1 / 11

Olivier Bertrand (SKEMA Business School)

Olivier Bertrand (SKEMA Business School). What goes around comes around: Effects of offshore outsourcing on the export performance of firms. T. Friedman: “What goes around…”. New York Times, 2004.

kayla
Télécharger la présentation

Olivier Bertrand (SKEMA Business School)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Olivier Bertrand (SKEMA Business School) What goes around comes around: Effects of offshore outsourcing on the export performance of firms

  2. T. Friedman: “What goes around…” New York Times, 2004 • “Yes, I want to be able to huff and puff about complex issues - like outsourcing of jobs to India - without any reference to reality. Unfortunately, in this life, I'm stuck in the body of a reporter/columnist. So when I came to the 24/7 Customer call center in Bangalore […] I was prepared to denounce the whole thing. […] Well, he (the founder of the company) answered patiently, ''look around this office.'' All the computers are from Compaq. The basic software is from Microsoft […] The air-conditioning is by Carrier, and even the bottled water is by Coke […] This explains why, although the U.S. has lost some service jobs to India, total exports from U.S. companies to India have grown from $2.5 billion in 1990 to $4.1 billion in 2002. What goes around comes around, and also benefits Americans.”

  3. Introduction (1) • The context • The objective of the paper • Data and definition of offshore outsourcing

  4. Introduction (2) • Main findings • Contribution of the paper: • Mol, Van Tulderc and Beije (2005) • Di Gregorio, Musteen and Thomas (2009)

  5. Background (1) • Export gains from offshore outsourcing: • Hypothesis 1: Offshore outsourcing is positively related to export performance. • Hypothesis 2: Ceteris paribus, the positive effects ofoffshore outsourcing on export performance are higher in export markets where firms import intermediate goods.

  6. Background (2) • Resources and capabilities of MNEs to outsource abroad: • Hypothesis 3:The relationship between offshore outsourcing and export performance is positively moderated by the size of the firm. • Hypothesis 4: Ceteris paribus, the positive effects ofoffshore outsourcing on export performance are higher when firms also import intermediate products within the MNE group. • Hypothesis 5: The relationship between offshore outsourcing and export performance is positively moderated by the export experience of the firm.

  7. Data and methods (1) • Firm-level data: • Echanges Internationaux Intra Groupe (EIIG) • Enquête Annuelle d’Entreprise (EAE) • Dependant variable: • Export sales (firm/country level) • (Export intensity)

  8. Data and methods (2) • Independent variables: • Outsourcing • Outsourcing * Bilateral Trade • Outsourcing * Size • Outsourcing * Intra-Firm Sourcing • Outsourcing * Export Experience • Control variables: • Size, Unit labor cost, Export experience • GDP, Geographic and cultural distance (Legal environment) • Fixed sector dummies

  9. Data and methods (3) • Excess of zeros: log (Export+1) • Cross-section analysis: • Ordinary Least Squares (OLS) model • Two-stage least squares (2SLS) model • Further robustness check • VIF test + F test

  10. Findings • Empirical support for our 5 hypotheses • Good overall fit of our empirical model

  11. Conclusion • Contribution to the field of strategy and IB • Potential implication for: • policy makers • practitioners

More Related