Search results

1 – 10 of over 8000
Article
Publication date: 17 February 2012

Shereazad Jimmy Gandhi, Alex Gorod and Brian Sauser

The purpose of this research is so that project managers can use a systemic approach to prioritizing the risks of outsourcing including an understanding of the external factors

4573

Abstract

Purpose

The purpose of this research is so that project managers can use a systemic approach to prioritizing the risks of outsourcing including an understanding of the external factors that could affect the prioritization.

Design/methodology/approach

A survey was designed by the authors and distributed to 2,500 outsourcing professionals from different organizations and the hypotheses were tested using the data from these surveys. The logic for forming the hypothesis is discussed for each hypothesis and so are the demographics of the respondents

Findings

External factors such as the type of technology involved, type of market targeted, location of outsourcing and the amount of experience the outsourcing professional had, did affect the prioritization of the outsourcing risks. Furthermore, trends were identified among the ranking of the outsourcing risks.

Research limitations/implications

One of the constraining factors of this research, as in the majority of empirical research initiatives, was the limited sample size, which could potentially affect the rating. An increased sample size could have also provided the researchers with a more detailed insight into the interrelationships between the various outsourcing risks.

Originality/value

For the first time, the outsourcing risks have been prioritized using a systemic approach. The systemic approach has been used in the financial industry while analyzing risk but the authors have applied it to prioritization of outsourcing risks. This includes understanding the interrelationships between the risks and also the effect that external factors can have on the prioritization of those risks.

Book part
Publication date: 7 October 2015

Md Nuruzzaman

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry…

Abstract

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.

This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78441-764-2

Keywords

Article
Publication date: 20 February 2017

Payam Hanafizadeh and Ahad Zare Ravasan

This paper aims to provide an in-depth analysis toward understanding the critical factors in affecting information technology outsourcing (ITO) decision in the context of…

Abstract

Purpose

This paper aims to provide an in-depth analysis toward understanding the critical factors in affecting information technology outsourcing (ITO) decision in the context of e-banking services in Iran. Within the recent decades, outsourcing IT processes and services as a strategic decision has been widely adopted throughout industries. In this regard, scholars have investigated a wide range of factors influencing ITO decision in various contexts.

Design/methodology/approach

This research examines a conceptual model that shows impacts of different attributes including technological, organizational and environmental on the Iranian banks’ ITO decision. To validate the research hypotheses, the partial least squares (PLS) technique for data analysis, is utilized.

Findings

The results of this study derived from the theoretical discussion of hypotheses illustrated that 9 of 11 assumed factors (i.e. perceived tangible benefits, perceived intangible benefits, perceived risks, perceived information security/privacy, complete contract establishment capability, making strong trustworthy relationship capability, uncertainty in business requirements, external pressure and market maturity) influence ITO decision in the target industry. The findings also confirmed that the size of the bank and competitors’ absorptive capacity did not exert any influence on their service outsourcing decision.

Research limitations/implications

The sampling was confined to experts in the banking industry. Also, the results of this study reflect Iranian perspective. Consequently, generalization based on this sample would be interpreted cautiously and a limitation of the context should be kept in mind.

Originality/value

Insights into policymaking for suitable drivers to outsource e-banking services in the context of a less developed country are the main outcomes of the current research.

Details

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

Keywords

Article
Publication date: 12 February 2018

Payam Hanafizadeh and Ahad Zare Ravasan

A multitude of factors influence the information technology outsourcing (ITO) decision. Organizations must systematically evaluate these factors prior to making the ITO decision…

1719

Abstract

Purpose

A multitude of factors influence the information technology outsourcing (ITO) decision. Organizations must systematically evaluate these factors prior to making the ITO decision. The purpose of this paper is to provide an in-depth analysis toward understanding the critical factors in affecting ITO decision in the context of e-banking services.

Design/methodology/approach

The effect of technological, organizational, and environmental attributes on e-banking services outsourcing decision were investigated in this paper. The study was carried out using the quantitative research methodology based on a survey of 23 banks. The partial least squares technique was utilized as the method of data analysis.

Findings

The results of the data analysis illustrated that nine out of 11 assumed factors (i.e. perceived complexity, perceived cost, service observability to the client, cultural fit between client and supplier, perceived loss of organizational knowledge, prior outsourcing experience, external pressure, market volatility, and suppliers’ power) influence the outsourcing decision of e-banking services. The findings also confirmed that the nature of the service and client IT capabilities did not exert any influence on the outsourcing decision.

