Search results

1 – 10 of over 1000
To view the access options for this content please click here
Article
Publication date: 24 August 2010

Niels Peter Mols

Concurrent sourcing” is a term used by Parmigiani to describe the phenomenon where a firm simultaneously buys and makes the same good or service. The purpose of this…

Abstract

Purpose

Concurrent sourcing” is a term used by Parmigiani to describe the phenomenon where a firm simultaneously buys and makes the same good or service. The purpose of this paper is to develop propositions that suggest how concurrent sourcing affects performance.

Design/methodology/approach

Based on transaction cost, agency, neoclassical economic, knowledge‐based, and resource‐based theory, it is proposed to show how concurrent sourcing affects performance.

Findings

The paper argues that concurrent sourcing improves performance when firms face a combination of volume uncertainty, technological uncertainty, performance uncertainty, non‐decomposability, transaction‐specific investments, and strong internal and external capabilities.

Research limitations/implications

The paper maps the relationships between concurrent sourcing and performance and discusses how these relationships can be modelled. The propositions and discussion offer researchers a starting‐point for further research.

Practical implications

The propositions that are developed suggest that managers should consider using concurrent sourcing when they face problems caused by volume uncertainty, technological uncertainty, performance uncertainty, non‐decomposability, and asset specificity. Concurrent sourcing can also be a way to exploit both strong internal capabilities and external suppliers' strong capabilities.

Originality/value

The main contribution is a number of propositions, explanations, and discussions regarding how concurrent sourcing affects performance of the market and the hierarchy.

Details

Journal of Business & Industrial Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

To view the access options for this content please click here
Article
Publication date: 5 April 2013

Stephen Kim, Namwoon Kim, Jae H. Pae and Leslie Yip

This study aims to examine the strategic implications and managerial outcomes of the concurrent use of cooperation and competition in vertical channel relationships.

Abstract

Purpose

This study aims to examine the strategic implications and managerial outcomes of the concurrent use of cooperation and competition in vertical channel relationships.

Design/methodology/approach

This study employs a structured questionnaire to gather data regarding vertical channel relationships in China.

Findings

Whereas the academic literature has emphasized cooperation between channel members because of the interdependence between them, in reality, retailers may accept competition as just another part of doing business with suppliers.

Research limitations/implications

The outcome variables used may not be comprehensive. In particular, the authors choose the flexibility of channel resources to stand for private benefits and joint benefits to represent common benefits, and though these variables certainly represent the intended benefits of the ambidextrous strategy, it remains to be seen whether other benefits may emerge for the exchange parties in vertical relationships.

Practical implications

Using an ambidextrous strategy does not damage relationship quality, though it certainly does not enhance it. This view is based on the notion that an ambidextrous strategy at least does not harm either common or private benefits. Therefore, exchange parties using the ambidextrous strategy should not experience a relationship that is worse than that which results when they use cooperation or competition alone. The results of the current study indicate that this view reflects reality more accurately.

Originality/value

The value of the current study centers on the application of a conceptual framework regarding ambidextrous strategy to vertical channel relationships in a developing economy.

Details

Journal of Business & Industrial Marketing, vol. 28 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

To view the access options for this content please click here
Article
Publication date: 29 July 2014

Daniel Nordigården, Jakob Rehme, Staffan Brege, Daniel Chicksand and Helen Walker

The purpose of this paper is to investigate an underexplored aspect of outsourcing involving a mixed strategy in which parallel production is continued in-house at the…

Abstract

Purpose

The purpose of this paper is to investigate an underexplored aspect of outsourcing involving a mixed strategy in which parallel production is continued in-house at the same time as outsourcing occurs.

Design/methodology/approach

The study applied a multiple case study approach and drew on qualitative data collected through in-depth interviews with wood product manufacturing companies.

Findings

The paper posits that there should be a variety of mixed strategies between the two governance forms of “make” or “buy.” In order to address how companies should consider the extent to which they outsource, the analysis was structured around two ends of a continuum: in-house dominance or outsourcing dominance. With an in-house-dominant strategy, outsourcing complements an organization's own production to optimize capacity utilization and outsource less cost-efficient production, or is used as a tool to learn how to outsource. With an outsourcing-dominant strategy, in-house production helps maintain complementary competencies and avoids lock-in risk.

Research limitations/implications

This paper takes initial steps toward an exploration of different mixed strategies. Additional research is required to understand the costs of different mixed strategies compared with insourcing and outsourcing, and to study parallel production from a supplier viewpoint.

Practical implications

This paper suggests that managers should think twice before rushing to a “me too” outsourcing strategy in which in-house capacities are completely closed. It is important to take a dynamic view of outsourcing that maintains a mixed strategy as an option, particularly in situations that involve an underdeveloped supplier market and/or as a way to develop resources over the long term.

Originality/value

The concept of combining both “make” and “buy” is not new. However, little if any research has focussed explicitly on exploring the variety of different types of mixed strategies that exist on the continuum between insourcing and outsourcing.

