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Article
Publication date: 14 February 2019

Pooja Thakur-Wernz

The purpose of this study is to examine backsourcing, which refers to the full or partial re-internalization of a firm’s previously outsourced activity. Researchers have primarily…

Abstract

Purpose

The purpose of this study is to examine backsourcing, which refers to the full or partial re-internalization of a firm’s previously outsourced activity. Researchers have primarily focused on the drivers of backsourcing, but this paper builds on that prior research to develop a typology of backsourcing.

Design/methodology/approach

Drawing on transaction cost economics and the resource-based view (RBV), the paper posits that firms backsource because of two factors – changes in their short-run total costs and changes in their internal capabilities for re-internalization. By using the interactions between these two factors, the authors propose four types of backsourcing.

Findings

The paper presents a typology for backsourcing: profitability-backsourcing, operational-backsourcing, strategic-backsourcing and failure-backsourcing. Only one (failure-backsourcing) of these four types of backsourcing suggests failure, while the other three indicate strategic flexibility. The authors also present mini-cases to support the typology.

Research limitations/implications

The paper presents a conceptual model of backsourcing. This is a limitations of the study and further research is needed to empirically test the proposed model.

Practical implications

From a managerial perspective, this framework can be used as a decision-making tool for firms that are considering backsourcing. Given the complexity involved and the perceived stigma, decision-makers may find it difficult to backsource. Thus, a framework to avoid biases leading to decision-making errors, as well as to understand if backsourcing is a viable option, is needed.

Originality/value

This paper is one of the first to present a typology of backsourcing which can be used to understand when it is a failure of the outsourcing strategy and when it is a signal of strategic flexibility. This paper contributes to the growing stream of research on backsourcing by moving the literature beyond determinants and bringing attention to the outcomes of backsourcing. Additionally, the proposed framework can be used as a tool by decision-makers to examine whether backsourcing is favorable for their firm based on costs and capabilities for re-internalization.

Details

Journal of Global Operations and Strategic Sourcing, vol. 12 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 16 February 2015

Claus Jørgensen, Ole Uhrskov Friis and Christian Koch

This paper aims to focus on how organisational capabilities, enhancing the dynamic capability perspective, evolve during a more than five-year offshoring process in four Danish…

Abstract

Purpose

This paper aims to focus on how organisational capabilities, enhancing the dynamic capability perspective, evolve during a more than five-year offshoring process in four Danish small- and medium-sized enterprises (SMEs). The strategic decision to offshore some manufacturing activities meant that capabilities were ruptured and had to be rebuilt.

Design/methodology/approach

The empirical investigation took the form of qualitative case studies with a longitudinal orientation focussing in on a few events in the four cases (strategic change in the sourcing configuration) as a process research design (Pettigrew, 1990; Van de Ven, 2007). Interviews were transcribed and coded in NVivo.

Findings

The four cases followed distinct trajectories, but they all changed their routines regarding how to handle knowledge, including both technology and human resources. A need for specific human resources acting as boundary spanners arose, transforming both intra- and inter-organisational practices in all four cases. More complex activities were moved offshore to enhance the dynamic capabilities of the companies regarding both product development as well as specific processes, thereby transforming/reconfiguring the organisational capabilities of the companies. However, in the two small-sized cases, more complex/less routinised activities were backsourced, demonstrating a significant problem over time with the development of sufficient organisational resources to maintain seizing and sensing capabilities within these companies in comparison with the two other medium-sized cases.

Research limitations/implications

The fact that most of the data were generated from an inside-out perspective, taking the point of departure in the core firms, can be viewed as a limitation. The authors’ data on the wider network are also limited. Finally, the authors’ interviews are conducted relatively infrequently when considering the length of the process.

Practical implications

The four longitudinal cases show that the longer-term offshoring journey does not involve a single path or a single best practice. The cases show captive as well as outsourcing arrangements and even enterprise transformations. The cases demonstrate a common focus on finding and nurturing core suppliers and core business processes, which can be characterised as continual learning and development of organising capabilities.

Originality/value

The study contributes to the growing body of research into dynamic (organisational) capabilities in an offshoring and SME context.

Details

Strategic Outsourcing: An International Journal, vol. 8 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 20 February 2017

Heiko Gewald and Leonie Schäfer

The purpose of this study is to derive a prioritized list of the present and future topics that sourcing managers in large companies are mostly concerned with using a rigorous…

Abstract

Purpose

The purpose of this study is to derive a prioritized list of the present and future topics that sourcing managers in large companies are mostly concerned with using a rigorous methodological approach.

