Search results

1 – 10 of over 1000
Article
Publication date: 11 March 2024

Hua Ke and Yaqin Zhou

In this paper, the authors study the entry and outsourcing strategies of manufacturer while considering the brand spillover effect resulting from outsourcing. The supply chain…

Abstract

Purpose

In this paper, the authors study the entry and outsourcing strategies of manufacturer while considering the brand spillover effect resulting from outsourcing. The supply chain comprises two manufacturers: one being the entrant with a strong brand, and the other as the incumbent with a weak brand. The entrant decides whether and how to enter the market.

Design/methodology/approach

Stackelberg game is applied to study the optimal strategies for the manufacturers. This paper conducts a comparative analysis on four situations, yielding conclusions and managerial insights.

Findings

The results show that, for the entrant, there is no need to worry about the brand spillover effect in the outsourcing process, which is very interesting and counterintuitive. To get further, the authors find the reason: The spillover effect causes the entrant’s equilibrium retail price to grow faster than the wholesale price. They also prove that a stronger brand effect empowers the entrant to challenge industry barriers, while the impact of the brand spillover effect is the opposite. For the incumbent who acts as the weak party in this issue, it is demonstrated that the optimal choice is to continue selling when facing the encroachment and outsourcing call from the entrant.

Originality/value

Differing from previous studies, the authors notice the brand spillover effect caused by outsourcing when studying company’s entry strategy. They further divide the brand effect into two parts, one of which does not exhibit a spillover.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 2 April 2024

Dut Van Vo, Phú Gia Minh Phạm and Tri Giac Nguyen

This study aims to study the moderating effects of private ownership and government support on the relationship between outsourcing and product innovation in entrepreneurial…

Abstract

Purpose

This study aims to study the moderating effects of private ownership and government support on the relationship between outsourcing and product innovation in entrepreneurial ventures in a transition economy.

Design/methodology/approach

The data of 10,296 Vietnamese entrepreneurial ventures from the four rounds of the survey conducted by the General Statistics Office (GSO) of Vietnam to investigate the moderating effects of private ownership and government support on the association between outsourcing and entrepreneurial ventures’ product innovation performance. The Probit regression model is employed to estimate such associations.

Findings

Our research uncovered that the impact of outsourcing on the likelihood of product innovation is more significant for entrepreneurial operations characterized by a substantial degree of private ownership and government backing as opposed to those without.

Research limitations/implications

The results of our research indicated that the resource-based perspective and extended resource-based view (ERBV) are essential in examining the impact of gaining resources or skills from external sources on the growth of entrepreneurial enterprises. These ideas have significance and importance not just in industrialized economies but also in countries undergoing transition. Our findings suggest that entrepreneurial enterprises should have the ability to manage a wide range of resources and make decisions about which activities should be handled internally and which should be delegated to other parties.

Practical implications

Our findings also imply that entrepreneurial ventures should be able to control many resources and choose which tasks should be performed in-house and which should be outsourced to third parties.

Originality/value

By adopting and leveraging the resource-based view (RBV) and extended resource-based views (ERBV), our study developed a theoretical model about private ownership and government support for moderate outsourcing’s impact on entrepreneurial innovation in a transition economy.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 7 November 2023

Tesfaye Hailu and Abdella Kosa Chebo

To examine the development of research into the relationship between business process outsourcing (BPO) and innovation, a bibliometric methodology utilizing quantitative…

Abstract

Purpose

To examine the development of research into the relationship between business process outsourcing (BPO) and innovation, a bibliometric methodology utilizing quantitative analytical methodologies was used. With the aid of a visualization analysis of scientific publications, this study also assessed the state of BPO and innovation practices.

Design/methodology/approach

Using the Web of Science database, articles on BPO and innovation that published between 1992 and 2022 were retrieved. Records that had been extracted were examined in terms of publication year, nation, journal, subject area, authors and affiliations with organizations. The research on acupuncture for pain relief was visualized using the VOSviewer application.

