Impact of Offshore Outsourcing on Competitive Advantage of U.S. Multinational Corporations

Offshore outsourcing became a common business practice by most U.S. and Western businesses after the Internet became viable. It is expected that by 2015 the U.S. market will outsource 3.3 million employment opportunities and will pay an estimated $136 billion in salaries to Asian countries (Hemphill, 2004). Outsourcing became a necessity for corporations to reduce cost and maintain competitiveness in the marketplace, but its effectiveness in achieving superior performance and competitive advantage needs to be explored. The relationship among offshore outsourcing, market freedom, and competitive advantage is an important issue for multinational corporations to conduct business and gain competitive advantage. National culture is also a component of the analysis based upon the role that cultural perceptions play in the cultivation of relationships with foreign nationals and representative companies. The critical analysis of theoretical and empirical literature explored the factors influencing competitive advantage, investigated the impact of offshore outsourcing on competitive advantage, and identified future areas of scholarly inquiry. This literature indicated that U.S. multinational corporations use offshore outsourcing as part of their strategy to establish competitive advantages and better performance. Sources used in this paper focus predominantly on the theoretical, empirical, and historical literature relating to offshoring and outsourcing. This dissertation focuses on U.S. multinational corporations, and discusses the relationship among offshore outsourcing, national culture, market freedom and competitive advantage. The review of the literature suggests a strong level of ambiguity within the initial data. The ambiguity is the result of themes within the literature that contain contradictory subject matter, as well as conflict over how and why specific information is relevant to competitive advantage within the offshore outsourcing process. Problems of ambiguity are further exacerbated in respect to the research methodology used to approach these areas of research. Conflicting results are suggestive of flawed decision-making strategies (such as confusion of terms and limitations on the criteria concerning offshoring and outsourcing) used within the research methodology. It is also indicative of problems in isolating themes that are best applicable to these processes. Of note are problems in the empirical literature in which researchers presented conflicting opinions regarding successful application of offshore outsourcing. This indicates that increased inquiry is required into the study of offshore outsourcing to identify the themes within the literature, and to assess the overall impact of these processes on competitive advantage. The analysis of variance and simple regression results used in this dissertation indicated that offshore outsourcing has no significant impact on competitive advantage. However, a positive relationship does exist. Market freedom factors and multinational corporations\u27 offshore outsourcing are significant variables of the competitive advantage of multinational corporations. The study indicated that an increase of one unit in market freedom in China will result in an increase of competitive advantage by .37 units. Similarly, a one unit increase in market freedom in India will result in an increase of competitive advantage by .45 units

Cross-Cultural Similarity and Differences in Parents “Sharenting” Using Online Social Media from Information Privacy Perspective: The Case of Snapchat

Online communication using social networks represents a major risk for users in terms of information privacy. While the trend for social network use becomes more popular, it has already created new social risks in the form of information overuse such as sharenting. The term “sharenting” denotes the correlation between sharing and parenting and represents the overuse of parents’ efforts in distributing digital content about their children. To date, sharenting was not actively explored within the information research context and its risks to the user privacy, as well as demonstration of sharenting in various cultures. Therefore, the purpose of this paper is to provide a proposal for the cross-cultural study of sharenting from a privacy perspective using the context of the social network Snapchat