Design/methodology/approach

The Delphi method was chosen to derive the list. An initial list of topics was compiled based on a literature review combined with the results of an expert panel. This input was prioritized and extended by sourcing managers over three iterations.

Findings

The findings indicate that outsourcing remains a hot topic, even after almost 25 years of academic research. The authors identified four clusters where outsourcing scholars who are interested to provide insights and guidance for practitioners should focus their attention: managerial decisions (selection of the right partner and ability of the company to outsource parts of their business), managing the service provider (governance issues and relationship management and alignment), managerial responsibilities (integrated risk management and adherence to regulation and compliance) and increased flexibility (cloud computing and multi-vendor arrangements).

Research limitations/implications

The findings are only directly transferrable to large companies using experienced sourcing managers in Germany.

Originality/value

The findings may serve as input in formulating a research agenda which helps to align scholars’ focus and practitioners’ problems.

Details

Journal of Global Operations and Strategic Sourcing, vol. 10 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 30 December 2020

Andrea Gelei and Magdolna Sass

This paper aims to trace the performance consequences of within-lead firm reconfigurations of global value chains with respect to business performance and upgrading.

Abstract

Purpose

This paper aims to trace the performance consequences of within-lead firm reconfigurations of global value chains with respect to business performance and upgrading.

Design/methodology/approach

The study is based on two detailed company case studies which are analysed in an organizational design approach.

Findings

Lead firms systematically separate and internalize high value-added activities in otherwise low value-added processes leading to constant reconfigurations and reorganizations of the production processes in global value chains. The study finds that similar reconfigurations may trigger different changes and changes and performance consequences may differ considerably according to the level of analysis. The two cases help to understand the specific roles of the outsourcing and offshoring decisions in shaping actual global value chain structures.

Originality/value

The consequences of within-lead firm reconfigurations are rarely analysed in the literature.

Details

Competitiveness Review: An International Business Journal , vol. 31 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Content available
Article
Publication date: 23 May 2018

Levente Szász, Krisztina Demeter and Harry Boer

Abstract

Details

Journal of Manufacturing Technology Management, vol. 29 no. 4
Type: Research Article
ISSN: 1741-038X

Open Access
Article
Publication date: 13 December 2023

David Feltenius and Jessika Wide

Since 2009 Swedish municipalities may apply the Act on System of Choice (LOV) in, among other things, eldercare. About half of the 290 Swedish municipalities have chosen this…

Abstract

Purpose

Since 2009 Swedish municipalities may apply the Act on System of Choice (LOV) in, among other things, eldercare. About half of the 290 Swedish municipalities have chosen this within home-care services for older citizens, thus creating conditions for a welfare mix where private and public providers compete. Some of these municipalities later made decisions to abolish LOV. This article aims to analyse the arguments put forward by municipal politicians to abolish LOV and discusses if the case of abandoning LOV represents a case of re-municipalization.

Design/methodology/approach

Qualitative method was used to analyse decision protocols and media materials from 20 Swedish municipalities that had abolished LOV in home-care services.

Findings

The article shows that politics and ideology seem to have only a limited significance in abolishing LOV. The most important arguments found in the empirical materials were instead pragmatic and related to the transaction costs: in smaller municipalities about the weak position of private providers and in larger municipalities about reported cases of welfare crime and extensive needs to control and review. In smaller municipalities, LOV was replaced by public monopoly and in larger municipalities by other types of procurements.

Originality/value

With its focus on eldercare in party-dominated municipalities, the article adds knowledge to the literature on drivers of re-municipalization but also discusses possible delimitations of the concept of re-municipalization.

Details

International Journal of Public Sector Management, vol. 37 no. 2
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 16 February 2010

Mohamed Alsudairi and Yogesh K. Dwivedi

In recent years a large number of studies have appeared on information systems (IS)/information technology (IT) outsourcing related issues but scattered in a number of distantly…

3331

Abstract

Purpose

In recent years a large number of studies have appeared on information systems (IS)/information technology (IT) outsourcing related issues but scattered in a number of distantly related publishing outlets which may hamper the use of such published resources and repetition of research conducted by various researchers. The purpose of this paper is to conduct a systematic survey of the literature pertaining to research on IS/IT outsourcing.

Design/methodology/approach

The research aim was accomplished by extracting information on a number of relevant variables by conducting a review of 315 articles on IS/IT outsourcing published between 1992 and 2008.

Findings

The analysis is presented by listing and illustrating subject category, journals, year of publications and country, frequently published authors, productive institutions, the trend of collaborative nature (co‐author analysis) of research, the impact/influence of published research; topics/research issues and utilised methods, and the challenges and limitations of existing research.