Findings

An analysis of 219 original and review papers found that during the past 30 years, the overall number of publications has fluctuated constantly. The London University, the Copenhagen Business School and the London School of Economics were the institutions that produced the most articles in this topic. The three main categories of research that emerged from a network analysis based on the co-occurrence of keywords are innovation, outsourcing and performance.

Practical implications

A BP-innovation model must be created, and BPO must go beyond operational duties to incorporate management-wide shared strategic decisions in order to ensure improved performance of the firms. BPO enables a company's management to share knowledge and expertise about the strategic difficulties of outsourcing. A variety of technological and non-technological resources must also be considered when integrating an information technology (IT) infrastructure into BPO decisions in order to achieve greater performance.

Originality/value

Validity of the paper can be justified by it contribution to the existing knowledge. First, linking BPO and innovation – by integrating the arguments of various academics, the study unifies the disparate components and contentious discussions in the relationship between BPO and innovation. Second, this study highlights a research trend, significant studies, relevant terms and concepts in the real world. Third, the study provides future researchers with a tip for statistically analyzing BPO, particularly in light of innovation.

Details

Business Process Management Journal, vol. 30 no. 1
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 13 November 2023

Oliver Tannor, Felix Dordaa and John Yaw Akparep

The aim of this study is to examine the agency problems that arise between retail property owners and outsourced facility management (FM) service vendors in Ghana.

Abstract

Purpose

The aim of this study is to examine the agency problems that arise between retail property owners and outsourced facility management (FM) service vendors in Ghana.

Design/methodology/approach

This study was carried out using telephone and face-to-face interviews. Nine facility managers (n =9) and six retail property owners (n = 6) purposively selected participated in the interviews. The responses from the interviews were analysed using content analysis. To begin with the analysis, the recorded audio for each respondent during the interviews was transcribed to augment what was written during the interviews. The next step was the development of a coding framework where each of the agency problems was assigned unique codes and grouped under themes. Each response was assigned a predefined code based on the agency problems identified in the literature. The research team discussed the consistency of the thematic codes assigned to each of the responses to ensure that each response was captured under the appropriate agency problem theme it best represents.

Findings

The results showed that agency problems in FM outsourcing in the Ghanaian retail sector are related to disagreement on expenditure associated with maintenance and repairs and improper tenant information sharing and use by FM service providers. Based on the findings, it is recommended that property owners explore the mixed approach to FM to mitigate the risks of complete outsourcing of FM services. It is also recommended that a clear path on how tenant information can be shared be pre-agreed in FM contracts.

Originality/value

This study provides new literature relating to agency problems in outsourcing and may be the first of its kind for FM in the Ghanaian retail industry. The findings could serve as a starting point for service providers and their principals to find common grounds to understand each other and mitigate the agency problems that could arise and their overall impact on performance.

Details

Journal of Corporate Real Estate , vol. 26 no. 1
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 15 November 2023

Xiaozhen Wang, Hanna Lee, Kihyun Park and Gukseong Lee

The study aims to explore the conditional relationships between product modularization and new product development (NPD) efficiency. It is postulated that R&D outsourcing plays an…

Abstract

Purpose

The study aims to explore the conditional relationships between product modularization and new product development (NPD) efficiency. It is postulated that R&D outsourcing plays an important mediating role. Furthermore, the level of competency trust is considered an essential factor in moderating the indirect effect of product modularization on NPD efficiency via R&D outsourcing practices.

Design/methodology/approach

Drawing on transaction cost economics theory, this study suggests a moderated mediation model that addresses how product modularization effectively promotes NPD efficiency via outsourcing practices. The hierarchical regression and PROCESS macro model were conducted to test the hypotheses based on survey data from 273 manufacturing firms in China.

Findings

Product modularization enhances NPD efficiency directly and indirectly through the external collaboration of R&D outsourcing. Furthermore, the role of product modularization in R&D outsourcing practices is more effective when the competency trust in R&D outsourcing partners is high.

Originality/value

By showing the critical role of external collaboration, this study provides valuable insights into how manufacturing firms utilize product modularization to achieve desired NPD performance more effectively.

