AIB 2012 Conference Proceedings - Academy of International ...

SUNDAY
Panelists:
Toshiya Ozaki, Rikkyo University
Tazeeb Rajwani, Cranfield University
Thomas Lawton, EMLYON Business School
Chengang Wang, Bradford University
Fernando Fastoso, Bradford University
George O. White III, Old Dominion University
Adrian Kay, Australian National University
Robert Ackrill, Nottingham Trent University
Johan Lindeque, Amsterdam Business School
Stephen Kobrin, University of Pennsylvania
This panel explores both the current state of corporate political activity in sustaining, upgrading and utilizing of
international market institutions, and the theoretical frameworks that account for such non-market strategy.
The business community, especially of the US but also of major developed economies, played an important role
in helping policy makers to design and develop the postwar international economic system. This liberalized
international system, in turn, has led to internal adaptations in the political economy of emerging markets.
These market institutions, however, increasingly show strains. How are firms of the early 21st century
anticipating the growing challenges of growing void in international economic governance Who are main
corporate players, what are their interests, and what kinds of strategies are they pursuing In what ways, do
the current institutions influence the behavior of MNEs and, in turn, how do these firms engage with
governments in shaping the institutional environment of the early 21st century And what theoretical
frameworks best analyze non-market strategy that account for their responses to institutional challenges The
panel should provide a one stop shop to cover these timely and critical questions surrounding the sustainability
of international business in the 21st century. (For more information, please contact: Toshiya Ozaki, Rikkyo
University, Japan: ozakit@rikkyo.ac.jp)
Session: 1.5.4 - Competitive
Track: 12 - Value Creation and Work
Reconfiguring the Value Chain: Offshoring
Presented On: July 1, 2012 - 16:15-17:30
Chair: Anna Dubiel, WHU
The Impact of Location Choice and Governance Model on the Offshoring Performance
Lucia Piscitello, Politecnico di Milano
Stefano Elia, Politecnico di Milano
Davide Luzzini, Politecnico di Milano
Federico Caniato, Politecnico di Milano
Stefano Ronchi, Politecnico di Milano
The present paper deals with the performance implications of the offshoring of service activities. Offshoring is
intended as delocalization of business services in foreign countries that may occur either through a whollyowned
company (Captive Offshoring) or by outsourcing the service activity (Offshore Outsourcing). We
investigate the relationship between distinctive location specific characteristics of the host countries (cost of
labor, resource availability, cultural proximity, and the presence of local interests) and performance of the
offshoring firm. We extend the literature by investigating both the direct effect of the governance model and its
moderating role of the locations specific characteristics on performance. Our results show that the direct effect
arises only when considering operational performance, while the moderating effect is more specific of strategic
AIB 2012 Conference Proceedings
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