Practical implications

Results of this research may have implications for both private and public sector organizations interested in outsourcing IS/IT services and applications, and various stakeholders of academic publishing (namely, researchers, journal editors, reviewers and universities) research on IS/IT outsourcing.

Originality/value

The primary value of this paper lies in extending the understanding of evolution and patterns of outsourcing research.

Details

Journal of Enterprise Information Management, vol. 23 no. 2
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 3 August 2020

Susanna Böling, Johan M. Berlin, Helene Berglund and Joakim Öhlén

Considering the great need for palliative care in hospitals, it is essential for hospital staff to have palliative care knowledge. Palliative consultations have been shown to have…

Abstract

Purpose

Considering the great need for palliative care in hospitals, it is essential for hospital staff to have palliative care knowledge. Palliative consultations have been shown to have positive effects on in-hospital care. However, barriers to contact with and uptake of palliative consultation advice are reported, posing a need for further knowledge about the process of palliative consultations. The purpose of this study therefore was to examine how palliative consultations in hospitals are practised, as perceived by consultants and health care professionals on receiving wards.

Design/methodology/approach

Focus groups with palliative care consultation services, health care personnel from receiving wards and managers of consultation services. Interpretive description and constant comparative method guided the analysis.

Findings

Variations were seen in several aspects of practice, including approach to practice and represented professions. The palliative consultants were perceived to contribute by creating space for palliative care, adding palliative knowledge and approach, enhancing cooperation and creating opportunity to ameliorate transition. Based on a perception of carrying valuable perspectives and knowledge, a number of consultation services utilised proactive practices that took the initiative in relation to the receiving wards.

Originality/value

A lack of policy and divergent views on how to conceptualise palliative care appeared to be associated with variations in consultation practices, tentative approaches and a bottom-up driven development. This study adds knowledge, implying theoretical transferability as to how palliative care consultations can be practised, which is useful when designing and starting new consultation services.

Details

Journal of Health Organization and Management, vol. 34 no. 6
Type: Research Article
ISSN: 1477-7266

Keywords

Article
Publication date: 17 July 2009

Doren Chadee and Revti Raman

The purpose of this paper is to review the development of the empirical literature on international outsourcing of information technology services (ITS) over the 1992‐2007 period…

4344

Abstract

Purpose

The purpose of this paper is to review the development of the empirical literature on international outsourcing of information technology services (ITS) over the 1992‐2007 period and to identify future research areas.

Design/methodology/approach

A sample of 78 empirical academic publications on international outsourcing of ITS conducted between 1992 and 2007 across 46 scholarly journals constitutes the main data for analytical purposes. The sample is compiled following extensive electronic searches of the main academic databases. After clustering the studies in the sample according to their main research areas, a narrative approach is used to review developments in each cluster and to identify emerging research areas.

Findings

Four main areas of research are identified, namely outsourcing decision, outsourcing management (OSM), outsourcing outcome and the role of offshore service providers (OSPs). The review suggests that research efforts to date have been predominantly on outsourcing decision and OSM, mostly from the perspective of clients. Future research opportunities exist in the areas of outsourcing strategy and performance, the behaviour and performance of OSPs particularly within the context of firms from less‐developed countries competing globally, and the nature of competition among OSPs both within and among countries.

Originality/value

This is the first review which focuses on empirical studies of outsourcing for ITS. This paper identifies several gaps in the literature and points to the need for more research on outsourcing from the perspective of OSPs.

Details

International Marketing Review, vol. 26 no. 4/5
Type: Research Article
ISSN: 0265-1335

Keywords

Book part
Publication date: 11 May 2010

Heike Proff

The growing modularization of complex products encourages the division of labor in industry. End product manufacturers outsource production of individual components to large…

Abstract

The growing modularization of complex products encourages the division of labor in industry. End product manufacturers outsource production of individual components to large module suppliers, saving on costs in the short term. In the medium term, however, they sacrifice competences. The competitive strategy they choose – either cost leadership or differentiation – determines how this conflict is resolved. This paper examines the shift in competences to module suppliers, and the likely reactions of end product manufacturers, particularly those pursuing a differentiation strategy. The discussion begins at a general level, and then focuses on the automotive industry as an example. The paper derives potential strategic actions going forward based on transaction cost theory and core competency theory, and conducts a content analysis to examine them empirically.

Details

A Focussed Issue on Identifying, Building, and Linking Competences
Type: Book
ISBN: 978-1-84950-990-9

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