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1 – 10 of over 1000“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…
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.
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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.
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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 same time…
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.
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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 all the…
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.
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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 assembly…
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).
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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, 2004) after…
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.
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Albert Plugge, Shahrokh Nikou, Henry Robben and Henk Kievit
To co-create value through dynamic collaborations, enterprises and their suppliers need to orchestrate the integration of complementary resources when providing business services…
Abstract
Purpose
To co-create value through dynamic collaborations, enterprises and their suppliers need to orchestrate the integration of complementary resources when providing business services. As such enterprises' strategic decision to apply a plural sourcing strategy to establish dynamic collaborations with their suppliers implies that both in-house and outsourced business services should be bundled into a business services portfolio. However, the antecedents that affect a business services portfolio have rarely conceptually been identified.
Design/methodology/approach
Drawing on resource orchestration theory, the authors theoretically developed and empirically validated a business services portfolio conceptual model. The model aims at explaining the critical antecedents to a business services portfolio based on a unique data set, comprising 121 international enterprises with variation in the degree of outsourcing, size, geographies and maturity. Partial least squares structural equation modelling was used to examine the relationships among the antecedents and a business services portfolio.
Findings
The findings show that the antecedent, i.e. plural sourcing strategy, modularised business processes and customer orientation have a direct and significant effect on the enterprises' business services portfolio orchestration. The results of the mediation test indicate that modularised business processes fully mediate the relationships between three independent variables with the orchestration of business services portfolio.
Originality/value
This study is the first to analyse the impact of plural sourcing strategy, modularised business processes and customer orientation on the business services portfolio orchestration from a plural sourcing context. Additionally, it examines the mediating role of modularised business processes in the relationship between the antecedents and business services portfolio orchestration.
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Looks at strategic logistics management and technology strategies for manufacturing and groups the contents under four main headings: logistical future; information challenge;…
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.
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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 to the…
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.
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Grzegorz Grela and Mariusz Hofman
This study aims to examine whether insourcing of processes pays off and verifies key hypotheses regarding the financial ratios of organisations.
Abstract
Purpose
This study aims to examine whether insourcing of processes pays off and verifies key hypotheses regarding the financial ratios of organisations.
Design/methodology/approach
This paper randomly selects and then surveys 1996 organisations, of which 9.5% (190) stated that they used insourcing, 1.9% (37) made a decision to implement insourcing in the near future and 88.6% did not use insourcing. Then, for available firm data (100 insourcing firms and 100 firms without it), the financial statements of the surveyed companies were obtained to compare the most important financial ratios. The financial situation was compared at four-time points. The mean and median values of individual indicators were compared with the significance of relevant statistical tests.
Findings
A U-shaped curve of financial results in the time of enterprises that implemented insourcing and reverse U-shaped curve for enterprises that did not have insourcing are seen. Thus, the insourcing of processes pays off in the long run.
Research limitations/implications
Limitations exist in the generalisation of the results obtained, due to the limited number of samples qualified for analyses (limited reliable financial data).
Practical implications
The research highlights the importance of effective insourcing projects in the long term.
Originality/value
This study is the first to quantify the financial performance of companies that have used insourcing in comparison with a reference group. This paper defines insourcing and contributes to the growing number of studies on insourcing by bringing attention to the financial outcomes in the long run.
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