Fine Slicing of the Value Chain and Offshoring of Essential Activities: Empirical Evidence From European Multinationals

Abstract

The offshoring of more advanced activities is increasing and a debate about the limits of offshoring has emerged. Companies are fine-slicing their value chains, and moving beyond the offshoring of peripheral and non-core activities to the offshoring of advanced and essential activities that are closer to their core (e.g. research, design and product development). The challenge is to understand the limits of offshoring and the most appropriate modes of offshoring. The purpose of this paper is to analyze what activities are offshorable and how best to govern offshored activities. We argue that companies are redefining their core activities and in this process, some essential activities previously viewed as core activities are being detached from the core, and they become more offshorable.

A Reverse Perspective on Global Value Chains: Implications from the Internationalization of Rising Emerging Market Firms

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Strategic technology management within global value systems

“…In the last decades the configuration of global value chains has evolved, and authors pointed out that activities cannot be divided into traditional ones like R&D, design, manufacturing, service, etc. The processes of activities have to be fine-sliced (Mudambi, Punck, 2016) to get implication about the organization systems and redefine the core and non-core activities to allocate more time and resources for the core activities (Linares-Navarro et. al., 2014, Mudambi, Punck, 2016, besides these core processes have to be monitored continuously (Buckley, 2011).…”

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