Journal of Economics and Management (Mar 2018)

Key Location Factors and the Evolution of Motives for Business Service Offshoring to Poland

  • Radosław Malik

DOI
https://doi.org/10.22367/jem.2018.31.06
Journal volume & issue
no. 31
pp. 119 – 132

Abstract

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Aim/purpose - The aim of the research is to study key location factors and changes in motives for business service offshoring. Design/methodology/approach - The empirical research was conducted on a sample of 200 managers employed in business service centers in Poland. Findings - The results of the research confirm human capital as the most important basis for the location selection of business-service offshoring to Poland. The study has revealed that the pursuit of cost reduction is currently the most important motive for the relocation of business services to Poland. It has been shown that the motives for business service offshoring undergo evolution. The importance of salary arbitrage is diminishing, while other motives are becoming increasingly crucial. In the near future, efficiency improvement and service quality are expected to become more important than cost reduction, while innovation improvement is expected to grow at the fastest rate. Research implications/limitations - In the global economy, the location of business services is becoming the subject of increasingly free choice. Transnational corporations transferring their business services implement various location strategies in search of specific advantages that reflect their expectations. The findings of the study could be extended to other transition economics. Originality/value/contribution - It is one of a few empirical studies on the evolution of motives for business service offshoring worldwide and the first performed in Poland, which has become an important host location for business service offshoring in Europe(original abstract)

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