Details

Journal of Manufacturing Technology Management, vol. 35 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 10 October 2023

Pham Thi Bich Ngoc, Pham Thi Hoa Tien, Pham Dinh Long and Huynh Quoc Vu

The paper aims to investigate the difference in total factor productivity (TFP) among those firms with and without outsourcing in a developing country like Vietnam. Also, it…

Abstract

Purpose

The paper aims to investigate the difference in total factor productivity (TFP) among those firms with and without outsourcing in a developing country like Vietnam. Also, it explores the effect of outsourcing activities on total factor productivity with a specified concentration on the Vietnamese small and medium-sized enterprises (SMEs).

Design/methodology/approach

The panel data set of SMEs used in this study was originated from biannual surveys conducted under the collaboration between educational organizations and government agencies: Stockholm School of Economics (SSE), Department of Economics – the University of Copenhagen, the Institution of Labor Studies and Social Affairs (ILSSA) in the Ministry of Labor, Invalids and Social Affairs (MOLISA). In this study, the model is developed based on the production function in accordance with the model of Girma and Görg (2004). The firms’ TFP is the difference between the actual and the predicted output as with the approach by Levinsohn and Petrin (2003).

Findings

This study finds out that firms with outsourcing have higher total factor productivity than those without outsourcing activities. In addition, the more firms spend on outsourcing, the higher total factor productivity they can gain. Outsourcing to SMEs in a developing country can significantly increase its TFP by means of either maintaining core competencies or searching external resources in conducting some internal activities.

Originality/value

Although outsourcing has been widely applied by large firms, the research studying its impact on productivity at firm level is limited. Especially, this study can shed light on the impact for the case of SMEs in a developing economy.

Details

Fulbright Review of Economics and Policy, vol. 3 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 7 July 2023

Riffat Hasan and Oliver Kruse

The purpose of this paper is to analyse and investigate how intensified regulatory requirements related to outsourcing have influenced and changed the outsourcing activities of…

Abstract

Purpose

The purpose of this paper is to analyse and investigate how intensified regulatory requirements related to outsourcing have influenced and changed the outsourcing activities of German financial institutions.

Design/methodology/approach

The study involved interviewing 11 outsourcing experts in the German financial sector, including four of the five largest banks in Germany. In coding and analysing the collected data, this study adopted the approach of a qualitative content analysis framework.

Findings

The study found that the revised legal requirements have had a significant and potentially negative impact on the efficiency of outsourcing, leading to a necessity for German financial institutions to internally realign their outsourcing managements. The study further revealed practical realigned methods German financial institutions executed to meet the legal requirements.

Originality/value

The impact, meaning and relevance of legal requirements in the outsourcing environment of German financial institutions has been relatively under-researched from a qualitative perspective and focused on other primary fields of investigation like outsourcing decisions and outcomes. This study has, by adopting a qualitative approach, addressed the identified gap by providing first-hand insights and new knowledge.

Article
Publication date: 9 August 2022

Jingyi Lai, Yongcheng Fu, Yongqiang Chen and Bo Du

Outsourcing is a common practice that is often adopted to reduce costs and enhance capabilities. The underlying logic of a firm's outsourcing strategy is not always evident due to…

Abstract

Purpose

Outsourcing is a common practice that is often adopted to reduce costs and enhance capabilities. The underlying logic of a firm's outsourcing strategy is not always evident due to multiple antecedents with interacting effects. This study identifies critical factors that influence outsourcing strategies and reveals their interactions with empirical evidence from Chinese construction firms.

Design/methodology/approach

The quantitative decision-making trial and evaluation laboratory (DEMATEL) method was applied to analyze the interrelationships among the antecedents of project outsourcing strategies. First, 24 experts from 13 Chinese construction firms were invited to evaluate and score the influence of each factor on the other. Second, the graph theory and matrix tools of DEMATEL were used to quantitatively obtain the causality among factors and the prominence of each factor within the system.

Findings

Among the antecedents, a firm's pursuit of cost efficiency, identity, technological capability and contracting capability are the most prominent factors influencing project outsourcing strategies. For the interactions among these factors, this study reveals that the focal firm's technological capability significantly influences its contracting capability, and they jointly influence the firm's outsourcing practices, the selection of outsourcing vendors and, eventually, its pursuit of cost efficiency. Moreover, legal restrictions in the institutional environment strongly shape this capability–cost efficiency relationship.

