Outsourcing: A Case of Shared Mental Models in Conflict

Abstract

This article appears in Kyklos as part of a special symposium edited by Ravi K. Roy and Arthur T. Denzau that has been assembled to reflect on the contribution of Arthur T. Denzau and Douglass C. North's seminal work on "Shared Mental Models: Ideologies and institutions."

Drivers of R&D greenfield investment projects in the communications, software and IT service industries in developing countries

“…Utilizing these advantages, many jobs in digital industries have been outsourced to developing countries, such as to China, India, Mexico and Viet Nam (Sethi et al, 2021;UNCTAD 2005a). For example, Accenture and IBM are among digital companies outsourcing their R&D to India (Hira, 2020). Over time, growing market-driven pressure for customized solutions has led leading digital MNEs such as Adobe Systems in India (Asakawa and Som, 2008), Google (Komoda et al, 2021) and Motorola (Qi et al, 2014) expand their R&D-related investment projects in developing countries towards more knowledge-seeking activities to meet local demand (UNCTAD, 2005a;Zhao et al, 2021).…”

Shared Mental Models: Insights and Perspectives on Ideologies and Institutions

“…Hira examines the ways in which SMM can help us explain the divergence between how elites and ordinary people perceive the impacts and importance of outsourcing. In so doing, Hira explores the divergent shared mental models surrounding the outsourcing debate in the U.S. and how those models have been shaping the choices of policymakers (see Hira 2020).…”

Institutional Change and the Importance of Understanding Shared Mental Models

“…In Sunstein (2000), polarization in groups can be explained by individuals in collective conversations paying special attention to how speaking up, especially to disagree with the status quo, might harm their reputations. Hira (2020) suggests polarization between experts and the public regarding outsourcing.…”