{"title":"Measuring dynamic supply chain risks for the offshoring decision in the post‐COVID‐19 era: A longitudinal study","authors":"Hokey Min, Young-Hyo Ahn, Jin-Hee Ma","doi":"10.1002/tjo3.12026","DOIUrl":null,"url":null,"abstract":"In times of prolonged economic doldrums across the globe, multinational firms (MNFs) offshoring blunders can undermine their competitiveness in the marketplace. To help the MNF formulate a more resilient offshoring strategy and identify the most desirable offshoring destination, this article aims to identify dynamic risk factors that significantly hinder the efficiency of offshoring and then measure specific offshoring risks over time using two different versions of data envelopment analysis (DEA) models and Malmquist productivity index (MPI). After assessing the degree of risk resiliency of the offshoring host countries over extended periods and then conducting Tobit regression analysis to identify key factors that significantly influence offshoring risks, we found that the host country's logistics efficiency (i.e., logistics performance index [LPI]) and domestic market size were critical indicators of offshoring success in that country. Since low‐cost sourcing countries (LCCs) tend to have relatively low LPIs and smaller domestic market sizes, they are not attractive offshoring destinations. This finding defies conventional wisdom. This article is one of the first longitudinal studies to assess the comprehensive risk resilience of 87 different offshoring destinations (countries) during multiple periods (6‐year span).","PeriodicalId":1,"journal":{"name":"Accounts of Chemical Research","volume":"57 11","pages":""},"PeriodicalIF":16.4000,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Accounts of Chemical Research","FirstCategoryId":"5","ListUrlMain":"https://doi.org/10.1002/tjo3.12026","RegionNum":1,"RegionCategory":"化学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"CHEMISTRY, MULTIDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
In times of prolonged economic doldrums across the globe, multinational firms (MNFs) offshoring blunders can undermine their competitiveness in the marketplace. To help the MNF formulate a more resilient offshoring strategy and identify the most desirable offshoring destination, this article aims to identify dynamic risk factors that significantly hinder the efficiency of offshoring and then measure specific offshoring risks over time using two different versions of data envelopment analysis (DEA) models and Malmquist productivity index (MPI). After assessing the degree of risk resiliency of the offshoring host countries over extended periods and then conducting Tobit regression analysis to identify key factors that significantly influence offshoring risks, we found that the host country's logistics efficiency (i.e., logistics performance index [LPI]) and domestic market size were critical indicators of offshoring success in that country. Since low‐cost sourcing countries (LCCs) tend to have relatively low LPIs and smaller domestic market sizes, they are not attractive offshoring destinations. This finding defies conventional wisdom. This article is one of the first longitudinal studies to assess the comprehensive risk resilience of 87 different offshoring destinations (countries) during multiple periods (6‐year span).
期刊介绍:
Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance.
Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.