ABSTRACT This paper aims to analyze participation by Spanish industrial firms in the marked process of international production modularity or fragmentation that is taking place on a global scale. It studies whether firms use offshoring (that is, transfer activities abroad), what type of activities are offshored, the type of offshoring used, the main target countries, the reasons for offshoring and the benefits it brings. Qualitative research into four Spanish business groups shows that they all use offshoring, mostly outsourcing manufacturing to international suppliers. When choosing offshore location, these groups aim to achieve not only cost savings but also advantages from the agglomeration of the agents with which they need to interact, as well as access to new markets and relevant resources (infrastructure, auxiliary industry, production capacity, technology and know-how).
Cite this paper
nullS. Valle, L. Avella and F. García, "International Modularity and Offshoring in Spanish Industry," Modern Economy, Vol. 2 No. 4, 2011, pp. 680-690. doi: 10.4236/me.2011.24076.
 Z. Fernández, “Desintegración e Integración Internacional de la Cadena de Valor,” Información Comercial Espa?ola ICE, No. 838, September-October 2007, pp. 147-156.
B. L. Kedia and D. Mukherjee, “Understanding Offshoring: A Research Framework Based on Disintegration, Location and Externalization Advantages,” Journal of World Business, Vol. 44, No. 3, 2008, pp. 250-261. HHHUdoi:org/10.1016/j.jwb.2008.08.005U
P. Ghemawat, “Redefiniendo la Globalización la Import-
ancia de las Diferencias en un Mundo Globalizado,” Deusto, Barcelona, 2008.
G. Grossman and E. Rossi-Hansberg, “The rise of offshoring: It’s not wine for cloth anymore. In Federal Reserve Bank of Kansas City, ” The New Economic Geography: Effects and Policy Implications, Jackson Hole, Wyoming, August, 2426, 2006.
J. A. Alonso, “Fragmentación Productiva, Multilocalización y Proceso de Internacionalización de la Empresa,” Información Comercial Espa?ola ICE, No. 838, September-October 2007, pp. 23-39.
C. Jahns, E. Hartmann and L. Bals, “Offshoring Dimensions and Diffusion of a New Business Concept,” Journal of Purchasing & Supply Management, No. 12, 2006, pp. 218-231.
W. Lankford and F. Parsa, “Outsourcing: A Primer,” Management Decision, No. 37, 1999, pp. 310-316.
M. Robinson and R. Kalakota, “Offshore Outsourcing-Business Models,” ROI and Best Practices, Mivar, 2004.
A. Y. Lewin, S. Massini and C. Peeters, “Why Are Companies Offshoring Innovation? The Emerging Global Race for Talent,” Journal of International Business Studies, Vol. 40, No. 6, 2009, pp. 901-925.
S. Berger, “Desde las Trincheras Cómo se Enfrentan Empresas de Todo el Mundo a las Fronteras de la Economía Global,” Empresa Activa, Barcelona, 2006.
W. J. Henisz and A. Delios, “Uncertainty, Imitation and Plant Location: Japanese Multinational Corporations 1990-1996,” Administrative Science Quarterly, Press Alpharetta, Vol. 46, 2001, pp. 443-475.
B. Kogut and S. J. Chan, “Technological Capabilities and Japanese Foreign Direct Investment in the United States,” Review of Economics and Statistics, No. 73, 1991, pp. 401-413.
W. Shan, and J. Song, “Foreign Direct Investment and the Sourcing of Technological Advantage: Evidence from the Biotechnology Industry,” Journal of International Business Studies, Vol. 28, No. 2, 1997, pp. 267- 284.
T. Wesson, “A Model of Asset-Seeking Foreing Direct Investment Driven by Demand Conditions,” Revue Canadienne des Sciences de l′Asministration, Vol. 16, No. 1, 1999, pp. 1-10.
K. M. Eisenhardt, “Building Theories from Case Study Research,” Academy of Management Review, Vol. 14, No. 4, 1989, pp. 532-550.
R. K. Yin, “Case Study Research: Design and Methods,” Sage, London, 1989.
C. Voss, N. Tsikriktsis and M. Frohlich, “Case Research in Operations Management,” International Journal of Operations & Production Management, Vol. 22, No. 2, 2002, pp. 195-219. HHHUdoi:org/10.1108/01443570210414329U
S. K. Chetty, “The Case Study Method for Research in Small and Medium Sized Firms,” International Small Business Journal, Vol. 5, No. 1, 1996, pp. 73-85.