What do you get from international sourcing : differences between manufacturing and services firms

Jaklič, Andreja (author), Ćirjaković, Jelena (author)

Rapid internationalization of services firms has recently become driven also by international sourcing (captive offshoring and offshore outsourcing). The rising extent of services sourcing, within industries and within firms, increased number of functional activities sourced and ever wider cross - national spreading (with the rising share of developing economies amongst hostand home economies) calls for better understanding of the ongoing structural change. We explore the effects international sourcing comparativelyand look for the differences of between services and manufacturing firms. The data set that links the recently conducted Eurostatsʼsurvey on international sourcing and detailed financial firm-level data, and enables exploring firm-level heterogeneity, different sourcing strategies and effects of international sourcing by applying matching methodology. Compared to manufacturing the drivers for international sourcing of services firms seem to be more long-term oriented and the strategies aim far beyond cost cutting and efficiency. Results suggest that services firms involved in international sourcing gained improvement in quality and technological learning resulting in employment growth and development, which was not the case for manufacturing firms driven primarily by cost cutting. Understanding these effects is vital also for manufacturing firms in the process of servitization.

• Language: English
• Work type: Not categorized
• Typology: 1.08 - Published Scientific Conference Contribution
• Organization: FDV - Faculty of Social Sciences
• Year: 2011
• Number of pages: brez pag.
• PID: 20.500.12556/RUL-41051
• UDC: 338(497.4)
• COBISS.SI-ID: 30992733
• Publication date in RUL: 10.07.2015