An Investigation of Online Navigation Patterns of Consumers Across Cultures

Researchers have been interested in understanding the online purchase intentions of consumers. It’s interesting to see why consumers differ in the way they navigate the Internet. However, it’s still not very well explored as to what role a country\u27s cultural variables play in online purchase behavior of its users. The goal of this dissertation is to identify the determinant variables of online buying behavior of users from different cultural environments. Hofstede\u27s cultural dimensions are used to understand some of the differences. This study also conceptualizes attitudes toward search on mobile devices vs. desktops. The search behavior on mobile devices is analyzed based on demographic profiles of the e-shoppers. In Chapter 1, the background of the research is set by looking into the web adoption patterns for multiple needs, and the distinction is made between the users’ behaviors focused on actual use of the services offered versus the internet access for general purpose i.e., without any specific service in mind. This helps segment the consumers based on demographic variables and the social context of the user. The primary factors affecting the internet penetration rate in different countries are looked into too. This gives an important perspective of the key foundation of the e-commerce industry i.e., access to Internet to the populace — which forms the superset of potential buyers. The effects of high education, per capita income and telephone connectivity are explored. It\u27s intuitive to see that credit card penetration level will have a positive correlation with the online purchase rate. In this research, it is found that countries with low credit card penetration have less e-commerce even though the cash on delivery option is available there. In chapter 2, the consumer behavior in different countries is analyzed through the lens of Hofstede\u27s cultural dimensions – Uncertainty avoidance (UAI), Individualism vs. Collectivism (IDV), Masculinity (MAS) and Long-term orientation (LTO). We use the browsing behavior data of the top 5 e-commerce websites of 45 countries obtained through the Alexa website. In order to approach a conceptualization of cultural dimensions with regards to the web, we work with Hofstede’s cultural dimensions and consider how cultures might affect user interface design. It is found that consumers from countries that are high on uncertainty avoidance search for longer durations. In addition to that, consumers from countries high on collectivism are more likely to come to a shopping website from social media websites as compared to that from search engine websites. With the data collected from Globalwebindex platform, the online purchasing drivers for 36 countries are also explored and it is found that the social network\u27s influence on purchase decision is more for countries with low IDV scores and the chances to buy on social network are less for users of high IDV countries. Similarly, we find that users from countries with low UAI and high IDV are more likely to use private browsing window during the online purchase as it protects the users\u27 browsing behavior data on e-commerce websites. And it\u27s also found that users from countries low on IDV are more likely to write post-purchase online reviews. The results support the conjecture that examining the cultural dimensions and customers\u27 attitudes for online shopping is critically important for e-commerce players intending to make their mark in the global arena. They should consider these different types of online buying behaviors when it comes to web design. In chapter 3, we attempt to model consumer choice behavior towards web search engines, taking into account users\u27 demographic and cultural dimensions too. The factors that contribute towards the choice of a consideration set of web search engines are explored—using consideration set theory. The choice of the number of web search engines is modeled, taking into account three different categories of variables i.e., ‘who’ – which includes consumer characteristics including cultural dimensions, ‘what’ – which includes information search characteristics and ‘why’ – which includes attitudinal characteristics. Results of the study indicate that \u27Age\u27 and \u27Uncertainty Avoidance\u27 have significant effect on choice of number of search engines by consumers. Attitudinal characteristics don\u27t contribute significantly towards explaining the choice behavior towards web search engines but information search parameters are significant in that regard. In chapter 4, the roles of uncertainty avoidance and the demographic variables are identified in online purchase behavior of mobile-only-internet-users (MOIU) vs. desktop-internet users. It is found that the countries with high IDV scores have higher percentage of MOIU and UAI has no effect irrespective of the fact that internet access with mobile devices offers less data privacy. The more individualistic nations have better infrastructure, they have more opportunities to use other mobile devices like iPad and laptop to access the Internet. So, they are less likely to be mobile only. The effect of income per capita on a PPP (Purchasing Power Parity) basis has no significant effect on MOIU. An explanation for it could be the one mentioned above—the required infrastructure not being in place for potential users to access the Internet on desktops. In addition to that, it is found that the effect of IDV scores and the age of users— on MOIU number—are significant too. Also, the young users, aged between 25 – 35 years, are much more likely to fall into the MOIU category, irrespective of which country they are from. In chapter 5, we conclude with our findings and identify the limitations and the future research directions

Analysis of the influence of non-pharmaceutical interventions and cultural differences on the evolution of COVID-19

