TY - JOUR
T1 - Offshore outsourcing and firm performance
T2 - Moderating effects of size, growth and slack resources
AU - Munjal, Surender
AU - Requejo, Ignacio
AU - Kundu, Sumit K.
PY - 2019/10
Y1 - 2019/10
N2 - This study explores the impact of foreign technology and professional services from outsourcing on firm financial performance. To this aim, we use a sample of 1710 Indian firms over a time period of 13 years, from 2001 to 2013. The empirical evidence obtained shows that the positive effects of technological knowledge and professional services on performance are moderated by firm size, business growth and slack resources. In particular, the benefits of outsourcing in terms of higher profitability are more pronounced for small than for large firms, especially when small firms have higher growth rates and financial slack. The work contributes to the resource based view and the internalization theory of the firm. Our results suggest that firms from an emerging country such as India may have alternative motives for offshore outsourcing different from the reasons of firms from advanced economies. Several managerial implications are also derived from our findings.
AB - This study explores the impact of foreign technology and professional services from outsourcing on firm financial performance. To this aim, we use a sample of 1710 Indian firms over a time period of 13 years, from 2001 to 2013. The empirical evidence obtained shows that the positive effects of technological knowledge and professional services on performance are moderated by firm size, business growth and slack resources. In particular, the benefits of outsourcing in terms of higher profitability are more pronounced for small than for large firms, especially when small firms have higher growth rates and financial slack. The work contributes to the resource based view and the internalization theory of the firm. Our results suggest that firms from an emerging country such as India may have alternative motives for offshore outsourcing different from the reasons of firms from advanced economies. Several managerial implications are also derived from our findings.
KW - Business growth
KW - Firm size
KW - Offshore outsourcing
KW - Performance
KW - Slack resources
UR - http://www.scopus.com/inward/record.url?scp=85040706272&partnerID=8YFLogxK
UR - https://www.sciencedirect.com/science/article/abs/pii/S0148296318300146?via%3Dihub
U2 - 10.1016/j.jbusres.2018.01.014
DO - 10.1016/j.jbusres.2018.01.014
M3 - Article
AN - SCOPUS:85040706272
SN - 0148-2963
VL - 103
SP - 484
EP - 494
JO - Journal of Business Research
JF - Journal of Business Research
ER -