fdb – Forschungsdatenbank der Europa-Universität Viadrina Frankfurt (Oder)


Danny Pająk: Off-Shoring. The hidden costs of company relocation

Projektleitung Danny Pająk, Prof. Dr. Albrecht Söllner
Time span 10/2009
Fakultät Wirtschaftswissenschaftliche Fakultät
Lehrstuhl Professur für Allg. BWL, insb. Internationales Management


Relocation - the outsourcing to a non-affiliated company - and off-shoring - the cross-border relocation within the company – now represent standard strategies of firms trying to reduce costs and to stay competitive. Some authors have called outsourcing and at the same time trying to create value through innovation the “business model of the 21st century” (Westland 2008). Although the primary objective to reduce costs through relocation is often achieved, negative side-effects go hand in hand with outsourcing. But whereas "the act of eliminating employees by permanent layoffs, cutbacks, attrition, early retirement and termination" (Gandolfi, 2006: 73), have received much attention in the political and economic debate, little research has been carried out to identify the 'hidden' consequences of relocations for the firm itself. We assume that there are 'hidden costs' of company relocations due to a breach of the implicit psychological work contract.

More formally our research question is: What are the consequences of relocation and off-shoring on the working of hierarchy as a governance-mechanism?


Drittmittelgeber Eigenfinanzierung EUV
Finanzierungsart University budget (100%)


Internationales Projekt Nein