Captive offshoring services for SMEs in Poland: The role of mutual trust and cultural aspects


The study examines one of the governance models of offshoring and empirically tests relationships and differences in culture between employees within one company, from two different countries. The study outlines the current position of Poland as an example of destination for entrepreneurs deciding to offshore their services. This research joins case study method, together with surveys and personal observation. The qualitative method aims to investigate relations within the company and examine frequencies of employees’ behaviours. Quantitative research method is used to identify the frequencies of qualitative results. The study proved that building common goals and positive relations facilitates working relations. Regular communication and maintaining trust between the countries is a crucial factor for the effective offshoring process. The originality of this work lies in focusing on cultural aspects of offshoring such as cultural distance and cross-culture communication. Further research into the issue of mutual trust in the context of offshoring processes is recommended.

A.T.Kearney (2014). A wealth of choices: From anywhere on Earth to no location at all. The 2014 A.T. Kearney Global Services Location IndexTM. Retrieved from: (10.01.2016).

Axinn, W.G., & Pearce, L.D. (2009). Mixed Method Data Collection Strategies. Ch. 1: Motivations for Mixed Method Social Research (1-27). Cambridge: Cambridge University Press.

Dembiński, M. (2013). Poland Continues to Climb Doing Business Rankings. Warszawa: British Polish Chamber of Commerce.

Doing Business 2015. (2014) Going Beyond Efficiency. A World Bank Group Flagship Report. 2014 International Bank for Reconstruction and Development.

Doktór, W. (2013). Poland, Quietly Leading – An overview about Poland as destination for ITO and BPO services. The Outsourcing Journal. Retrieved from: (10.01.2016).

Drogendijk, R., & Zander, L. (2010). The Past, Present and Future of International Busi-ness & Management Advances in International Management, In: Walking the Cul-tural Distance. In Search of Direction Beyond Friction. Emerald Group Publishing Limited.

Ertel, D., Enlow S., & Bubman, J. (2010). Managing Offshoring Relationships: Govern-ance in Global Deals. Boston: Vantage Partners. Retrieved from: (15.01.2016).

Fariñas, J.C., López, A., & Martín-Marcos, A. (2014). Assessing the Impact of Domestic Outsourcing and Offshoring on Productivity at the Firm Level. Applied Economics, 46(15), 1814-1828. doi: 10.1080/00036846.2014.884704.

Garcia-Prieto, P., & Point, S. (2009). Cultural Differences in Offshoring: Turning the Threat of Diversity Around. Duke University Offshoring Research Conference, Dur-ham, US, April 5-7.

Gera, V. (2013). Poland Emerging as Major European Outsourcing Hub. The Big Story AP.

Greenaway, D. (2007). Offshoring and the UK Economy. Leverhulme Centre for Research on Globalisation and Economic Policy, The University of Nottingham

Gregory, R., Prifling, M., & Beck, R. (2008). Managing Cross-Cultural Dynamics In It Offshore Outsourcing Relationships: The Role Of Cultural Intelligence. Second In-formation Systems Workshop on Global Sourcing.

Halliyavar, N.R. (2013). Communication and Culture. Golden Research Thoughts, 3(1),


Handfield, R. (2006). A Brief History of Outsourcing. Supply Chain Resource Coopera-tive. Retrieved from: (10.01.2016).

Hatzichronoglou, T. (2007). Offshoring and Employment: Trends and Impacts. Paris: OECD Publishing.

Hurmerinta, L., & Nummela, N. (2011). Mixed-method case studies in international busi-ness research. In: R. Piekkari & C. Welch (Eds.), Rethinking the Case Study in In-ternational Business and Management Research (210-228). Cheltenham, UK: Ed-ward Elgar Publishing.

Jakobson, R. (1960). Closing statement: Linguistics and poetics. In: T. Sebeok (Ed.), Style in Language (pp. 350-377). Cambridge: The MIT Press.

Khan, S.U., & Azeem, M.I. (2014). Intercultural challenges in offshore software devel-opment outsourcing relationships: an exploratory study using a systematic literature review. IET Software, 8(4), 161-173. doi: 10.1049/iet-sen.2013.0012.