Details

International Journal of Operations & Production Management, vol. 34 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Article
Publication date: 19 September 2008

Sheshadri Vyankatrao Kulkarni and Mamata Jenamani

This paper aims to present a strategic framework for make‐or‐buy (MoB) decision‐making process and a case study based on the framework. This framework can be applied to…

Abstract

Purpose

This paper aims to present a strategic framework for make‐or‐buy (MoB) decision‐making process and a case study based on the framework. This framework can be applied to all the scenarios of MoB decision‐making that includes making decisions for new components and reevaluating the decisions for presently in‐sourced or outsourced components.

Design/methodology/approach

Based on this study of an Indian Automobile Company and review of the literature the paper proposes a strategic framework for MoB decision‐making. Unlike previous academic attempts, where a framework is developed first based on the existing theories followed by illustration through case studies, our approach starts with a case study, the paper then proposes a framework that best suits the company's need. Later the paper discusses the specific features of the framework that makes it applicable to other manufacturing sectors.

Findings

The sourcing decision‐making for any firm is a complex and dynamic process where, after stipulated period firms have to reevaluate their decisions. Existing frameworks treat both fresh and reevaluated decisions alike. It is found that the need for a framework with separate provision for outsourcing decision reevaluation. The paper identifies partial outsourcing as a strategic option to avoid supplier opportunism. It also explicitly suggests the exact decision point where risk evaluation is necessary during MoB decision‐making process.

Originality/value

The proposed framework takes a detailed and critical look at actual outcomes in terms of costs, competences and risk. Three important considerations adopted from the literature and incorporated in the proposed framework, makes it unique: provision for reevaluating the MoB decision, consideration of partial outsourcing as a strategic option other than purely making or buying, identification of decision points where risk evaluation is necessary.

Details

Strategic Outsourcing: An International Journal, vol. 1 no. 3
Type: Research Article
ISSN: 1753-8297

Keywords

To view the access options for this content please click here
Article
Publication date: 23 February 2010

Ricardo Aláez‐Aller and Juan Carlos Longás‐García

The purpose of this paper is to provide an explanation and set out the reasons for the change in supply strategy from sole sourcing to split sourcing at an automotive…

Abstract

Purpose

The purpose of this paper is to provide an explanation and set out the reasons for the change in supply strategy from sole sourcing to split sourcing at an automotive assembly plant. In that context, this paper highlights the advantages of split sourcing over earlier strategies.

Design/methodology/approach

The information on which this paper is based comes chiefly from two sets of qualitative interviews staged in 1996 and 2003 at automotive supplier plants in northern Spain. Particular attention is paid to suppliers working with sequenced deliveries located close to the Volkswagen plant in Navarre. The vehicle model manufactured changes between the interviews. A comparison of the two pieces of fieldwork reveals changes in the plant's supply strategy.

Findings

A comparison between the supply strategies of a plant for two successive, distinct models provides empirical support for the idea that supply strategies evolve. The need is also demonstrated for the first time to consider individual plants expressly, since significant cost savings can be made at this level at two key times: when switching models and during model life‐times. These cost savings depend clearly on the type of buyer‐supplier relationship established at plant level.

Practical implications

The most significant conclusion for practitioners concerns the need to design a supply strategy from a dynamic approach that specifically considers the plant level.

Originality/value

The basic contribution of this paper is that it examines changes over time in outsourcing decisions in the automotive industry by incorporating the viewpoint of individual plants. Following this approach, the evolution from sole sourcing to split sourcing is described and interpreted. The paper also stresses the need to analyse procurement strategies in evolutionary terms (i.e. as being reconfigured in line with experience).

Details

International Journal of Operations & Production Management, vol. 30 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Book part
Publication date: 4 August 2014

Anna Sabidussi

This chapter investigates how small- and medium-sized enterprises and large firms decide the sourcing strategies to explore and exploit. This study adopts a qualitative…

Abstract

This chapter investigates how small- and medium-sized enterprises and large firms decide the sourcing strategies to explore and exploit. This study adopts a qualitative methodology and reports on the insights derived from interviews with 35 companies and 2 experts. A series of propositions are derived, and these propositions are used to propose a height–distance view of exploration and exploitation. The implications for theory and managerial practice are presented in the concluding remarks.

