in management shows the potential applicability of transaction cost and resource theories for outsourcing using survey data. This paper advances a notion that outsourcing can be viewed as a real switching option, and that the primary source of gains stem from flexibility accrued by outsourcing. Empirical work based on event data of U.S. outsourcing firms indeed confirm that the market valuation of outsourcing is significant and positive and is related to flexibility gains. However, the value gains are economically more significant for offshore outsourcing than domestic outsourcing. In addition, the realization of valuation gains from outsourcing depends on the efficacy of the firm’s corporate governance. Preliminary evidence indicates that the short- and long-term post-event performance of U.S. outsourcing firms also depends on switching cost and related variables.
Keywords: Offshore outsourcing, Real options, Flexibility, Corporate governance
SESSION 5.1: Panel 2
Outsourcing and Offshoring Research in Europe
Michael J. Mol, University of Reading and London Business School
Torben Pedersen, Copenhagen Business School
Niccolo Pisani, IESE Business School
SESSION 6.1: Implementation Issues in Global Sourcing
Overcoming Inertia: Drivers of the Outsourcing Process
Michael Mol, University of Reading
Masaaki Kotabe, Temple University
mmol@london.edu, mkotabe@.temple.edu
Abstract: Outsourcing inertia, when companies are slow to adapt to changing circumstances that accommodate higher outsourcing levels, may produce negative effects on a firm’s performance. We show that rapid increases in outsourcing (i.e. outsourcing processes) occur where such inertia is present. We investigate the outsourcing process further through follow-up interviews, which suggest that outsourcing processes are triggered by one of five drivers, managerial initiative, hierarchy, imitation, outsider advice, and knowledge sources. We tie these drivers to various theories in the literature and suggest ways of testing their importance.
The Sustainability of Offshore Outsourcing Relationships:
The Role of Contracts and Client-Specific Investments
Arie Lewin and Stephan Manning, Duke University
Marc Schurch, University of St. Gallen
AYL3@duke.edu, stephan.manning@duke.edu, marc.schuerch@unisg.ch
Abstract: Aligning interests and negotiating client-specific investments are some of the instrumentalities that are being used by companies and outsourcers to lower agency costs in third party outsourcing relationships and to consequently increase the probability of contract renewals and offshore outsourcing success. In line with agency theory, this paper empirically tests the effect of different governance mechanisms, such as contracting and client-specific investment, on offshore outsourcing success in general and the sustainability of outsourcing relationships in particular. Agency theory is primarily concerned with situations where ownership and control are separated. It is frequently applied in the literature on the relationship between headquarters and subsidiaries (Roth & O’Donnell 1996) as well as on outsourcing relationships in general. Therefore, agency theory may be particularly applicable in the context of offshore outsourcing relationships where the problem of agency costs is expected to be highly relevant. We identify several key performance indicators in offshore outsourcing relationships: cost savings, time to achieve target service levels and renewal rate of contracts. As suggested by Ariño (2003), in this study we do not use aggregate financial performance measures as indicators of success, but we include measures indicating the strength of a client-service provider relationship. High rate of deal renewal is associated with longer lasting client – service provider relationships, which can be regarded as a ‘non-financial’ success factor. To examine how governance mechanisms impact offshore outsourcing success, we measure the effect of contract specificity and client-specific investment in infrastructure, software, and training on cost savings, time to achieve target service levels and deal renewal rate. In addition, we control for the type of tasks being outsourced, in particular commoditization, standardization and complexity, and service provider features, such as scale, scope and experience, as determinants of successful outsourcing relationships. The data used in this study is based on a comprehensive survey of offshore service providers, conducted by the Offshoring Research Network (ORN) and from the annual ORN corporate (buyer side) survey. Earlier findings from the ORN corporate survey suggest that loss of managerial control is one of the major offshoring challenges facing client companies. The findings of this study suggest that detailed contracts, involvement in staff training, and co-investment in software and technical infrastructure at the outsourcer can be key instruments in managing this challenge. Findings from this study may contribute to recent research on the governance of offshore outsourcing relationships. The discussion of the empirical results also highlights limitations of agency theory in explaining outsourcing performance.
