IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v24y2018i8p963-979.html
   My bibliography  Save this article

Offshoring of services as a competitive strategy in the tourism industry

Author

Listed:
  • Begoña Fuster

    (University of Alicante, Spain)

  • Adelaida Lillo-Bañuls

    (University of Alicante, Spain)

  • Carmen Martínez-Mora

    (University of Alicante, Spain)

Abstract

The offshoring of services has steadily expanded in recent years and acquired growing importance in certain tourism subsectors. The present study analyses for the first time the offshoring indices and the trend seen in tourism services, based on input–output data (Spanish National Accounts) during the 2000–2007 expansive period. A distinction is made between offshoring associated with international fragmentation of production and offshoring due to a shift from domestic to foreign suppliers. The results point to a relocation of intermediate services to foreign countries in certain tourism subsectors (including travel agencies and air and maritime transport), involving both the international fragmentation of production and a substitution of the source of supply.

Suggested Citation

  • Begoña Fuster & Adelaida Lillo-Bañuls & Carmen Martínez-Mora, 2018. "Offshoring of services as a competitive strategy in the tourism industry," Tourism Economics, , vol. 24(8), pages 963-979, December.
    • Handle: RePEc:sae:toueco:v:24:y:2018:i:8:p:963-979
    DOI: 10.1177/1354816618785536
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1354816618785536
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1354816618785536?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ingo Geishecker & Holger Görg, 2013. "Services offshoring and wages: evidence from micro data," Oxford Economic Papers, Oxford University Press, vol. 65(1), pages 124-146, January.
    2. Jean-Jacques Nowak & Sylvain Petit & Mondher Sahli, 2010. "Tourism And Globalization: The International Division Of Tourism Production," Post-Print hal-01831527, HAL.
    3. Dossani, Rafiq & Kenney, Martin, 2007. "The Next Wave of Globalization: Relocating Service Provision to India," World Development, Elsevier, vol. 35(5), pages 772-791, May.
    4. J. Bradford Jensen & Lori G. Kletzer, 2005. "Tradable Services: Understanding the Scope and Impact of Services Outsourcing," Working Paper Series WP05-9, Peterson Institute for International Economics.
    5. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    6. Thijs Raa & Edward Wolff, 2001. "Outsourcing of Services and the Productivity Recovery in U.S. Manufacturing in the 1980s and 1990s," Journal of Productivity Analysis, Springer, vol. 16(2), pages 149-165, September.
    7. Bunyaratavej, Kraiwinee & Hahn, Eugene D. & Doh, Jonathan P., 2007. "International offshoring of services: A parity study," Journal of International Management, Elsevier, vol. 13(1), pages 7-21, March.
    8. Jean-Jacques Nowak & Sylvain Petit & Mondher Sahli, 2013. "Globalization And Tourism: A Theoretical And Empirical Trade Examination," Post-Print hal-01831528, HAL.
    9. Laura Abramovsky & Rachel Griffith, 2006. "Outsourcing and Offshoring of Business Services: How Important is ICT?," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 594-601, 04-05.
    10. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall.
    11. Bernhard Michel & François Rycx, 2012. "Does offshoring of materials and business services affect employment? Evidence from a small open economy," Applied Economics, Taylor & Francis Journals, vol. 44(2), pages 229-251, January.
    12. Rieple, Alison & Helm, Clive, 2008. "Outsourcing for competitive advantage: An examination of seven legacy airlines," Journal of Air Transport Management, Elsevier, vol. 14(5), pages 280-285.
    13. Deborah Winkler, 2010. "Services Offshoring and its Impact on Productivity and Employment: Evidence from Germany, 1995–2006," The World Economy, Wiley Blackwell, vol. 33(12), pages 1672-1701, December.
    14. Tomás F. Espino-Rodríguez & Antonia M. Gil-Padilla, 2007. "The Impact of Outsourcing Strategies on Information Systems Capabilities in the Hotel Industry," The Service Industries Journal, Taylor & Francis Journals, vol. 27(6), pages 757-777, September.
    15. Geishecker, Ingo & Gorg, Holger, 2005. "Do unskilled workers always lose from fragmentation?," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 81-92, March.
    16. Feenstra, Robert C & Hanson, Gordon H, 1996. "Globalization, Outsourcing, and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 240-245, May.
    17. Ekholm, Karolina & Hakkala, Katariina, 2005. "The Effect of Offshoring on Labor Demand: Evidence from Sweden," Working Paper Series 654, Research Institute of Industrial Economics.
    18. Andrea Masini & Zeinep Aksin Karaesman, 2008. "Effective strategies for internal outsourcing and offshoring of business services: An empirical investigation," Post-Print hal-00516139, HAL.
    19. Farok J. Contractor & Vikas Kumar & Sumit K. Kundu & Torben Pedersen, 2010. "Reconceptualizing the Firm in a World of Outsourcing and Offshoring: The Organizational and Geographical Relocation of High‐Value Company Functions," Journal of Management Studies, Wiley Blackwell, vol. 47(8), pages 1417-1433, December.
    20. Hsu, Chao-Che & Liou, James J.H., 2013. "An outsourcing provider decision model for the airline industry," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 40-46.
    21. Alexander Hijzen & Mauro Pisu & Richard Upward & Peter W. Wright, 2011. "Employment, job turnover, and trade in producer services: UK firm‐level evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(3), pages 1020-1043, August.
    22. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 907-940.