Since the beginning of the COVID-19 pandemic, countries worldwide have implemented a set of Non-Pharmaceutical Interventions (NPIs) as a way to face the evolution of the pandemic. In this dissertation we propose a detailed analysis of the evolution of the pandemic that considers the degree of restriction of NPIs from March 2020 to May 2021 and the reproduction rate in five countries: India, Brazil, United Kingdom, Israel and Portugal. In addition to this, we analyse the impact that Hofstede's cultural dimensions may have between implementations of various degrees of restriction of NPIs and the reproduction rate by applying machine learning models to understand whether cultural characteristics are useful information to improve reproduction rate predictions. To achieve these objectives, we follow the CRISP-DM methodology being that we gather data from Our World in Data COVID-19, Oxford COVID-19 Government Response Tracker and Hofstede Insights website. We show an in-depth and extensive analysis over these months of the pandemic which shows differences between the five countries that have implemented the same NPIs to different degrees and where culture plays an important role in each country's response to the various NPIs implemented.Desde o início da pandemia COVID-19 que os países do mundo inteiro implementaram um conjunto de intervenções não farmacêuticas (NPIs) como forma de combater a evolução da pandemia. Nesta dissertação propomos uma análise detalhada da evolução da pandemia que considera o grau de restrição das NPIs desde Março de 2020 a Maio de 2021 e a taxa de reprodução em cinco países: India, Brasil, Reino Unido, Israel e Portugal. Além disto, analisamos o impacto que as dimensões culturais de Hofstede podem ter entre as implementações de vários graus de restrição de NPIs e a taxa de reprodução aplicando modelos de machine learning para compreender se as características culturais são informações úteis para melhorar as previsões da taxa de reprodução. Para concretizar estes objetivos, nós seguimos a metodologia do CRISP-DM sendo que, reunimos dados de Our World in Data COVID-19, Oxford COVID-19 Government Response Tracker e o website Hofstede Insights. Mostramos uma análise aprofundada e extensa ao longo destes meses da pandemia a qual mostra diferenças entre os cinco países que implementaram as mesmas NPIs em diferentes graus e em que a cultura desempenha um papel importante na resposta de cada país às várias NPIs implementadas

Cross-cultural issues in virtual team support: Communication characteristics and task/technology perceptions from Mexican and U.S. team members

We present a study of cross-cultural virtual teams supported by two computer-mediated communication technologies (electronic mail and the World-Wide Web). Our primary focus is to identify how cultural differences affect users\u27 task and technology perceptions. Dyads made up of members from the United States and Mexico created a five-page strategic plan for the implementation of a joint MBA international business capstone course that establishes strong international bonds between the students of both institutions. Team members generated ideas, made decisions, and created a common strategic course through Email-based correspondence. They also had access to a project coordination guide, which was a website with project guidelines, timelines, updates, and the postings of all participants and information on their respective institutions and host cities. Analysis of pretest questionnaires revealed strong similarities between the two cultural groups with respect to professional background and experience with relevant technologies, and differences in language facility with Spanish and English. Analysis of posttest data showed marked differences in communication characteristics (frequency and length of message) and perceptions of process, outcome and opinions of suitability of the technologies to support the task. Results, consistent with earlier studies, show the limited power of popular theoretical characterizations of national culture to predict culture-based differences in information technology use and perceptions. Alternative, relevant culture-based factors are discussed

Inroads to Outrounds: A Hofstedian Approach to Newcomer Integration into the Culture of Forensics

This study examines how newcomers to forensic competition in intercollegiate forensics integrate themselves into the larger community of competitors. Specifically, this study takes an intercultural approach and frames the forensic organization as a culture unto itself into which new arrivals must assimilate. To shed further light on this culture, this study determines where members of “forensic culture” are positioned on Hofstede’s cultural spectra. By modifying Hofstede’s original Values Module Survey and administering it to current competitors from around the country, insight can be gleaned into the cultural attitudes of the forensic organization, and the values that guide the practice of forensic culture. In light of these attitudes and values, suggestions for coaches to help their novices feel more at ease in collegiate forensics are offered

