Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review
Corporate risk and external sourcing: A study of Scandinavian multinational firms. / Aabo, Tom; Pantzalis, Christos; Sørensen, Helle et al.
In: International Business Review, Vol. 25, No. 6, 2016, p. 1297–1308.Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review
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TY - JOUR
T1 - Corporate risk and external sourcing: A study of Scandinavian multinational firms
AU - Aabo, Tom
AU - Pantzalis, Christos
AU - Sørensen, Helle
AU - Toustrup, Malene Teilmann
N1 - Corporate risk Internationalization External sourcing Foreign suppliers Real options
PY - 2016
Y1 - 2016
N2 - External sourcing from foreign suppliers is an important aspect of thefirm’s internationalization. However, data on such sourcing is available from neither databases nor annual reports. Thus, the corporate risk implications of such sourcing have not been studied previously. We obtain the necessarydata by surveying Scandinavian non-financial firms. We find that highly international firms reduce corporate risk by externally sourcing from foreign suppliers both compared to sourcing from own production facilities abroad (due to superior flexibility) and compared to domestic sourcing (due to offsettingcash flows). Our results are statistically significant, are economically meaningful, and have important policy implications.
AB - External sourcing from foreign suppliers is an important aspect of thefirm’s internationalization. However, data on such sourcing is available from neither databases nor annual reports. Thus, the corporate risk implications of such sourcing have not been studied previously. We obtain the necessarydata by surveying Scandinavian non-financial firms. We find that highly international firms reduce corporate risk by externally sourcing from foreign suppliers both compared to sourcing from own production facilities abroad (due to superior flexibility) and compared to domestic sourcing (due to offsettingcash flows). Our results are statistically significant, are economically meaningful, and have important policy implications.
KW - Corporate risk; Internationalization; External sourcing; Foreign suppliers; Real options
U2 - 10.1016/j.ibusrev.2016.04.002
DO - 10.1016/j.ibusrev.2016.04.002
M3 - Journal article
VL - 25
SP - 1297
EP - 1308
JO - International Business Review
JF - International Business Review
SN - 0969-5931
IS - 6
ER -