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Offshore outsourcing of business functions is widely practiced by firms in advanced economies. Although scholars have … concerns inadequate simultaneous attention to clients and providers - the key actors in offshore outsourcing. With an aim to … organizational factors that coevolve to enable engagement of clients and providers in offshore outsourcing. Our conceptualization …
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We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the...
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This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model … foreign suppliers, due to costly communication. Triggered by foreign countries' export supply shocks, firms start offshoring … net effect of offshoring on a firm’s domestic production networks depends on the relative strength of the three effects …
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