LOGIN TO YOUR ACCOUNT

Username
Password
Remember Me
Or use your Academic/Social account:

CREATE AN ACCOUNT

Or use your Academic/Social account:

Congratulations!

You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.

Important!

Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message

CREATE AN ACCOUNT

Name:
Username:
Password:
Verify Password:
E-mail:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Publisher: Springer
Languages: English
Types: Article
Subjects: HD

Classified by OpenAIRE into

ACM Ref: ComputingMilieux_THECOMPUTINGPROFESSION
Outsourcing has gained much prominence in managerial practice and academic discussions in the last two decades or so. Yet, we still do not understand the full implications of outsourcing strategy for corporate performance. Traditionally outsourcing across borders is explained as a cost-cutting exercise, but more recently the core competency argument states that outsourcing also leads to an increased focus, thereby improving effectiveness. However, no general explanation has so far been provided for how outsourcing could lead to deterioration in a firm‟s competence base. We longitudinally analyze three cases of major consumer electronics manufacturers, Emerson Radio from the U.S., Japan‟s Sony and Philips from the Netherlands to understand the dynamic process related to their sourcing strategies. We develop an evolutionary stage model that relates outsourcing to competence development inside the firm and shows that a vicious cycle may emerge. Thus it is appropriate to look not only at how outsourcing is influenced by an organization‟s current set of competences, but also how it alters that set over time. The four stages of the model are offshore sourcing, phasing out, increasing dependence on foreign suppliers, and finally industry exit or outsourcing reduction. The evolutionary stage model helps managers understand for which activities and under which conditions outsourcing across borders is not a viable option.\ud Results suggest that each of these firms had faced a loss of manufacturing competitiveness in its home country, to which it responded by offshoring and then outsourcing production. When a loss of competences occurred, some outsourcing decisions were reversed.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • Grossman, S. J./Hart, O.D., The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration. Journal of Political Economy, 94, 4, 1986, pp. 691-719.
    • Hirschman, A. O., Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States, Cambridge, Mass.: Harvard University Press 1970.
    • Jacobides, M.G./Winter, S.G. The Co-evolution of Capabilities and Transaction Costs: Explaining the Institutional Structure of Production. Strategic Management Journal, 26, 5, 2005, pp. 395-413.
    • Knickerbocker, F.T., Oligopolistic Reaction and Multinational Enterprise. Boston: Division of Research, Graduate School of Business, Harvard University 1973.
    • Kenney, M./Florida, R. The Transfer of Japanese Management Styles in Two US Transplant Industries: Autos and Electronics, Journal of Management Studies, 32, 6, 1995, pp. 789-802.
    • Kotabe, M., Corporate Product Policy and Innovative Behavior of European and Japanese Multinationals: An Empirical Investigation, Journal of Marketing, 54, April 1990, pp. 19-33.
    • Kotabe, M., Efficiency vs. Effectiveness Orientation of Global Sourcing Strategy: A Comparison of U.S. and Japanese Multinational Companies, Academy of Management Executive, 12, 4, 1998, pp. 107-119.
    • Leiblein, M. J./Reuer, J. J./Dalsace, F., Do Make or Buy Decisions Matter? The Influence of Organizational Governance on Technological Performance, Strategic Management Journal, 23, 9, 2002, pp. 817-833.
    • SinoCast China IT Watch, Sony to Reform Production Management Model in China, October 6, 2003.
    • Teece, D. J., Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing, and Public Policy, Research Policy, 15, 6, 1986, pp. 285-305.
    • Teece, D.J., Managing Intellectual Capital: Organizational, Strategic, and Policy Dimensions, Oxford, Oxford University Press 2000.
    • Teece, D. J./Pisano, G./Shuen, A., Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18, 7, 1997, pp. 509-533.
    • TV Digest, Grundig Charges Push Philips Back Into Red, February 17, 1997a, pp. 12-13.
    • TV Digest, Philips Plans 2 DVD Players for Europe, June 30, 1997b, pp.14-15.
    • TV Digest, Weekly News, March - December 1988, September 21, 1998.
    • Vernon, R., The Location of Economic Activity,” in J.H. Dunning, ed., Economic Analysis and the Multinational Enterprise, London: George Allen & Unwin 1974.
    • Wernerfelt, B., A Resource-based View of the Firm, Strategic Management Journal, 5, 1984, pp. 272-280.
    • Wilson, D., Ready to turn the key: Asia's Contract Manufacturers are Poised for Japanese hand-offs, Electronic Business Asia, May 2001, http://www.eb-asia.com/EBA/issues/0105/0105c-story.htm.
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article