Shi Qiu
Current Organizations / Institutes
The organizations/institutes from the scholar's latest article
Shi Qiu has a total of 2 co-authors. Here are the top co-authors by number of shared publications:
- Nikolay Osadchiy
Goizueta Business School, Emory University, Atlanta, Georgia 30322
1 shared publication - Sridhar Seshadri
Gies College of Business, University of Illinois, Urbana-Champaign, Illinois 61820
1 shared publication
Latest Publications
- Open Access
- 21 August 2024
- Published by Emerald Publishing in Foundations and Trends® in Technology, Information and Operations Management
- Vol. 18 (1) , 84-102
Outsourcing as a Risk Management Mechanism for Domestic Manufacturing Capacity Investment
We propose two perspectives on the shift from U.S. domestic manufacturing to Asia in 1990–2011: production cost arbitrage and the management of supply-demand mismatch. In our model, a firm facing demand uncertainty decides between investing in domestic or overseas production capacity. The model predicts greater investment overseas when the cost arbitrage is high, switching cost is low, demand volatility is high, and the systematic risk in demand is above a certain threshold. Empirically, we observe strong support for the cost arbitrage motive in 1990–2000 and the risk management motive in 2001–2011, i.e., after China’s entry into the WTO. We estimate that investing into risk mitigation could have saved more than 400,000 U.S. manufacturing jobs.
- 21 August 2024
- Published by Emerald Publishing in Foundations and Trends® in Technology, Information and Operations Management
- Vol. 18 (1) , 84-102
Open AccessOutsourcing as a Risk Management Mechanism for Domestic Manufacturing Capacity Investment
We propose two perspectives on the shift from U.S. domestic manufacturing to Asia in 1990–2011: production cost arbitrage and the management of supply-demand mismatch. In our model, a firm facing demand uncertainty decides between investing in domestic or overseas production capacity. The model predicts greater investment overseas when the cost arbitrage is high, switching cost is low, demand volatility is high, and the systematic risk in demand is above a certain threshold. Empirically, we observe strong support for the cost arbitrage motive in 1990–2000 and the risk management motive in 2001–2011, i.e., after China’s entry into the WTO. We estimate that investing into risk mitigation could have saved more than 400,000 U.S. manufacturing jobs.