Session Details: Session 1010

Creating Advantage through Offshoring and Global Disintegration of the Value Chain

Track E

Date: Saturday, December 13, 2008


Time: 13:30 – 14:45


Room: Lecture Theatre 5

Session Chair:
Susan Helper, Case Western Reserve University

Title: Global Outsourcing Model


  • Hans Solli-Sæther, Aalesund University College
  • Petter Gottschalk, Norwegian School of Management

The traditional outsourcing model implies a one-to-one relationship between client and supplier. As global outsourcing grows, several global service suppliers have established service centers or delivery centers overseas or in low cost countries. This research identifies key characteristics of a global outsourcing model and discusses how this model differs from a traditional one with respect to control mechanisms and trust.

Title: Global Strategies in the Legal Marketplace


  • Mari Sako, Oxford University
  • Gaurav Singh, NASSCOM

Trade liberalization and ICT have facilitated an unbundling of global value chains. Disintegration of a value chain gives rise to the creation of new markets with new opportunities for capturing value. In services, India’s entrepreneurial firms pioneered the global delivery model, and are delivering increasingly complex and knowledge-intensive services. In so doing, what alternative strategies are being pursued by providers to profit from the global value chain? In what ways are the sources of competitive advantage changing as they move from low end to high end work, potentially changing the existing industry structure along the way? This paper examines these questions by focusing on the offshoring and outsourcing of one notable type of professionalized knowledge work, namely legal services.

Title: Off-Shoring and Value Creating Achitechture: The Case of Automotive Product Development


  • Susan Helper, Case Western Reserve University

Off-shoring of business services has become an important issue. We present a detailed case study of how several firms in an automotive supply chain design windows and windshields, a process in which work is transferred between the US and India on a daily basis. We conclude that this process is more successful when managers consider the impact of off-shoring not only on the skills available to perform individual steps in a process, but also on the relations among the steps. This idea, that choices about proximity and governance affect product characteristics, challenges the assumption common in management theories that product characteristics are determined first, and then the appropriate organization is designed around them.

Title: Why Are Companies Offshoring Innovation to India? Longitudinal Micro Data Analys From ORN Project


  • Arie Lewin, Duke University
  • Silvia Massini, University of Manchester

The paper analyzes 3 waves of ORN surveys (2005, 2006, 2007) which survey companies offshoring of discreet functions, processes or subprocesses. for this paper the offshored functions relate only to innovation activities such as product design, R&D, engineering services, software development etc. Foe offshored activities the data includes measures for strategic intent (e.g. increase speed to market, redce costs etc), location were offshored (country and city) year launched as well as various performance outcomes. The data represents the largest data base of actual fiem practices (decisons) involving offshoring of innovation. The analyses integrate various macro variables such as the supplu of science and engineering talent in the US. Since India and China account for 70% of all offshored innovation projects the analysis also include a comparison of India and China. an important set of findings include description of nw organizational forms for managing globalization of innovation.

All Sessions in Track E...

Sat: 11:15 – 12:30
Session 1006: Emerging Economies: The Dynamic Influence of the Institutional Environment on Firm Strategies
Sat: 13:30 – 14:45
Session 1010: Creating Advantage through Offshoring and Global Disintegration of the Value Chain
Sun: 13:30 – 14:45
Session 1014: Competition and Strategy
Sun: 15:00 – 16:15
Session 1034: The Future of Off-Shoring Services

Strategic Management Society

India Initiative

2008 Special Conference

2010 Bangalore Workshop

2011 Calcutta Workshop