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Off-Shoring. The hidden costs of company relocation



Off-Shoring. The hidden costs of company relocation


Danny Pająk, Prof. Dr. Albrecht Söllner

Projektart: Lehrstuhlprojekt

Finanzierung: Eigenfinanzierung EUV

Projektbeginn: 01.10.2009

Projektbeschreibung in englisch:

Relocation - the outsourcing to a non-affiliated company - and off-shoring - the cross-border relocation within the company – now represent standard strategies of firms trying to reduce costs and to stay competitive. Some authors have called outsourcing and at the same time trying to create value through innovation the “business model of the 21st century” (Westland 2008). Although the primary objective to reduce costs through relocation is often achieved, negative side-effects go hand in hand with outsourcing. But whereas "the act of eliminating employees by permanent layoffs, cutbacks, attrition, early retirement and termination" (Gandolfi, 2006: 73), have received much attention in the political and economic debate, little research has been carried out to identify the 'hidden' consequences of relocations for the firm itself. We assume that there are 'hidden costs' of company relocations due to a breach of the implicit psychological work contract.

More formally our research question is: What are the consequences of relocation and off-shoring on the working of hierarchy as a governance-mechanism?


MonographiePajak, Danny;  2006
Konfliktfeld Offshoring - Auswirkungen von Standortentscheidungen auf Mitarbeiter in multinationalen Unternehmen

Verlag: Vdm Verlag Dr. Müller
ISBN: 9783836400350

MonographieSöllner, Albrecht;  2008
Einführung in das Internationale Management. Eine institutionenökonomische Perspektive

Verlag: Gabler
ISBN: 9783834904041

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