1 / 23

Phase I (1960s): vertically integrated national firms and industries

Phase I (1960s): vertically integrated national firms and industries Phase II (1970s): global dispersion through offshoring by MNCs Phase III (1980s ): geographic and organizational fragmentation: outsourcing and offshoring

jovita
Download Presentation

Phase I (1960s): vertically integrated national firms and industries

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Phase I (1960s): vertically integrated national firms and industries Phase II (1970s): global dispersion through offshoring by MNCs Phase III (1980s ): geographic and organizational fragmentation: outsourcing and offshoring Phase IV (1990s): A new consolidation, global suppliers, the rise of China Phase V (2000): Services offshoring, distributed R&D and design, global knowledge and innovation networks, the rise of India Why we are here and why the analytical problem is becoming more difficult: the evolution of global industries and the rise of GVCs

  2. Key questions raised by global value chains • What business functions are establishments doing internally and externally(outsourcing)? • What business functions are establishments doing domestically and abroad (offshoring)? • What types of jobs go with various business functions, including employment by occupation, wages, tenure, and number and type of new hires? • What educational and training requirements are associated with various business functions? • How do the business functions that an establishment engages in relate to the goods and services bought and sold (inputs and outputs)? • How do the business functions that an establishment engages in relate to its economic performance (market share, profitability, employment, share of value added, market share) • How do the mix of business functions in establishments compare across countries?

  3. There is a need to collect firm- or business line-level economic data according to a set of generic business functions • Generic definitions to allow comparison and aggregation across industries and places • Functional classifications (neither occupation nor industry) reflect the tools used by managers and yield collectable data • Comprehensive definitions include bothstrategic and mundane functions • Ownership of business function sources measures outsourcing • Location of business function sources measures offshoring • Employment by business function reveals organizational design

  4. Current efforts to collect original business function data • USA, Bureau of Labor Statistics Mass Layoff Statistics Program (BLS MLS) • Ongoing national data collection: For the first two quarters of 2007 BLS reported on 2,135 layoff events where Business Functions were identified, involving 464,765 workers. • European Union, Questionnaire on International Sourcing (EU Survey) • Administered in 14 out of 27 EU member states with 60,000 responses so far. • Canada, Survey of Changing Business Practices in the Global Economy (Stats Canada) • Undergoing pilot testing at Canadian MNEs, survey jointly developed by the Canadian Department of Foreign Affairs and International Trade (DFAIT), in partnership with Statistics Canada and Industry Canada • USA, National Organizational Survey (NOS) • Under development for 2009 with sample frame derived from survey of 3,000 individuals in 2008 General Social Survey (module on globalization, technological change, and economic insecurity). • International Offshoring Research Network (ORN) • Survey of 253 US companies reporting 880 offshoring implementations initiated between 2000 and 2006. Data collected by business function. 14% response rate.

  5. Core Business Functions, Definitions

  6. Support Business Functions, Definitions

  7. Strategic management Product development Marketing & sales Intermediate input pdn. Logistics & distribution Procurement Operations Core vs. support functions Core functions (the value chain) Corporate governance Human resources Technology & process development Firm infrastructure and IT Customer and after-sales service Support business functions

  8. Using Business Functions to Reveal Organizational Design (hypothetical example) “SoftTest” Inc. Newark, NJ Affiliated supplier Independent supplier

  9. Internal, External, and International Sourcing of Business Functions by Danish Firms, 2002-2006 Notes: n=3,170 Danish enterprises with more than 50 employees. Rows may not add to 100% because a few firms reported more than one source for a given business function. Source: Eurostat International Sourcing Survey, courtesy of Statistics Denmark (Nielsen, 2008).

  10. Hypothetical employment and wage data according to business function for three types of firms (note: business function categories unrevised )

  11. Hypothetical employment according to business function for three types of firms

  12. The vision: roll out business function metrics internationally —Hypothetical business function employment shares for Canada and China

  13. Comparison of current business function frameworks

  14. Comparison of current business function frameworks

  15. Comparison of current business function frameworks Distribution of offshore implementations across functions and locations Source: Lewin, Massini, and Peters, 2008, “Why Are Companies Offshoring Innovation?” Journal of international Business Studies

  16. Survey format for outsourcing and offshoring of business functions (inputs)

  17. Survey format for geography of sales (outputs)

  18. Survey format for (occupational) employment and wage data by business functions

  19. Survey format for GVC governance characteristics(Statistics Canada)

  20. Survey format for GVC transaction characteristics (Statistics Canada)

  21. Survey questions about the offshorability of work (NOS) • How often do you meet face to face with customers, clients, patients, or others to whom you provide products or services? • How often do you meet face-to-face with co-workers to work on projects, for example solving special problems or improving products or services • How often do you exchange information with co-workers located outside the United States? • What proportion of your workforce uses a computer or computerized equipment at work? • Could your workers (who use computers) do their jobs without a computer or computerized equipment?

  22. Do we need an international working group for the harmonization of business function-based GVC data collection? • Business function definitions • Balance between comprehensiveness vs. collectibility • Hierarchical definitions, OK, but let’s keep it simple • Job-level descriptive criteria • Skills, training, wages, age, gender, occupations (available from other surveys) • Offshorability • Firm-level descriptive criteria • Firm characteristics: turnover, industry, value chain role(s) • Mapping the chain: location of affiliates, main suppliers, geography of employment and sales • Business functions: quantitative measures • (Occupational) employment by business function • Number of outsourced and offshored implementations by business function • Location by business function • Business functions: qualitative measures • Ownership of input sources (affiliates or suppliers) • Motivations for outsourcing and offshoring • Value chain governance characteristics

More Related