KPMG (2009). Personnel Security in Offshore Centres. Summary of Findings. KPMG LLP.

Młyniec, A., & Polkowski, M. (2016). Office Market Profile: Poland Q4 2015. Warszawa: Jones Lang LaSalle. Retrieved from: (30.01.2016).

Mohiuddin, M., & Su, Z. (2013). Manufacturing Small and Medium Size Enterprise’s Offshore Outsourcing And Competitive Advantage: An Exploratory Study On Ca-nadian Offshoring Manufacturing SMEs. The Journal of Applied Business Research, 29(4), 1111-1130.

Mol, M.J. (2014) What we know about Outsourcing. Cambridge: Cambridge University Press.

Nielsen, B.B., & Nielsen, S. (2008). International Diversification Strategy and Firm Per-formance: A Multi-level. Analysis of Firm and Home Country Effects. Academy of International Business Best Paper Proceedings.

Oshri, I., Kotlarsky, J., & Willcocks, L. (2009). The Handbook of Global Outsourcing and Offshoring. Hampshire: Palgrave Macmillan.

Outsource Magazine (2010). UK skills gap fuels offshoring. Retrieved from: (15.01.2016).

PAIiIZ (2015) How to do Business: Investors’ Guide-Poland. Warszawa: PAIiIZ and Deloitte Advisory.

Persson, J.S., (2013). The Cross-Cultural Knowledge Sharing Challenge: An Investigation of the Co-location Strategy in Software Development Offshoring. Grand Successes and Failures in IT. Private and Public Sectors: IFIP WG 8.6 International Working Conference on Transfer and Diffusion of IT, TDIT 2013, Bangalore, India, June 27-29, 2013. Proceedings, 402, 310-325. Springer Publishing Company.

Rai, U., & Rai, S.M. (2008). Business Communication. Mumbai India: Himalaya Publish-ing House.

Sass, M., & Fifekova, M. (2011). Offshoring and Outsourcing Business Services to Central and Eastern Europe: Some Empirical and Conceptual Considerations. European Planning Studies, 19(9), 1593-1609.

Satyanarayan, P. (2008). Modern Business Communication. Global Media.

Slepniov, D., Brazinskas, S., & Wæhrens, B.V. (2013). Nearshoring practices. Baltic Journal of Management, 8(1), 5-26.

Smith, L., & Mounter, P. (2005). Effective Internal Communication. Kogan Page Limited.

Sousa, C.M.P., Bradley, F. (2006). Cultural Distance and Psychic Distance: Two Peas in a Pod? Journal of International Marketing, 14(1), 49-70.

United Nations Conference on Trade and Development (2013). World Investment Report 2013: Global Value Chains: Investment and Trade for Development. New York and Geneva.

United States Government Accountability Office (2006). Offshoring: U.S. Semiconductor and Software Industries Increasingly Produce in China and India. GAO-06-423 In-ternational Trade

Warsaw Business Journal Group (2013). Made in Poland. A Guide to Polish Export 2013. Warszawa: PARP.

Woods, D. (2010). Employers are struggling to fill their vacancies according to a report from the CIPD and KPMG. HR Magazine. Retrieved from: (10.01.2016).

Yin, R. K. (2009). Case Study Research: Design and Methods. 4th Ed.

Published : 2016-10-19

HalembaM., & BabińskaD. (2016). Captive offshoring services for SMEs in Poland: The role of mutual trust and cultural aspects. International Entrepreneurship Review, 2(2), 213-232. Retrieved from

Maria Halemba
University of Economics in Katowice  Poland
Danuta Babińska 
University of Economics in Katowice  Poland

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

1. The author agrees to publish his article free of charge in the journal "International Entrepreneurship Review" (IER) in the language of the above publication (English). The editorial staff reserves the right to shorten texts and to change titles.

2. The journal allows the authors to keep their copyrights (the copyright) in accordance with the license: Creative Commons CC-BY-ND 4.0.

Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) only the final version of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access). We advise to use any of the following research society portals:

- ResearchGate
- Selected Works
- Academic Search