Cultural Dimension Interests, the Dance of Negotiation, and Weather Forecasting: A Perspective on Cross-Cultural Negotiation and Dispute Resolution

This article will argue that effective cross-cultural negotiations and dispute resolution requires an understanding of Cultural Dimension Interests (CDI). The article will review many of the cultural interests that impact negotiation and dispute resolution by: 1) specifically reviewing the cultural theories of Edward T. Hall, Geert Hofstede, Fons Trompenaars and Charles M. Hampden-Turner, and Richard D. Lewis, 2) considering country specific anecdotal accounts of national negotiating behaviors, and 3) reviewing some specific beliefs, behaviors, and practices that impact national negotiation styles and approaches. This article will focus mainly on cross-cultural differences between American and Asian negotiation styles and behaviors

Global E-commerce Readiness of U.S. SMEs towards the Mexican Market: Are American Small Businesses Prepared for Digital Commerce to Mexico?

The entry into force of the United States-Mexico-Canada Trade Agreement on July 1st, 2020, ushered in a new era of regional trade for the region. The modernized agreement’s inclusion of a chapter specifically focused on expanding digital trade and investment reflected a business phenomenon that had expanded markedly over the last ten years: cross-border e-commerce within the former NAFTA region. This article examines the literature needed to assess the readiness of U.S. small and medium-sized businesses (SME’s) to sell to the Mexican market online based on the degree of localization of their firm’s websites towards the Mexican market. First, a comprehensive review of export readiness will be presented, highlighting the critical role of market readiness in the internationalization process of SMEs. Next, a detailed overview of key findings in the international marketing literature will be surveyed on the advantages and disadvantages of standardization-localization in international firm expansion and the critical role that localization plays in determining the international success of an SME. Finally, the author will examine the role of website localization as an integral aspect of adaptation to foreign markets, including assessment frameworks, identification of its role in export marketing success, and critical localization components. Future research includes assessing the global e-commerce readiness of U.S. firms in Mexico by using established frameworks to evaluate their website’s degree of localization for the local Mexican context

Exploring consumer motivation and decision-making in accommodation rentals through peer-to-peer digital platforms

