Abstract

This study investigates the effects of offshoring on judgment quality in a management accounting context (i.e., capital budgeting). The effects of offshoring on judgment quality are understudied and might explain the ineffective and inefficient use of information in offshoring arrangements (Srikanth and Puranam, 2011). A 3x2 between-subject experiment was conducted where participants were assigned to one of three experimental conditions: onshore team, offshore team, or no team. Two dependent variables were measured for judgment quality: effectiveness and efficiency. My results suggest that offshoring may have detrimental effects on efficiency. However, I also find that offshoring does not affect effectiveness.

Document Type

Article

Publication Date

2014

Publisher Statement

Copyright © 2014 Nova Publishers. Article first pulished in International Journal of Management Accounting Research 3, no. 2 (2014).

The definitive version is available at: https://www.novapublishers.com/catalog/product_info.php?products_id=48675

Full citation:

Selby, Daniel. "The Effects of Offshoring on Judgment Quality in a Management Accounting Task." International Journal of Management Accounting Research 3, no. 2 (2014).

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