What is Offshoring Management Capability and How Do Organizations Develop It? A Study of Dutch IT Service Providers
Mihalache, Mashiho Mihalache, Oli R
Mihalache, Mashiho
Mihalache, Oli R
Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2020-02
Journal
Management International Review
Book
Publication Volume
60
Publication Issue
1
Publication Begin page
37
Publication End page
67
Publication Number of pages
Collections
Abstract
This study develops a capability perspective of offshoring. While previous research shows that experience affects future offshoring decisions, we still lack an understanding of what offshoring management capability is and how organizations develop it. Using data on five Dutch IT service providers, we find that offshoring management capability is multidimensional as it comprises four dimensions: coordination competency, relationship development, relationship design, and organizational identification. Furthermore, we uncover the process through which organizations can actively develop an offshoring management capability. We find that there are four elements in this learning loop: an offshoring growth mentality, adaptive monitoring of offshoring performance, offshoring reflexivity, and mechanisms for storing and disseminating offshoring best practice. Therefore, our capability perspective of offshoring provides a comprehensive conceptualization of offshoring management capability as a multidimensional construct and uncovers the process through which organizations develop it.
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Keywords
35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour