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Fine slicing of the value chain and offshoring of essential activities: empirical evidence from European multinationals

2014

The offshoring of more advanced activities is increasing and a debate about the limits of offshoring has emerged. Companies are fine-slicing their value chains, and moving beyond the offshoring of peripheral and non-core activities to the offshoring of advanced and essential activities that are closer to their core (e.g. research, design and product development). The challenge is to understand the limits of offshoring and the most appropriate modes of offshoring. The purpose of this paper is to analyze what activities are offshorable and how best to govern offshored activities. We argue that companies are redefining their core activities and in this process, some essential activities previo…

Department of ManagementEconomics and EconometricsHF5001-6182Process (engineering)Offshore outsourcingFaculty of EconomicsOutsourcingOffshoringBusinessValue chainEmpirical evidenceIndustrial organizationOffshoringbusiness.industrymultinational firmsglobal sourcingcore activitiesOffshoring; value chainCommerceMultinational corporationoutsourcingUniversity of ValenciaNew product developmentBusiness Management and Accounting (miscellaneous)value chaininternational strategiesbusiness
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