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Modelling Value pp 353–370Cite as

Offshorability Along the Value Chain: A Task-Based Approach

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Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

Rapid progress in information and communication technologies has led to a sharp increase in offshoring activities of various companies. Due to offshoring, firms can lower their production costs, enter new markets, and gain access to new resources. Recent theoretical approaches to explain offshoring are mainly task-based and do not differentiate between industries. This paper, in contrast, deals with whole chains in different industries, taking into account the technological restrictions. It analyses the characteristics of tasks for individual production steps in seven different industries, such that the offshorability of production steps for each of these industries can be ascertained. It shows that the production steps in the textile, timber, chemical, metal, electro-technology and automotive industries as well as mechanical engineering differ in their offshoring properties and that some steps cannot be offshored without up- or downstream steps also being offshored.

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Notes

  1. 1.

    The fuzzy logic expects, according to the Gauss distribution, a symmetric distribution of individual attributes. On a scale from zero to one, the characteristics are equally distributed, and thus assessed in ascending order. The higher the value, the higher the offshorability of the task at such an attribute level.

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Acknowledgments

The findings illustrated in this paper are result of the research project “Integrative Production Technology for High-Wage Countries”. The depicted research has been funded by “Interdisciplinary Management Practice” (IMP) of RWTH Aachen University. I am deeply grateful to Christopher Weckbecker and Maximilian Kienböck for their contribution.

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Authors and Affiliations

  1. Department of International Economics, RWTH Aachen University, Aachen, Germany

    Hale Yilmaz

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  1. Hale Yilmaz
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Correspondence to Hale Yilmaz .

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Editors and Affiliations

  1. FH Oberösterreich, Wehrgrabengasse 1-3, Steyr, 4400, Austria

    Herbert Jodlbauer

  2. , Department of Management, Linköping University, Linköping, 58183, Sweden

    Jan Olhager

  3. Schonberger & Associates, 107th Avenue N.E. #2101 177, Bellevue, 98004, Washington, USA

    Richard J. Schonberger

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Yilmaz, H. (2012). Offshorability Along the Value Chain: A Task-Based Approach. In: Jodlbauer, H., Olhager, J., Schonberger, R. (eds) Modelling Value. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2747-7_18

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