Abstract
Locating one or more components of the value chain offshore is now a common element of the global strategy of many firms. Strategic motives include cost reduction, enhancing efficiency, leveraging of competence-based advantages, geographic expansion and speed to market. However, there is little academic research which has explored the relative impact of different strategic motives on offshoring performance. Using primary data on 201 Australian organisations, the empirical results of partial least squares (PLS) structural equation models suggest that implementing offshoring to achieve better efficiency and/or growth will have significant positive direct effects on firm performance and that the strategic motive has moderating effects on the relationship between the degree of offshoring and firm performance.
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