The sharing economy has been growing at an unprecedented rate in recent years. Digital peer-to-peer platforms have facilitated this growth and the ease of use and accessibility of these platforms have led to their increased adoption. Peer-to-peer platforms have expanded their services to new countries which has enabled consumers to participate in various sharing economy services globally. With the increasing popularity of the sharing economy, there is a growing need to understand why and how consumers participate in these platforms. The aim of the study is to explore the factors that motivate consumers to rent an accommodation via peer-to-peer digital platform and examine the extent to which cultural factors, and travel destination influence their decision-making process. The study was conducted as qualitative research and the data was collected through semi-structured interviews. A total of 10 interviews were conducted amongst young Finnish consumers who had prior experience with accommodation rentals through the accommodation sharing platform Airbnb. The study was further supported by a literature review, which provides the theoretical framework for the study. The literature review focuses on the extant research on sharing economy, motivation theories, generation Z and cultural values as well as the relationship between these topics. The findings of the study show that cost benefits were found to be the most prominent factor guiding purchase decisions, followed closely by convenience whereas social and sustainability factors were considered less influential in the decision-making process. Authenticity and uniqueness of the accommodation were also found to be important factors for some participants. Additionally, the study found that trust was a crucial factor and reviews played a vital role in building trust. The impact of travel destination on sharing economy participation was found to be influenced by cultural differences and safety concerns in cases where the travel destination was perceived to be culturally highly distinct or located far away.Jakamistalous on kasvanut viime vuosina ennennäkemätöntä vauhtia. Digitaaliset vertaisverkkoalustat ovat toimineet kasvun tukena ja muun muassa alustojen helppokäyttöisyys ja saavutettavuus on nähty alustojen käytön yleistymiseen vaikuttavina tekijöinä. Vertaisverkkoalustat ovat laajentaneet palvelujaan uusiin maihin, mikä on mahdollistanut sen, että kuluttajat voivat hyödyntää jakamistalouden alustoja ja palveluita maailmanlaajuisesti. Jakamistalouden suosion kasvaessa tarve ymmärtää, miksi ja miten kuluttajat käyttävät vertaisverkkoalustoja lisääntyy. Tutkimuksen tavoitteena on tutkia tekijöitä, jotka motivoivat kuluttajia vuokraamaan majoituksen digitaalisen vertaisverkkoalustan kautta sekä selvittää, missä määrin kulttuuriset tekijät ja matkakohde vaikuttavat kuluttajan päätöksentekoprosessiin. Tutkimus toteutettiin laadullisena tutkimuksena ja aineisto kerättiin puolistrukturoiduilla haastatteluilla. Haastatteluja toteutettiin yhteensä kymmenen ja haastateltavat koostuivat nuorista suomalaisista kuluttajista, joilla oli kokemusta majoitusvuokrauksesta Airbnb:n kautta. Tutkimuksen tukena käytettiin myös kirjallisuuskatsausta, joka muodostaa tutkimuksen teoreettisen viitekehyksen. Kirjallisuuskatsauksessa keskitytään jakamistaloutta, motivaatioteorioita, Z-sukupolvea ja kulttuurisia tekijöitä käsitteleviin aikaisempiin tutkimuksiin ja teorioihin. Tutkimuksen tulokset osoittavat, että kustannushyödyt ovat merkittävin ostopäätöstä ohjaava tekijä majoituspaikan valinnassa. Toisena tärkeänä tekijänä nähtiin kätevyyteen liittyvät tekijät, kun taas sosiaalisilla ja kestävään kehitykseen liittyvillä tekijöillä koettiin olevan vähemmän merkitystä päätöksentekoprosessissa. Myös majoituspaikan autenttisuus ja ainutlaatuisuus osoittautuivat tärkeiksi tekijöiksi joidenkin haastateltavien osalta. Lisäksi tutkimuksessa havaittiin, että luottamus on merkittävä tekijä majoituspaikan valinnassa ja arvosteluilla on huomattava rooli luottamuksen rakentamisessa. Kulttuurierot ja huoli turvallisuudesta olivat tutkimuksessa havaittuja kohdemaan vaikutukseen liittyviä tekijöitä, joita esiintyi erityisesti sellaisissa tapauksissa, joissa kohdemaan koettiin olevan maantieteellisesti etäällä tai kulttuurisesti kaukana omasta kotimaasta

A new model for cross-cultural web design

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University.People from different cultures use web interface in different ways, expect different visual representation, navigation, interaction, mental model, and layouts etc., and have different communication patterns and expectation. In the context of globalisation, web localisation becomes a powerful strategy to acquire an audience in a global market. Therefore, web developers and designers have to make adaptations to fit the needs of people from different cultures, and the way cultural factors are integrated into web interface design needs to be improved. Most previous research lacks an appropriate way to apply cultural factors into web development. No empirical study of the web interface has been carried out to support the cross-cultural web design model. It is noted that no single model can support all cross-cultural web communication but a new model is needed to bridge the gap and improve the limitations. Thus the research aim was to build a new model of cross-cultural web design to contribute to effective communication. Following an extensive literature review, a local web audit was conducted, then a series of experiments with users to gather and evaluate data and build and validate the new model. A new model, based on a study of British and Taiwanese users, was formulated and validated demonstrating that content and message remain the core of web design but the performance of the selected users is influenced by the cultural dimension and cultural preferences and this, in turn impacts on the effectiveness of the web communication. For the British user sample, ease of using the website was seen to be strongly related to desirability. Taiwanese users showed preference for visual pleasure but no relationship between efficient performance and desirability. The resultant model contributes to the knowledge of how to design effective web interfaces for British and Taiwanese cultures and is replicable for the purpose of comparing approaches to designing for other cultures