Details

Exploration and Exploitation in Early Stage Ventures and SMEs
Type: Book
ISBN: 978-1-78350-655-2

Keywords

To view the access options for this content please click here
Book part
Publication date: 13 August 2014

Frank Elter, Paul N. Gooderham and Svein Ulset

This paper revisits Bartlett and Ghoshal’s transnational theory of the MNC in relation to multi-domestic MNCs. We argue that the aggregate level of analysis adopted by…

Abstract

This paper revisits Bartlett and Ghoshal’s transnational theory of the MNC in relation to multi-domestic MNCs. We argue that the aggregate level of analysis adopted by Bartlett and Ghoshal is unhelpful for identifying significant changes in multi-domestic MNCs at the level of discrete functions. We argue that a more disaggregated level of analysis is required. Our analysis of two cases of multi-domestic MNCs that have undertaken the global integration of their locally distributed purchasing functions indicates that while significant change to the purchasing function has occurred, at the aggregate level both MNCs remain multi-domestic. In both cases the decision to integrate local purchasing was regarded as having more obvious benefits than integrating other functions such as marketing. While both of our case multi-domestic MNCs may in future choose to integrate other functions and develop into full-fledged transnational companies we argue that there is no inevitability to this. Indeed global integration may cease with the purchasing function. A second theme in this paper is that we argue that Bartlett and Ghoshal’s transnational theory has a biased view of what constitutes effective governance mechanisms for achieving global integration, local responsiveness and worldwide learning and that it would greatly benefit from a more balanced application of hierarchical and relational governance mechanisms.

Details

Orchestration of the Global Network Organization
Type: Book
ISBN: 978-1-78350-953-9

Keywords

Content available
Article
Publication date: 29 June 2020

Andreas Norrman and Andreas Wieland

This invited article explores current developments in supply chain risk management (SCRM) practices by revisiting the classical case of Ericsson (Norrman and Jansson…

Abstract

Purpose

This invited article explores current developments in supply chain risk management (SCRM) practices by revisiting the classical case of Ericsson (Norrman and Jansson, 2004) after 15 years, and updating its case description and analysis of its organizational structure, processes and tools for SCRM.

Design/methodology/approach

An exploratory case study is conducted with a longitudinal focus, aiming to understand both proactive and reactive SCRM practices using a holistic perspective of a real-life example.

Findings

The study demonstrates how Ericsson's SCRM practices have developed, indicating that improved functional capabilities are increasingly combined across silos and leveraged by formalized learning processes. Important enablers are IT capabilities, a fine-grained and cross-functional organization, and a focus on monitoring and compliance. Major developments in SCRM are often triggered by incidents, but also by requirements from external stakeholders and new corporate leaders actively focusing on SCRM and related activities.

Research limitations/implications

Relevant areas for future research are proposed, thereby increasing the knowledge of how companies can develop SCRM practices and capabilities further.

Practical implications

Being one of few in-depth holistic case studies of SCRM, decision-makers can learn about many practices and tools. Of special interest is the detailed description of how Ericsson reactively responded to the Fukushima incident (2011), and how it proactively engaged in monitoring and assessment activities. It is also exemplified how SCRM practices could continuously be developed to make them “stick” to the organization, even in stable times.

Originality/value

This is one of the first case studies to delve deeper into the development of SCRM practices through taking a longitudinal approach.

Details

International Journal of Physical Distribution & Logistics Management, vol. 50 no. 6
Type: Research Article
ISSN: 0960-0035

Keywords

To view the access options for this content please click here
Article
Publication date: 1 March 1997

Eric Sandelands

Looks at strategic logistics management and technology strategies for manufacturing and groups the contents under four main headings: logistical future; information…

Abstract

Looks at strategic logistics management and technology strategies for manufacturing and groups the contents under four main headings: logistical future; information challenge; 21st century manufacturing; 21st century service industries. Aims to look at the many challenges facing logistics practitioners and researchers.

Details

International Journal of Physical Distribution & Logistics Management, vol. 27 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

To view the access options for this content please click here
Article
Publication date: 10 July 2017

Juyeon Ham, Byounggu Choi and Jae-Nam Lee

Many studies have investigated the relationship between the adoption of open innovation and performance in large firms. However, limited research is available with regard…

Abstract

Purpose

Many studies have investigated the relationship between the adoption of open innovation and performance in large firms. However, limited research is available with regard to the use of open innovation in small and medium enterprises (SMEs). SMEs are important because of their contribution to innovation in almost all economies. The purpose of this paper is to extend the current literature by focusing on SMEs. Using complementarity and knowledge-based theories, this study develops three hypotheses to identify the effect of knowledge sourcing approaches for innovation on SMEs’ innovation performance.

Design/methodology/approach

Surveys collected from 196 SMEs in Korea were analyzed using the supermodularity function to test the hypotheses.

Findings

Results indicate that an external knowledge-oriented approach has no significant effect, whereas an internal knowledge-oriented (i.e. closed) approach has a positive effect on innovation performance. Interestingly, this study found that open innovation has a negative effect on SMEs’ innovation performance (i.e. both internal knowledge-oriented and external knowledge-oriented approaches have a substitutive relationship).

Originality/value

This study sheds new light on open innovation and knowledge management research by identifying the relationship between knowledge sourcing approaches for innovation, and innovation performance in SMEs. Practical implications highlight that open innovation could impede SMEs’ innovation performance.

Details

Industrial Management & Data Systems, vol. 117 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

1 – 10 of over 1000