Originality/value

Twelve critical factors following different theoretical perspectives at varying levels of analysis were identified from the literature review. By revealing the interrelationships among these factors, this study develops a holistic framework that integrates the transaction cost and capability perspectives for understanding project outsourcing strategies embedded in different institutional environments.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 7 November 2022

Bangyi Li, Juan Tang, Zhi Liu and Bengang Gong

The purpose of this paper is to investigate remanufacturing operational strategies considering uncertain quality of end-of-life (EOL) products and differential consumers’…

Abstract

Purpose

The purpose of this paper is to investigate remanufacturing operational strategies considering uncertain quality of end-of-life (EOL) products and differential consumers’ willingness-to-pay (WTP) for new products and provide suggestions on the remanufacturing mode selection for the original equipment manufacturer (OEM).

Design/methodology/approach

This study considers three remanufacturing modes, i.e. in-house, outsourcing and authorization modes. By establishing and comparing decision models of three modes from the perspectives of profit, consumer surplus and environment, the optimal remanufacturing mode is discussed.

Findings

The results suggest that if the OEM’s remanufacturing capability is high, the in-house mode brings to the highest environmental performance, OEM’s profit and consumer surplus. Otherwise, the outsourcing mode (authorization) is the best benefit to environment (consumers if the unit production cost of new products is not too high). As for the preference of two decision-makers to outsourcing and authorization modes, if the difference of consumers’ WTP for new products is low, the OEM prefers the outsourcing mode; otherwise, the OEM prefers the authorization mode. The preference of the third-party remanufacturer (TPR) to remanufacturing mode is affected by consumers’ WTP for remanufactured products, WTP difference for new products and remanufacturing quality level standard.

Practical implications

These results can provide operational insights into how to select remanufacturing mode when the quality of EOL products is uncertain and consumers’ WTP for new products is different under three remanufacturing modes.

Originality/value

This paper is among the first to investigate the joint effects of EOL products’ uncertain quality and differential consumers’ WTP for new products on the operational strategies and performance under different remanufacturing modes.

Details

Kybernetes, vol. 53 no. 1
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 7 February 2022

Bankole Osita Awuzie, Zwelinzima P. Mcwari, Progress Shingai Chigangacha, Clinton Ohis Aigbavboa, Theo C. Haupt and Lovelin Obi

An increase in outsourcing of consultancy services has been observed during procurement and delivery of public-sector infrastructure projects. However, the incidence of project…

Abstract

Purpose

An increase in outsourcing of consultancy services has been observed during procurement and delivery of public-sector infrastructure projects. However, the incidence of project failure has continued unabated despite this shift by public-sector entities. Also, there appears to be limited literature focussed on seeking to provide the rationale governing the decision to outsource or insource consultancy services by public-sector organisations. The purpose of this study was to appraise the performance of public-sector projects in which consultancy services have been outsourced or insourced. These are the gaps which this study was undertaken to fill.

Design/methodology/approach

A grounded theory methodology (GTM) research design was adopted based on the nature of evidence sought and gathered from a Provincial Department of Public Works and Infrastructure (PDPWI) in South Africa. Data was obtained from a mixture of semi-structured interviews and project-specific documents spanning a five-year period and was analysed according to the procedures associated with GTM. Accordingly, open coding, axial coding and pattern matching were carried out at several intervals to develop categories and themes.

Findings

The findings of the study showed the absence of a structured approach within the PDPWI for facilitating decisions pertaining to outsourcing or insourcing consultancy services within construction projects. Furthermore, the study established that both approaches yielded similar results across all performance facets of cost, time and quality. In addition, a detailed insight into the steps required for the successful application of GTM in built environment research has been provided in the study.

Originality/value

Limited studies have been undertaken to compare the impact of either outsourced or insourced services on the organisational and project performance. This was the gap to which the study reported in this paper was undertaken to contribute.

Details

Journal of Engineering, Design and Technology , vol. 22 no. 2
Type: Research Article
ISSN: 1726-0531

Keywords

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