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    Home bitter home: How labor protection influences firm offshoring

    Access Status
    Fulltext not available
    Authors
    Weng, D.
    Peng, Mike
    Date
    2018
    Type
    Journal Article
    
    Metadata
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    Citation
    Weng, D. and Peng, M. 2018. Home bitter home: How labor protection influences firm offshoring. Journal of World Business. 53 (5): pp. 632-640.
    Source Title
    Journal of World Business
    DOI
    10.1016/j.jwb.2018.03.007
    ISSN
    1090-9516
    School
    School of Management
    URI
    http://hdl.handle.net/20.500.11937/67617
    Collection
    • Curtin Research Publications
    Abstract

    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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