Distancing Bonus Or Downscaling Loss? The Changing Livelihood of Us Online Workers in Times of COVID-19

We draw on data from the Online Labour Index and interviews with freelancers in the United States securing work on online platforms, to illuminate effects of the COVID-19 pandemic. The pandemic's global economic upheaval is shuttering shops and offices. Those able to do so are now working remotely from their homes. They join workers who have always been working remotely: freelancers who earn some or all of their income from projects secured via online labour platforms. Data allow us to sketch a first picture of how the initial months of the COVID-19 pandemic have affected the livelihoods of online freelancers. The data shows online labour demand falling rapidly in early March 2020, but with an equally rapid recovery. We also find significant differences between countries and occupations. Data from interviews make clear jobs are increasingly scarce even as more people are creating profiles and seeking freelance work online.

The Global Platform Economy: A New Offshoring Institution Enabling Emerging-Economy Microproviders

Global online platforms match firms with service providers around the world, in services ranging from software development to copywriting and graphic design. Unlike in traditional offshore outsourcing, service providers are predominantly one-person microproviders located in emerging-economy countries not necessarily associated with offshoring and often disadvantaged by negative country images. How do these microproviders survive and thrive? We theorize global platforms through transaction cost economics (TCE), arguing that they are a new technology-enabled offshoring institution that emerges in response to cross-border information asymmetries that hitherto prevented microproviders from participating in offshoring markets. To explain how platforms achieve this, we adapt signaling theory to a TCE-based model and test our hypotheses by analyzing 6 months of transaction records from a leading platform. To help interpret the results and generalize them beyond a single platform, we introduce supplementary data from 107 face-to-face interviews with microproviders in Southeast Asia and Sub-Saharan Africa. Individuals choose microprovidership when it provides a better return on their skills and labor than employment at a local (offshoring) firm. The platform acts as a signaling environment that allows microproviders to inform foreign clients of their quality, with platform-generated signals being the most informative signaling type. Platform signaling disproportionately benefits emerging-economy providers, allowing them to partly overcome the effects of negative country images and thus diminishing the importance of home country institutions. Global platforms in other factor and product markets likely promote cross-border microbusiness through similar mechanisms.

Human Side of Collaborative Partnerships

The research on collaborative partnerships has accumulated a vast body of knowledge, which has assisted us with comprehending several complex organizational phenomena, including mergers and acquisitions, strategic alliances, joint ventures, and entrepreneurial partnerships. Yet, the existing studies have not paid sufficient attention to the human side factors. We join the current conversation within the microfoundations perspective of management and organization studies by suggesting that investigating the human side factors as the microfoundations of collaborative partnerships can advance our collective understanding of the phenomena in important ways. This article has three general objectives. First, we show that collaborative partnerships have been a long-standing issue in management and organization studies and provide an overview of the puzzles that informed and motivated this special issue. Second, we highlight the key insights and contributions of the articles included in this special issue by reviewing their theoretical underpinnings, methodological approaches, and findings. Finally, we outline a future research agenda on the human side of collaborative partnerships that can help advance management and organization studies.

Understanding the decision to offshore human resource activities: a coevolutionary perspective

Purpose

Offshoring has been studied widely in the literature on strategic management and international business. However, apart from its consideration as an administrative activity, scant attention has been paid to the offshoring of the human resource (HR) function. Research in this regard has instead focussed on outsourcing (Reichel and Lazarova, 2013). The purpose of this paper is to achieve a better understanding of companies’ decisions to offshore HR activities. It adapts the outsourcing model of Baron and Kreps (1999) by including the HR offshoring phenomenon and a dynamic perspective.

Design/methodology/approach

While the analysis is mostly conceptual, the authors ground the author’s arguments in offshoring data from the Offshoring Research Network, to explore whether the drivers for offshoring HR differ from the drivers for offshoring other administrative activities. The idiosyncrasy of the HR function is supported by the authors’ exploratory analysis and also by the descriptive case of a multinational and its experience with offshoring.

Findings

A coevolutionary model is proposed for understanding the behaviour of companies offshoring their HR activities. This study contends that companies should address their decision to offshore HR activities from a dynamic perspective, being aware of three processes that are in constant change: the evolution of the HR function, the evolution of service providers, and the evolution of offshoring decisions.

Originality/value

This study seeks to make a threefold contribution to the international business, strategy, and HR management disciplines.