Uncovering the hidden costs of offshoring: The interplay of complexity, organizational design, and experience

• 成果类型: Article
• 署名作者: Larsen, Marcus M.; Manning, Stephan; Pedersen, Torben
• 署名单位: Copenhagen Business School; University of Massachusetts System; University of Massachusetts Boston; City St Georges, University of London
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2023
• 发表日期: 2013
• 页码: 533-552
• 关键词: hidden costs; Offshoring; complexity; estimation errors; Organizational design

摘要

This study investigates estimation errors due to hidden coststhe costs of implementation that are neglected in strategic decision-making processesin the context of services offshoring. Based on data from the Offshoring Research Network, we find that decision makers are more likely to make cost-estimation errors given increasing configuration and task complexity in captive offshoring and offshore outsourcing, respectively. Moreover, we show that experience and a strong orientation toward organizational design in the offshoring strategy reduce the cost-estimation errors that follow from complexity. Our findings contribute to research on the effectiveness of sourcing and global strategies by stressing the importance of organizational design and experience in dealing with increasing complexity. Copyright (c) 2012 John Wiley & Sons, Ltd.