Outsourcing and industrial decline

Published on Feb 1, 1992in The Executive
· DOI :10.5465/AME.1992.4274298
Richard A. Bettis19
Estimated H-index: 19
(SMU: Southern Methodist University),
Stephen P. Bradley14
Estimated H-index: 14
(Harvard University),
Gary Hamel24
Estimated H-index: 24
(LBS: London Business School)
Executive Overview The improper use of outsourcing is playing an important role in the continuing competitive decline of many Western firms. Western managers often view outsourcing as a defensive operational measure. The approach tends to be incremental. A whole series of incremental outsourcing decisions, taken individually, may make economic sense, but collectively they may also represent the surrender of the business's capability to compete. However, properly understood and managed as an overall part of strategy, outsourcing can aid competitiveness. This article, based on the authors' research with firms in North America. Europe, and Asia, discusses the manner in which the improper use of outsourcing can destroy the future of a business, and how the proper use of outsourcing can help build competitive advantage.
  • References (0)
  • Citations (435)
Cited By435
Published on May 29, 2019in British Journal of Management2.75
Grigorios Asimakopoulos3
Estimated H-index: 3
(Charles III University of Madrid),
Antonio J. Revilla5
Estimated H-index: 5
(Bath Spa University),
Kremena Slavova (Leonardo)
Published on Oct 1, 2018in Benchmarking: An International Journal
Maqsood Sandhu9
Estimated H-index: 9
(United Arab Emirates University),
Ahm Shamsuzzoha11
Estimated H-index: 11
(Sultan Qaboos University),
Petri Helo25
Estimated H-index: 25
(University of Vaasa)
Purpose The purpose of this paper is to deal with the importance and obstacles of outsourcing strategy in project business in terms of product development perspectives. This strategy is intrinsically analyzed and evaluated with respect to the strategic business environments. Design/methodology/approach The objective of this research is to analyze the advantages and limitations of the outsourcing that have been identified in prior studies. This research has attempted to investigate the performanc...
Anne W. Fuller4
Estimated H-index: 4
(CSUS: California State University, Sacramento)
This paper looks at the vital role of industrial research and development (R&D). The increased outsourcing of industrial R&D is contrasted with a resource-based view of competitive advantage which ...
Published on Sep 1, 2018in Eurasian Business Review
Levan Bzhalava1
Estimated H-index: 1
(FSU: University of Jena),
Uwe Cantner22
Estimated H-index: 22
(FSU: University of Jena)
Prior research on open innovation provides no systematic insight whether firms with internal innovation constraints increase the scale of R&D outsourcing or the number of innovation cooperation partnerships. Motivated by this research gap in the literature, we study the effect of economic- and knowledge-related innovation impediments on a degree of formal openness in innovation. Analyzing a 3 years panel dataset of German manufacturing firms obtained from Mannheim Innovation Panel (MIP) database...
Published on Aug 20, 2018in Journal of Strategy and Management
Olajumoke A. Awe (CCU: Coastal Carolina University), Nisha Kulangara (Baylor University), Demetria Henderson (JMU: James Madison University)
Purpose In the extant literature, the effect of outsourcing activities on the firm performance has been an area of interest for several decades; yet, the body of knowledge lacks a holistic view of this phenomenon. The potential outcomes of outsourcing and its impact on firm performance have not been aggregated in the literature. The purpose of this paper is to conduct a meta-analysis of 51 empirical results using 24 articles to examine the relationship between these variables and firm performanc...
Outsourcing has been identified as one of the key factors for improving companies’ financial performance. Moreover, the procurement of business services has become an important element of companies’ acquisition of external resources. However, there is a lack of evidence linking services outsourcing and performance. Limited prior literature has mostly assumed that this relationship is positive and linear. Our empirical study reveals that firms may be able to increase their performance through...
Published on Jan 1, 2018
Masaaki Kotabe48
Estimated H-index: 48
(TU: Temple University),
Janet Y. Murray25
Estimated H-index: 25
(UMSL: University of Missouri–St. Louis)
Increased global sourcing of manufacturing and service activities from independent suppliers has been a prominent part of the restructuring of firms’ supply chains since the 1980s. Academics and consulting companies have advocated global sourcing as one of the key drivers of superior corporate strategy that has a direct impact on marketing performance, including market share, product quality, customer satisfaction, and brand loyalty, among others. In this chapter we first discuss the trend and n...
Published on Jan 1, 2018in Journal of Business Research4.03
Surender Munjal8
Estimated H-index: 8
(University of Leeds),
Ignacio Requejo6
Estimated H-index: 6
(University of Salamanca),
Sumit K. Kundu23
Estimated H-index: 23
(College of Business Administration)
Abstract This study explores the impact of foreign technology and professional services from outsourcing on firm financial performance. To this aim, we use a sample of 1710 Indian firms over a time period of 13 years, from 2001 to 2013. The empirical evidence obtained shows that the positive effects of technological knowledge and professional services on performance are moderated by firm size, business growth and slack resources. In particular, the benefits of outsourcing in terms of higher prof...
Published on Dec 1, 2017in Technovation5.25
C. Annique Un13
Estimated H-index: 13
(NU: Northeastern University),
Alicia Rodríguez5
Estimated H-index: 5
(Charles III University of Madrid)
Abstract We analyze how research and development (R&D) outsourcing influences product innovation. We propose a separation between learning from R&D outsourcing, whereby the firm improves its ability to innovate by using outsourced R&D directly in new products, from learning by R&D outsourcing, whereby the firm indirectly uses outsourced R&D by integrating it with internal R&D to create new products. Building on the knowledge-based view, we argue that learning from R&D outsourcing is likely to ha...
Published on Dec 1, 2017in Production Engineering
Andreas Strøjer Tynan Schmidt1
Estimated H-index: 1
(DTU: Technical University of Denmark),
Ebou Touray1
Estimated H-index: 1
(DTU: Technical University of Denmark),
Zaza Nadja Lee Hansen4
Estimated H-index: 4
(DTU: Technical University of Denmark)
The purpose of this paper is to address current shortcomings in international location decisions (ILD), which were identified through an exploratory study, by developing a model that addresses previous limitations in research and encapsulate an adequate theories and frameworks. Based on insights from an exploratory study on 17 Danish manufacturing firms and a literature review of over a 100 publications, the scope model was developed with the MECE principles in mind in order to encompass all asp...
View next paperIntelligent Enterprise: A Knowledge and Service Based Paradigm for Industry