Senate Hall Academic Publishing

Journal of Strategic Management

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ISSN: 1649-3877

Listed by: Cabells and EBSCO

Frequency: 1 online Volume per year


The emergence of markets and capabilities, dynamic transaction costs and institutions: a case study of organizational choices in offshored and outsourced business services in China

JSME Vol 6: Issue 1, 2010

Author(s): Martha Prevezer (Queen Mary University of London, UK)

This paper uses case study methods to illustrate features of the evolving Chinese market in off-shored business services. It illustrates how the choice between using an in-house subsidiary versus an outsourced supplier has been governed by fears about data security and confidentiality; how the choice between using a global supplier of services versus an indigenous local has supplier depended on the evolution of capabilities and development of firms in China and that this in turn depended on the development of infrastructure and investments in education by the state. Over time as local Chinese firms have developed, choices for outsourcing of business services have spread into a variety of niches, with more routine lower-grade services being outsourced to local firms as the more experienced global suppliers move up the value chain and take on higher-value activities from client firms.

Keywords: off-shoring, China, business services, institutional development

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