• Fine-slicing global value chains: A protection for proprietary content

      Gooris, Julien; Peeters, Carine (2014)
      This study shows that firms adjust the scope of activities entrusted to foreign services production units to adapt their knowledge and content protection strategy to the availability of strong legal protection or internal control mechanisms. We hypothesize and empirically confirm that, when the above mechanisms are not available, firms use the substitute protection mechanism of “fine-slicing” foreign value chain activities to exploit the complementarities that exist between tasks and reduce misappropriation hazard. We also find a positive moderating effect of firm country-specific experience and content value on the propensity to use the fine-slicing mechanism.
    • Fragmenting global business processes: A protection for proprietary information

      Gooris, Julien; Peeters, Carine (Journal of International Business Studies, 2016)
      This study shows that, when sourcing business services in foreign countries, the fragmentation of processes across production units acts as an operational-level adjustment variable for firms to adapt their information protection approach to the regulative environment of the host country they have selected and to the possibility to use internal controls over the activities performed abroad. We hypothesize that, when the above mechanisms are not available, firms are more likely to fragment processes across multiple foreign production units instead of collocating all process tasks in the same unit. Thanks to IT-enabled integration capabilities, firms can exploit the complementarities between the dispersed fragments of a process while reducing the misappropriation hazard of individual fragments. Empirical results and robustness tests are strongly congruent with these hypotheses. We find also that the propensity to turn to the process fragmentation protection mechanism increases with firm host-country-specific experience and with the alternative value of the proprietary information involved in the activity sourced abroad.
    • Home-host country distance in offshore governance choices

      Gooris, Julien; Peeters, Carine (Journal of International Management, 2014)
      This paper studies the effect of home–host country distance on the choice of governance mode in service offshoring. Using a Transaction Cost Economics approach, we explore the comparative costs of the hierarchical and contractual models to show that different dimensions of distance (geographic, cultural and institutional), because they generate different types of uncertainties, impact offshore governance choices in different ways. Empirical results confirm that, on the one hand, firms are more likely to respond to internal uncertainties resulting from geographic and cultural distance by leveraging the internal controls and collaboration mechanisms of a captive offshore service center. On the other hand, they tend to respond to external uncertainties resulting from institutional distance by limiting their foreign commitment and leveraging the resources and local experience of third party service providers. Finally, we find that the temporal distance component (time zone difference) of geographical dispersion between onshore and offshore countries plays a dominant role over the spatial distance component.