Originality/value

The study is among the first kind of ITO decision research which empirically investigates the effect of service observability, cultural fit, perceived loss of organizational knowledge, external pressure, market volatility, and suppliers’ power amongst other factors on the ITO decision. The findings from this study provide insights for the banks and service providers to better understand the factors affecting the outsourcing decisions of e-banking services in contexts of less developed countries. Implications based on a specific situation of the Iranian banking sector is also proposed.

Details

Journal of Enterprise Information Management, vol. 31 no. 1
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 17 May 2018

Daniel Fierro Hernandez and Abubaker Haddud

The increased complexity of global supply chains and its inherent risk requires the re-evaluation of the SCRM discipline as a source of value creation for shareholders. This paper…

1947

Abstract

Purpose

The increased complexity of global supply chains and its inherent risk requires the re-evaluation of the SCRM discipline as a source of value creation for shareholders. This paper aims to unveil the areas that require more focus considering the point of view of Chinese manufacturers, and following a social constructivist approach oriented to fashion organizations outsourcing to China, unveil the elements driving the point of SCRM strategies.

Design/methodology/approach

The authors studied the existing body of knowledge related to SCRM and developed a model to quantify the influence of macro and micro risk factors to the different operations performance indicators. This model was used in a survey to 61 Chinese manufacturers of fashion products, while at the same time, an interview to 20 members of the SC group of fashion companies around the globe was conducted to understand the qualitative and quantitative elements shaping their SCRM initiatives.

Findings

The study shows that, while supply, manufacturing and demand risk remain as the main factors hindering value creation in the industry, the addition of the manufacturer’s perspective proves that other elements that are less evident to the customer, such as macro-social and micro-infrastructure (transportation, financial and information), require more attention. Additionally, it was noted that the influence of the different risk factors is different for the different performance indicators of quality, speed, cost, dependability and flexibility. Finally, it shows that current SCRM programs tend to be simplified methods of trial and error, fed with incomplete KPIs, shaped by the experience and priorities of dominant stakeholders and prompt to potential agency costs and focused on the short term.

Research limitations/implications

The focus on the fashion industry led to relatively small sample sizes for surveys and interviews. Although some patterns are identified, studies with larger sample sizes could facilitate the statistical analysis of unique characteristics in the different sub-groups. Additionally, the use of cross-sectional research designs that include survey techniques has the limitation of not explaining processes over time. Future reference to this work can be complemented with a new study to unveil the latest priorities.

Practical implications

This study shows that, to create value, fashion organizations first need to determine the operational elements that create value for them and then focus their limited resources on the risk elements that have proved more influence. The authors offer a systematic framework to measure the risk associated with global outsourcing; it can be used by organizations outsourcing globally to make strategic decisions, including potential outsourcing locations, to allocate resources across categories and to evaluate changes over time. Finally, the interview with SC practitioners shows that, to advance toward its objective of value creation, the SCRM discipline requires cross-collaboration and a holistic approach supported by more systematic processes that can reduce bias and potential agency costs.

Originality/value

This study offers insights about contemporary factors affecting the value creation function for fashion organizations outsourcing production to China and a more holistic approach vs other studies by including: a wider and more relevant categorization of risk factors, the perspective of Chinese manufacturers and the view of SC practitioners around the world. This study also develops a model to explain the cycle of SCRM in fashion organizations and the most common traps hindering its execution.

Article
Publication date: 12 April 2011

Sadi Assaf, Mohammad A. Hassanain, Abdul‐Mohsen Al‐Hammad and Ahmed Al‐Nehmi

The objectives of this paper are to identify the critical factors that influence the decision to outsource maintenance services in public Saudi Arabian universities, and to…

4364

Abstract

Purpose

The objectives of this paper are to identify the critical factors that influence the decision to outsource maintenance services in public Saudi Arabian universities, and to investigate the relative importance of each of the identified factors based on the expressed opinions of the in‐house maintenance managers in the concerned maintenance departments in these universities.

Design/methodology/approach

The authors conducted a comprehensive review of the literature in the fields of maintenance management and outsourcing practices to achieve a thorough understanding of the issues involved, and identifying the crucial factors affecting the outsourcing decision of maintenance services. A questionnaire survey was developed to assess each factor influencing the decision to outsource maintenance services in the public Saudi Arabian universities. The survey included 38 factors grouped in six major groups. The respondents who have opted to outsource several of their maintenance services to specialty contractors were asked to indicate their perceived level of importance for each of the identified factors. The level of importance of the factors and the groups were measured. The factor groups were ranked according to the obtained mean rating values.

