Offshore outsourcing and firm performance: Moderating effects of size, growth and slack resources

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 techn...

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Bibliographic Details
Main Authors: Kundu, S.K (Author), Munjal, S. (Author), Requejo, I. (Author)
Format: Article
Language:English
Published: Elsevier Inc. 2019
Subjects:
Online Access:View Fulltext in Publisher
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001 10.1016-j.jbusres.2018.01.014
008 220511s2019 CNT 000 0 und d
020 |a 01482963 (ISSN) 
245 1 0 |a Offshore outsourcing and firm performance: Moderating effects of size, growth and slack resources 
260 0 |b Elsevier Inc.  |c 2019 
856 |z View Fulltext in Publisher  |u https://doi.org/10.1016/j.jbusres.2018.01.014 
520 3 |a 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. © 2018 Elsevier Inc. 
650 0 4 |a Business growth 
650 0 4 |a Firm size 
650 0 4 |a Offshore outsourcing 
650 0 4 |a Performance 
650 0 4 |a Slack resources 
700 1 |a Kundu, S.K.  |e author 
700 1 |a Munjal, S.  |e author 
700 1 |a Requejo, I.  |e author 
773 |t Journal of Business Research