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Multinational Service Outsourcing Research: The Host Country And Undertake Side Perspective

Posted on:2009-09-16Degree:DoctorType:Dissertation
Country:ChinaCandidate:L L SongFull Text:PDF
GTID:1119360272459786Subject:Business management
Abstract/Summary:PDF Full Text Request
The progress in ICT(information and communication technology) pushed the globalization to a new phase. It changed the non-tradability of service in great degree. The revolutionary change of service tradability makes service outsourcing come into the scope of MNC strategy. As the new form of international service manufacturing and labor division, the service outsourcing has deep influence on service trade, industrial structure and salary income. It also provides new opportunity for developing country to melting into world economy and get new developing engine. Service outsourcing has become the focus of international business management and global economy.Looking from the extending research, research extent and depth of service outsourcing are weaker than manufacture outsourcing. Most of extending research is based on developed country and short of micro operational research. So, this paper mainly based on developing country and receiver partner. The research focus is international service outsourcing which operate by MNC.Specifically for the current situation and combined with practical needing, this paper mainly study the following problems. In order to analysis MNC service outsourcing from the receiver perspective.1,The definition and extension of service outsourcing and its typical characters. Service outsourcing as MNC strategic transformational tool and relation transformation of both sides under transformational condition.2,The political and economic influence on receiving country.3,Empirically study the factors that influencing MNC location choice decision-making. Research based on host countries can provide practical guidance for developing countries join into global service value chain.4,Premises and micro dynamic mechanism of MNC service outsourcing.5,Empirically study factors that influence MNC service outsourcing partner selection based on Chinese service outsourcing receiving enterprises.6,Government strategy and enterprises tactics on how to receive international service outsourcing by China.Based on literature review and theoretic analysis, contents of this paper are divided into two parts, that is macro part and micro part. Finally, focus into the question that how to receive MNC service outsourcing business for China. Macro part contents include economic effects analysis on host country and location choice of MNC service outsourcing from host country perspective. It is the macro factor of how to receiving MNC service outsourcing business.In micro part contents , this paper researches premises and micro dynamic mechanism of MNC service outsourcing and put emphasis to service vendor which had accelerated MNC service outsourcing. Then, it researched factors of MNC service vendor choice. It is the micro factor of how to receive MNC service outsourcing business.Conclusions of this paper are following:1,Service outsourcing is the innovative strategy and arrangement of MNC which is derived by globalization and more and more drastic competition. It is also the result of global international labor division and the change of politices, economy and technology. New service outsourcing is international and offshore operational.2,Outsourcing is the important strategic tool for MNC business model transformation. There are some differences between traditional outsourcing and transformational outsourcing. The relationship between services outsourcing partner are transformed from short-term simple business to long-term strategic cooperation. It formed new risk and benefit share mechanism.3,After finding out the antecedents and consequences of the political debate, this paper showed that the essence of the debate was the opportunism behavior which droved by political interest. Service outsourcing influence the sending service country in several issues, such as, employee transposition and creation effect, global value creation effect and trade creation effect. Based on the positive effect in host country, this paper mainly analysis the negative effect of service outsourcing, that is the value chain lock effect, innovation baffling effect and frangibility of economy.4,Empirical research on the macro factor of MNC service outsourcing, that is, location factor. This paper research the factors which influence MNC service outsourcing location decision-making through selecting second hand dates from 41 host countries. Research discovers that labor cost, labor quality, host country infrastructure and economic development level of host country have positive significant effect on MNC service outsourcing location decision. Culture gap between two countries has no significant effect on service outsourcing.5,The deepen process of international labor division from industry to intra-industry then to intra-product and the soft trend of international industry transfer are important factors of MNC service outsourcing. That many special service outsourcing vendor in the market is the practical situation for MNC to realize service outsourcing.6,Empirically research micro factors on how to receive MNC service outsourcing, that is, service supplier select problem. Adopting questionnaire survey method, getting one hand dates, we study the factors affecting MNC service supplier choice. In the research process, we construct a regression model and make use of software SPSS version edition. Empirical conclusions of Chinese services vendor are as follows:(1)Factors attribute to strategy, that is, "hard" capabilities that are relative to implement and complement of outsourcing tasks. It can influence quality and level of service supply directly. The degree of enterprise devoting to IT infrastructure, provability of human resource, cost competition capability and total service capability are positive correlated with MNC service outsourcing significantly. External support environment has no significant influence.(2)Factors attributes to organization, that is,"soft"capabilities of service supplier which have drive or baffling effects to implement and complement of service outsourcing. International experience, organization reputation and compatibility of organizational culture have significant positive effect on MNC service outsourcing. Management skill and administration efficiency had no significant effect.(3)Strategy attribute and organization attribute as a whole all have significant influence on MNC service outsourcing. That is, service supplier not only should strengthen "hard" capability but also should strengthen "soft" capability. It is more pressing for Chinese service outsourcing supplier to strength "soft" capability.The innovations of this research mainly are following:1,Explain MNC service outsourcing from multiplex perspectives, that is transactional cost economy, resource based view, global value chain theory and busin ess model transformational theory. It integrated these theories and constructs a comprehensive theoretic analysis framework. This paper discusses levels and comprehensiveness of different theory perspectives.2,Empirically research MNC service outsourcing location choice by selecting second hand dates of 41 host countries from host country perspective. Most of extending research are based on sending country and developed country. The conclusions and prescriptions are not suitable for developing country. It is different to extending researches that culture difference between two countries is not significantly related to MNC service outsourcing location choice.3,Empirically researched factors influencing supplier choice of MNC service outsourcing make using of dates from Chinese service receiving enterprises. We gained first hand dates through questionnaire survey method in half year.External supporting condition and management skills are not significantly related to service vendor choice. It is different to common sense.To sum up, this paper systematically researched MNC service outsourcing behavior adopting theory and empirical method and based on outsourcing receiving partner. Supply a gap in extending western service outsourcing research. Researches based on developing country are more suitable and practical for china.
Keywords/Search Tags:MNC, service outsourcing, host country, service supply partner
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