Alternative approaches to offshoring and global scanning in MNEs : examples from the Bulgarian software industry

Abstract

The paper explores the offshoring experiences of eleven Bulgarian subsidiaries/partners of foreign MNEs, identifying four different models of role allocation, relationship management and organizational learning. A common feature of the models is the distinction between the parent company’s role in controlling the commercial side of product development, and the Bulgarian subsidiary/partner’s role in generating new knowledge. The key hypothesis emerging from this exploratory study is that MNEs operating in emerging and transition economies are slow to recognise changes in the knowledge dimensions of distance, and hence in the scope for competitive gains and losses linked to global scanning.