Managing institutional differences for international outsourcing success: the case of a small New Zealand manufacturing firm

Managing institutional differences for international outsourcing success: the case of a small New Zealand manufacturing firm
Document type
Article
Author(s)
Sharma, Revti; Lindsay, Val; Everton, Nikki
Publisher
Emerald
Date of publication
1 January 2015
Series
Journal of Business Enterprise and Development. Vol. 22; Number 3
Subject(s)
Business & management history: including the development of management thought
Collection
Business and management
Material type
Reports

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The purpose of this paper is to fill a research gap by exploring how small firms manage institutional differences to enhance their international outsourcing success. The authors use data from interviews conducted with two managers of a small New Zealand apparel manufacturing firm who have over 35 years of combined experience with international outsourcing. The firm had both failed and successful experiences in its international outsourcing ventures. The authors discuss the findings in the context of the extant literature on international outsourcing. They argue that small firms overcome institutional constraints they face in offshore locations by leveraging from their entrepreneurial skills, learning from failures and using a relational governance mode. This results in achieving performance targets and sustaining long-term relationships with suppliers, which they define as international outsourcing success in this study.

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