Keywords: Offshore Outsourcing, Service Provider Relationship, Agency Theory, Contracting
Achieving Coordination and Synergies in Integrated Network Structures:
The Case of Hybrid Purchasing Organizations
Gerhard Trautmann, Evi Hartmann and Lydia Bals, EBS European Business School
trautmann@supplyinstitute.org, hartmann@supplyinstitute.org, bals@supplyinstitute.org
Abstract: When implementing global sourcing by means of a hybrid purchasing organization, one of the key challenges is to distinguish between categories that should be integrated across sites and those remaining under the authority of each purchasing location. The aim of the paper is to present a purchasing portfolio model that provides a comprehensive view of relevant global synergy dimensions, thereby guiding purchasing managers through this challenging selection process. Based on a substantial literature review, incorporating ideas from information processing theory, organizational buying behavior (OBB) and transaction cost economics, an academically grounded purchasing portfolio model is developed and its application exemplified based on one in-depth case study. Our findings indicate that the portfolio approach seems to be highly valuable for supporting companies in their efforts towards implementing global sourcing. With this paper, the current literature is complemented by not only addressing category selection criteria for exploiting economies of scale, but also for economies of information and learning as well as for economies of process.
SESSION 6.2: IT Offshoring
Offshoring Propensity in Information Technology: The Interaction of Firm Imitative Behavior
and Host Country Capacity
Naveen Kumar Jain and Sumit K. Kundu, Florida International University
Fred A. Niederman, Saint Louis University
njain001@fiu.edu, kundus@fiu.edu, niederfa@slu.edu
Abstract: This paper examines the dynamics of the offshoring of information technology (IT) service work. It considers this important emerging phenomenon from multiple lenses, especially those of international business theories. Research propositions are developed based on the perspectives of corporate and government strategy and the dynamic interactions between firm and state. Additional questions not addressed by received theories are suggested as questions for future research.
Key Words: Offshoring, Information Technology, Firm and Country level analysis.
Offshoring of Information-intensive Services: Structural Breaks
in Industry Life Cycles
Eugene D. Hahn, Salisbury University
Kraiwinee Bunyaratavej, Wesley College
edhahn@salisbury.edu, bunyarkr@wesley.edu
Abstract: The emergence of widespread offshoring of information-intensive services is arguably one of the more impactful phenomena to transform business in the last ten years. A growing body of research has examined the firm-level drivers and location factors (i.e., the why’s and where’s) of services offshoring. However, little empirical research has examined the maturation sequencing (or when’s) of services offshoring. Adopting industry life cycle theory as a framework, the key research questions examined in the paper are: when do different categories of offshoring services provision change from being emergent sectors to more mature ones, and how does the timing of this sequence relate to the type of service offshored. Using a database of 1420 offshore services FDI projects, we find that the value-add as well as the information sensitivity of the service category are related to when the service categories progress through the industry life cycle. Implications for future waves of service offshoring are discussed.
Keywords: Services offshore outsourcing, structural breaks, life cycle theory, empirical, Bayesian methods.
A Learning Perspective on the Offshoring of Advanced Services
Peter D. Ørberg Jensen, Copenhagen Business School
Abstract: Based on longitudinal case studies of offshoring of advanced IT and engineering services from Danish firms to Indian firms, this paper explores organizational learning effects that occur over time in both home and host firms. The findings are consistent with the theoretical view that advanced services offshoring must be understood as a dynamic phenomenon which both home and host firms use as an instrument for strategic business development and organizational change. The study shows that when offshoring partnerships mature and firms gain experience, the learning effects in both home and host firms evolve over time and differ in many cases from their initial objectives and expectations. In some of the Danish firms engaging in offshoring even ignites a process of strategic transformation. Both Danish and Indian firms use the input from their offshoring partnership to upgrade their organizations and business processes.
Keywords: Services offshoring, global integration, organizational learning, knowledge transfer, business strategy.
