International Modularity and Offshoring in Spanish Industry

  1. Sandra Valle Álvarez 1
  2. Lucía Avella Camarero 1
  3. Francisco García Pérez 1
  1. 1 Universidad de Oviedo
    info

    Universidad de Oviedo

    Oviedo, España

    ROR https://ror.org/006gksa02

Journal:
Modern Economy

ISSN: 2152-7245 2152-7261

Year of publication: 2011

Volume: 02

Issue: 04

Pages: 680-690

Type: Article

DOI: 10.4236/ME.2011.24076 GOOGLE SCHOLAR lock_openOpen access editor

More publications in: Modern Economy

Abstract

This paper aims to analyze participation by Spanish industrial firms in the marked process of international production modularity or fragmentation that is taking place on a global scale. It studies whether firms use offshoring (that is, transfer activities abroad), what type of activities are offshored, the type of offshoring used, the main target countries, the reasons for offshoring and the benefits it brings. Qualitative research into four Spanish business groups shows that they all use offshoring, mostly outsourcing manufacturing to international suppliers. When choosing offshore location, these groups aim to achieve not only cost savings but also advantages from the agglomeration of the agents with which they need to interact, as well as access to new markets and relevant resources (infrastructure, auxiliary industry, production capacity, technology and know-how).

Bibliographic References

  • Z. Fernández, “Desintegración e Integración Internacional de la Cadena de Valor,” Información Comercial Espa?ola ICE, No. 838, September-October 2007, pp. 147-156.
  • P. Ghemawat, “Redefiniendo la Globalización la Import- ancia de las Diferencias en un Mundo Globalizado,” Deusto, Barcelona, 2008.
  • G. Grossman and E. Rossi-Hansberg, “The rise of offshoring: It’s not wine for cloth anymore. In Federal Reserve Bank of Kansas City, ” The New Economic Geography: Effects and Policy Implications, Jackson Hole, Wyoming, August, 2426, 2006.
  • J. A. Alonso, “Fragmentación Productiva, Multilocalización y Proceso de Internacionalización de la Empresa,” Información Comercial Espa?ola ICE, No. 838, September-October 2007, pp. 23-39.
  • C. Jahns, E. Hartmann and L. Bals, “Offshoring Dimensions and Diffusion of a New Business Concept,” Journal of Purchasing & Supply Management, No. 12, 2006, pp. 218-231.
  • W. Lankford and F. Parsa, “Outsourcing: A Primer,” Management Decision, No. 37, 1999, pp. 310-316.
  • M. Robinson and R. Kalakota, “Offshore Outsourcing-Business Models,” ROI and Best Practices, Mivar, 2004.
  • S. Berger, “Desde las Trincheras Cómo se Enfrentan Empresas de Todo el Mundo a las Fronteras de la Economía Global,” Empresa Activa, Barcelona, 2006.
  • B. Kogut and S. J. Chan, “Technological Capabilities and Japanese Foreign Direct Investment in the United States,” Review of Economics and Statistics, No. 73, 1991, pp. 401-413.
  • T. Wesson, “A Model of Asset-Seeking Foreing Direct Investment Driven by Demand Conditions,” Revue Canadienne des Sciences de l′Asministration, Vol. 16, No. 1, 1999, pp. 1-10.
  • K. M. Eisenhardt, “Building Theories from Case Study Research,” Academy of Management Review, Vol. 14, No. 4, 1989, pp. 532-550.
  • R. K. Yin, “Case Study Research: Design and Methods,” Sage, London, 1989.