Home bitter home: How labor protection influences firm offshoring

Drawing on the home country literature, we argue that firms headquartered or located in countries with strong labor protection may face challenges in their domestic operations. These firms are likely to initiate offshoring to enhance operational efficiency. Building on this argument, we also examine...

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Main Authors: Weng, D., Peng, Mike
Format: Journal Article
Published: Pergamon 2018
Online Access:http://hdl.handle.net/20.500.11937/67617
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author Weng, D.
Peng, Mike
author_facet Weng, D.
Peng, Mike
author_sort Weng, D.
building Curtin Institutional Repository
collection Online Access
description Drawing on the home country literature, we argue that firms headquartered or located in countries with strong labor protection may face challenges in their domestic operations. These firms are likely to initiate offshoring to enhance operational efficiency. Building on this argument, we also examine the boundary conditions moderating this proposed effect including labor productivity and employee stock ownership. Results based on a sample of information technology firms operating within five developed countries during 1990–2010 provide support for these arguments. These findings suggest that offshoring can be a partial exit strategy for firms to address the institutional challenges in their home country.
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institution Curtin University Malaysia
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spelling curtin-20.500.11937-676172018-09-04T03:17:59Z Home bitter home: How labor protection influences firm offshoring Weng, D. Peng, Mike Drawing on the home country literature, we argue that firms headquartered or located in countries with strong labor protection may face challenges in their domestic operations. These firms are likely to initiate offshoring to enhance operational efficiency. Building on this argument, we also examine the boundary conditions moderating this proposed effect including labor productivity and employee stock ownership. Results based on a sample of information technology firms operating within five developed countries during 1990–2010 provide support for these arguments. These findings suggest that offshoring can be a partial exit strategy for firms to address the institutional challenges in their home country. 2018 Journal Article http://hdl.handle.net/20.500.11937/67617 10.1016/j.jwb.2018.03.007 Pergamon restricted
spellingShingle Weng, D.
Peng, Mike
Home bitter home: How labor protection influences firm offshoring
title Home bitter home: How labor protection influences firm offshoring
title_full Home bitter home: How labor protection influences firm offshoring
title_fullStr Home bitter home: How labor protection influences firm offshoring
title_full_unstemmed Home bitter home: How labor protection influences firm offshoring
title_short Home bitter home: How labor protection influences firm offshoring
title_sort home bitter home: how labor protection influences firm offshoring
url http://hdl.handle.net/20.500.11937/67617