SESSION 7.1: Offshoring in the Indian Context
The Effects of Internal Resources and Partnership Quality on Firm Performance:
An Examination of Indian BPO Providers
Somnath Lahiri, Illinois State University
Ben L. Kedia, The University of Memphis
slahiri@ilstu.edu , bkedia@memphis.edu
Abstract: Firms from developed nations are increasingly resorting to business process outsourcing (BPO) as part of their global sourcing strategy. Although BPO is a growing practice, there has been limited empirical attention in understanding the phenomenon, particularly from the perspective of provider firms that execute important business processes for their overseas clients. In this paper we focus on the resources and capabilities that are utilized by providers in fulfilling their clients’ sourcing needs. Using resource-based view as theoretical foundation, we argue that providers’ human capital, organizational capital, management capability, and partnership quality are crucial assets that are deemed valuable by the clients and are utilized by the providers in attaining higher performance. Using a sample of Indian BPO providers, we empirically test three models (direct, mediating and moderating) to understand how these assets impact firm level performance. Results show that resources and capabilities relate to performance in varying measures and that partnership quality has partial mediating and moderating effects on these relationships. We conclude by discussing theoretical and practical implications of the study and highlighting avenues of future inquiry.
Keywords: Global Sourcing; Business Process Outsourcing, Resources; Partnership quality; India.
Professional Associations in a Newly Emerging Sector of a Developing Economy: A Case Study of the NASSCOM Effect on the Indian Offshoring Industry
Nir Kshetri, University of North Carolina at Greensboro
Nikhilesh Dholakia, University of Rhode Island
nbkshetr@uncg.edu, nik@uri.edu
Abstract: As important sources that shape institutional structures in an economy, professional associations play significant roles in bringing and legitimating institutional changes. This paper examines the roles of professional associations’ impacts on institutions associated with a nascent and formative sector of a developing economy. In empirical terms, the paper offers an in-depth case study of India’s National Association of Software and Services Companies (NASSCOM) on institutional changes related to the offshoring industry. The NASSCOM case shows that under appropriate conditions, professional associations represent an alternative to the state in shaping the industry landscape.
Keywords: Offshoring industry, professional associations, NASSCOM, national elite, India
Strategic Positioning for Indian BPO-ITeS Offshoring Companies
Arun Kumar Jain, Heilbronn Business School
Abstract: The paper begins by noting the challenges facing this industry in India in the current scenario. A snapshot of industry throws light upon the size of industry and nature of businesses within it. Findings of study conducted across several representative Indian companies and their respective competitive strategies are presented in the form of strategic groups. The second part of the study combines an exploration of possible industry trends in coming years with an effort to get a global perspective of the composition and dynamics of the industry. The major trends identified are presented with arguments in their support. The conclusion of this part of the study is presented in form of a model that shows how the industry has evolved in the past and how a paradigm shift will occur in near future which will change the very nature of the industry and operating conditions for Indian software and services companies. Having analyzed the BPO-ITeS industry at local and global levels, the paper proceeds develop an appreciation on how Indian companies have positioned themselves at present though the use of strategic maps. To get a global perspective, key players -the so-called ‘shapers’-in global IT industry were studied. Information about Indian and global IT industry was mined and opinions sought from industry practitioners. The strategic insights arrived at were after generating several options and critically evaluating each one. The criteria for choosing a particular strategy revolved around the feasibility and practicality of implementing the strategy and the ability of Indian companies to execute a recommended strategy. Our focus for every suggested strategic initiative is its practicality. The study concludes by charting a path for survival and success of Indian companies in face of increasing competition, the basis of which is a realistic assessment of their strengths and a recommendation of first moving up the complexity ladder in services along with forays into niche areas for products. It also concludes that companies have to move beyond the mindsets of ‘outsourcing’ and ‘offshoring’, and seamlessly integrate themselves with the clients irrespective of the location. This calls for a new way of thinking and doing business.
SESSION 8.1: Panel 3
Location and the Control of Knowledge Resources
Ulf Andersson, Uppsala University
Peter Buckley, University of Leeds
Martin Carter, University of Leeds
Henrik Dellestrand, Uppsala University
Ram Mudambi, Temple University
Tim Swift, Temple University