The Motivation for Investment in Offshore Plants: The Case of the U.S. Electronics Industry

Moxon, Richard W.

doi:10.1057/palgrave.jibs.8490767

Cited by 54 publications

(21 citation statements)

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“…Their assumption was tested and confirmed by Moxon (1975) who applied empirical data to show that offshoring was, at the time, primarily motivated by the use of inexpensive labor in newly-industrialized countries. More recently, authors have repeatedly highlighted the importance of cost advantage as a key driver for and as a determinant behind offshoring.…”

Section: Determinants Of Offshoringmentioning

confidence: 95%

“…The offshoring surge was induced by the establishment of tax-exempted and tariff-free export production zones in a number of developing countries in tandem with the US government's introduction of tariff provisions permitting duty-free re-entry to the United States of US-made components sent abroad for further processing or assembly (Moxon, 1975). Examples of the offshoring debate include classic contributions such as Stopford and Wells (1972), who pointed out that offshoring is primarily driven and motivated by the use of inexpensive labour particularly in the newly-industrialized countries for export of finished products to other…”

Section: Determinants Of Offshoringmentioning

confidence: 99%

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Whether and What to Offshore?

Jensen

Pedersen

2007

SSRN Journal

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In this article, we explore the idea that offshoring of services and technical work should be regarded as a dynamic process that evolves over time. determinants play a role when firms first engage in offshoring, while rather different determinants matter for the subsequent process of offshoring of advanced activities. Although the model portrays a simplified expression of the offshoring process with two stages, the findings underpin our view that a process perspective on offshoring is a useful analytical framework.

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Section: Determinants Of Offshoringmentioning

confidence: 95%

Section: Determinants Of Offshoringmentioning

confidence: 99%

Whether and What to Offshore?

Jensen

Pedersen

2007

SSRN Journal

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“…Thus, offshoring actually is not a new phenomenon (e.g. offshore plants, Moxon 1975). In the literature, however, the term "outsourcing" is sometimes inappropriately used for "offshore," and the types of offshore have not been clearly delineated.…”

Section: Offshore Operationsmentioning

confidence: 99%

Offshore operations capabilities: an exploratory study

Tondolo

Kaynak²,

Souza

et al. 2011

JOSCM

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AbstrAct:To explore how companies develop capabilities for managing offshore operations, this study examines the offshore operations of three companies in Brazil, Denmark, and Germany. The research results provide valuable information on the types of offshore operations implemented by the companies, the strategic role of offshore operations, barriers to implementing offshore operations, capabilities developed by companies for implementing offshore operations, and the role of dynamic capabilities elements (paths, positions, and processes) in the development of capabilities for managing offshore operations.

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“…although the studies differ in their terminology (e.g., offshore sourcing, offshore plants, export subsidiary), they share the common aim to understand exactly why companies in advanced economies source components and finished products for their home markets from offshore plants. these investigations largely rely on secondary import data available under tariff items 806.30 and 807.00, which permit the duty-free entry of U.s. components and finished goods from foreign subsidiaries (e.g., Moxon 1975;Kirkpatrick and Yamin 1981;lee 1986). among those determinants most frequently cited are capital-to-labor ratio, R&D intensity, transport costs, product life cycle, entry barriers, foreign experience, and firm size.…”

Section: Responses To Foreign Competitionmentioning

confidence: 99%

Responses of Advanced Country MNEs to Low-cost Country Imports in Their Home Markets

Kaufmann

Körte

2010

Manag Int Rev

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0There has been little exploration of the competition arising from low-cost countries′ imports to the home markets of multinational enterprises (MNes) headquartered in developed countries. 0 this study presents theoretical and empirical analyses of the level of future MNe activities in LCCs due to the rising prevalence of LCC imports in the MNEs′ home markets. Building upon oligopolistic parallel behavior theory, we analyze the impact of lcc competition intensity and lcc product quality. 0 We test the model using data collected from a top management survey of 423 U.s. and German manufacturing firms. 0 the intensity of competition from lccs and the quality of products imported from lccs significantly explain MNEs′ subsequent responses to that competition. 0 cross-country comparisons show that while lcc product quality is important in both samples, the intensity of competition from LCCs is significant for MNEs′ future activities in lccs only in the U.s. sample. 0 a stronger prior orientation toward lccs and low logistics costs also lead to higher levels of future MNe activities in lccs, while technological progress does not.

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The Motivation for Investment in Offshore Plants: The Case of the U.S. Electronics Industry

Cited by 54 publications

References 0 publications

Whether and What to Offshore?

Whether and What to Offshore?

Offshore operations capabilities: an exploratory study

Responses of Advanced Country MNEs to Low-cost Country Imports in Their Home Markets

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