Findings

The findings show that Saudi universities generally value the importance of the quality, management and strategic factors when making outsourcing decisions. The most important three factors influencing the decision to outsource maintenance services in the public Saudi Arabia universities were identified as “increase the speed of implementation”, “improve quality requirements” and “risk sharing with contractors”.

Practical implications

The findings of the study provide practical value for facilities maintenance managers in institutions of higher education confronted with the decision of whether to outsource maintenance services in their campuses.

Originality/value

The paper is original in the sense that it identifies how in‐house maintenance managers rate the importance of the factors influencing outsourcing decisions.

Details

Property Management, vol. 29 no. 2
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…

88455

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

Keywords

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 all the…

3106

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

Article
Publication date: 6 March 2017

Paul L. Hartman, Jeffrey A. Ogden and Benjamin T. Hazen

Discussion regarding the implications of and antecedents to the decision to outsource manufacturing functions has dominated both the academic literature and popular press for over…

4097

Abstract

Purpose

Discussion regarding the implications of and antecedents to the decision to outsource manufacturing functions has dominated both the academic literature and popular press for over 30 years. However, economic and competitive landscapes across the globe have changed such that the tenability of outsourcing is being re-evaluated by many organizations. Using the rich body of literature regarding the decision to outsource as a starting point, the purpose of this paper is to investigate the reasons why firms insource and the associated implications thereof.

Design/methodology/approach

This case study research captures data from 12 firms in the manufacturing industry that have insourced a previously outsourced function. Data were collected via interviews with executives, researcher observations, and archival records over a nine-month period.

Findings

The findings suggest that the primary drivers for insourcing were predominantly the same as those cited for outsourcing. However, insourcing decisions are often made in response to a specific, external trigger event and not necessarily in concert with long-term, strategic goals. This is in contrast to firms’ desires to make more strategic location decisions. The findings also show that insourcing/outsourcing location decisions require continuous evaluation in order to optimize competitiveness and align with long-term firm goals.

Research limitations/implications

This research contributes by not only assimilating and gaining an understanding of key factors affecting insourcing decisions, but also by establishing a baseline for future investigation into this burgeoning area via the presentation of testable propositions.

Practical implications

This paper provides insights for supply chain, logistics, and operations management professionals who seek to better understand the critical factors that should be considered when deciding whether or not to insource.

Originality/value

The benefits of insourcing are being considered to a greater extent across industry, yet there is a dearth of academic or practitioner literature that business leaders and academicians can use as the basis for examining this decision. This research provides both the basis and motivation for developing knowledge in this area of increasing importance.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 2/3
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 23 August 2019

Qingyao Wan, Yang Yuan and Fujun Lai

The purpose of this paper is to explore how external pressures, internal capability and transaction attributes of logistics outsourcing synergically influence the extent of…

Abstract

Purpose

The purpose of this paper is to explore how external pressures, internal capability and transaction attributes of logistics outsourcing synergically influence the extent of asset-based and non-asset-based logistics outsourcing.

Design/methodology/approach

Based on the data surveyed from 250 manufacturing companies in China, this study employed fuzzy-set qualitative comparative analysis (fsQCA) to deduce multiple configurations for logistics outsourcing decisions.

Findings

The results suggest that asset-based logistics outsourcing is primarily driven by external imitation pressures or internal demands for logistics technologies, while non-asset-based logistics outsourcing is mainly driven by the demands for external management-based logistics services. Asset specificity plays a positive role in promoting both asset-based and non-asset-based logistics outsourcing. The requirement for third-party logistics (3PL) management capability depends on the outsourcing types and outsourcing causes.

Practical implications

This study provides guidance to practitioners for them to make outsourcing decisions. It suggests that asset-based logistics outsourcing is more appropriate when there are high external imitation pressures or more internal logistics demands, while non-asset-based logistics outsourcing should be used only when a firm needs management-based logistics services. Besides, 3PL users are suggested to outsource their logistics when their 3PL providers are required to make specific investments. In addition, managers should carefully evaluate firms’ capabilities in managing outsourcing relationships.

Originality/value

Previous studies largely ignored the interaction effects of a set of factors on logistics outsourcing decisions, and to date, little research empirically examined how outsourcing is driven in terms of different types of outsourcing. Drawing on the institutional theory, dynamic capability view, and transaction cost theory and overarching under the complexity theory, this study examines how institutional, organizational and transactional factors interplay with each other to influence different types of logistics outsourcing (i.e. asset based and non-asset based). Methodologically, the configural analysis (i.e. fsQCA) is applied to explore complex causal configurations that drive logistics outsourcing.

Details

Journal of Enterprise Information Management, vol. 32 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

1 – 10 of over 8000