    23. Tomás F. Espino-Rodríguez & Pei Chun Lai & Tom Baum, 2012. "Risks and Benefits of Outsourcing Hotel Operations: A Comparison between Scotland and Taiwan," Tourism Economics, , vol. 18(1), pages 95-120, February.
    24. Gorg, Holger & Hanley, Aoife, 2005. "International outsourcing and productivity: evidence from the Irish electronics industry," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 255-269, August.
    25. repec:bla:jomstd:v:47:y:2010:i:s2:p:1417-1433 is not listed on IDEAS
    26. Mar𨀠 Ángeles Cadarso Vecina & Nuria Gómez Sanz & Luis Antonio López Santiago & Mar𨀠 Ángeles Tobarra Gómez, 2012. "Offshoring components and their effect on employment: firms deciding about how and where," Applied Economics, Taylor & Francis Journals, vol. 44(8), pages 1009-1020, March.
    27. Karsten Bjerring Olsen, 2006. "Productivity Impacts of Offshoring and Outsourcing: A Review," OECD Science, Technology and Industry Working Papers 2006/1, OECD Publishing.
    28. Bunyaratavej, Kraiwinee & Hahn, Eugene D. & Doh, Jonathan P., 2008. "Multinational investment and host country development: Location efficiencies for services offshoring," Journal of World Business, Elsevier, vol. 43(2), pages 227-242, March.
    29. Jui-Kou Shang & Wei-Ting Hung & Fei-Ching Wang, 2008. "Service outsourcing and hotel performance: three-stage DEA analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 15(13), pages 1053-1057.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paolo Figini & Mondher Sahli & Laura Vici, 2018. "Advances in tourism economics: The sixth IATE (International Association for Tourism Economics) Conference," Tourism Economics, , vol. 24(8), pages 911-914, December.
    2. Begoña Fuster & Carmen Martínez-Mora & Adelaida Lillo-Bañuls, 2023. "Does Reshoring Generate Employment? A Study on Services Reshoring and Its Intra- and Inter-Sectoral Components," SAGE Open, , vol. 13(3), pages 21582440231, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fuster, Begoña & Lillo-Bañuls, Adelaida & Martínez-Mora, Carmen, 2019. "The effects of service offshoring on employment," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 529-538.
    2. Fuster García, Begoña & Martínez Mora, Carmen, 2013. "Offshoring of Services in Spain: International Fragmentation of Activities or Change in Procurement Sources?/Offshoring de Servicios en España: ¿Fragmentación internacional de actividades o cambio en ," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 655-676, Septiembr.
    3. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
    4. Rosario Crinò, 2009. "Offshoring, Multinationals And Labour Market: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 197-249, April.
    5. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    6. Fuster, Begoña & Lillo-Bañuls, Adelaida & Martínez-Mora, Carmen, 2020. "Reshoring of services and employment," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 233-246.
    7. Rosario Crinò, 2010. "Service Offshoring and White-Collar Employment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(2), pages 595-632.
    8. Eppinger, Peter S., 2019. "Service offshoring and firm employment," Journal of International Economics, Elsevier, vol. 117(C), pages 209-228.
    9. ITO Banri & WAKASUGI Ryuhei & TOMIURA Eiichi, 2008. "Offshoring and Productivity: Evidence from Japanese Firm-level Data," Discussion papers 08028, Research Institute of Economy, Trade and Industry (RIETI).
    10. Schubert, Torben & Baier, Elisabeth & Rammer, Christian, 2016. "Technological capabilities, technological dynamism and innovation offshoring," ZEW Discussion Papers 16-044, ZEW - Leibniz Centre for European Economic Research.
    11. Martin Tobal, 2019. "A model of wage and employment effects of service offshoring," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 303-338, February.
    12. Castellani, Davide & De Benedictis, Luca & Horgos, Daniel, 2013. "Can we really trust offshoring indices?," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 159-172.
    13. Warda, Peter, 2014. "Offshoring, Occupations and Job Tasks: Evidence from Swedish Manufacturing," Working Paper Series in Economics and Institutions of Innovation 375, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    14. Linda Andersson & Patrik Karpaty & Selen Savsin, 2016. "Firm-level effects of offshoring of materials and services on relative labor demand," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 321-350, May.
    15. Linda Andersson & Patrik Karpaty & Selen Savsin, 2017. "Labour Demand, Offshoring and Inshoring: Evidence from Swedish Firm-level Data," The World Economy, Wiley Blackwell, vol. 40(2), pages 240-274, February.
    16. Tillmann Schwörer, 2013. "Offshoring, domestic outsourcing and productivity: evidence for a number of European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 131-149, March.
    17. Iammarino, Simona & Rodríguez-Pose, Andrés & Gagliardi, Luisa, 2015. "Offshoring and the Geography of Jobs in Great Britain," CEPR Discussion Papers 10855, C.E.P.R. Discussion Papers.
    18. Gooris, Julien & Peeters, Carine, 2014. "Home–Host Country Distance in Offshore Governance Choices," Journal of International Management, Elsevier, vol. 20(1), pages 73-86.
    19. Begoña Fuster & Carmen Martínez-Mora & Adelaida Lillo-Bañuls, 2023. "Does Reshoring Generate Employment? A Study on Services Reshoring and Its Intra- and Inter-Sectoral Components," SAGE Open, , vol. 13(3), pages 21582440231, September.
    20. Niccolò Pisani & Joan Enric Ricart, 2016. "Offshoring of Services: A Review of the Literature and Organizing Framework," Management International Review, Springer, vol. 56(3), pages 385-424, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:24:y:2018:i:8:p:963-979. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.