Abstract
In recent times, the use of offshoring in all its forms is becoming a common practice for the multinational companies. However, the real impact of these strategies on firms performance is still an unknow issue. Based on a sample of 156 european multinational firms in the manufacturing industry, this article analyzes the differences arising from the mode of offshoring implemented on firms productivity and profitability. Additionally, the article studies one of the most controversial aspects regarding the offshoring strategy, which deals with the negative consequences on the employment. Nevertheless, our results show that in terms of productivity and profitability no type of strategy is indeed better than another, therefore the widespread belief considering the use of offshoring as a job destructor practice is called into question.
