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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

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Book part
Publication date: 10 August 2016

Ulf Andersson, Suma Athreye and Georgios Batsakis

We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external

Abstract

We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external knowledge network of the home country, (ii) external knowledge network of the host country, and (iii) internal (MNE) knowledge network. Drawing on the relative costs and benefits associated with the process of synergistic knowledge, this study examines whether a substitutive or a complementary relationship exists when two of the aforementioned networks collaborate in order to generate new knowledge at the subsidiary level. Our study’s sample is based on a survey questionnaire addressed to foreign-based R&D subsidiaries of Fortune 500 companies. We assess the existence of complementarity/substitutability using the “production function approach.” Our results indicate that a complementary relationship exists between external knowledge network of the host and the home country, as well as between external knowledge network of the host country and internal knowledge network. On the other hand, external knowledge network of the home country and internal knowledge network form a substitutive relationship. Our study offers a more comprehensive view of the diverse sources/knowledge networks that R&D subsidiaries are sourcing knowledge from when compared to existing research. We also specify and account for the costs/benefits involved in knowledge sourcing and thereby detect possible substitution/complementarity between different sources of knowledge. So far, there has been limited to nonexistent research into the diversity of knowledge networks of R&D subsidiaries and the examination of potential substitutabilities and complementarities. Hence our empirical study contributes to the development of this particular research stream.

Details

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

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Article
Publication date: 29 July 2019

Rony Cabrera and Domingo González

As part of a new focus on a better balance of investment in innovation activities in developing countries, this study aims to understand the effects of technological…

Abstract

Purpose

As part of a new focus on a better balance of investment in innovation activities in developing countries, this study aims to understand the effects of technological attributes (technological complexity and type of technology) on manufacturing technology sourcing (whether firms choose either internal development or external sources).

Design/methodology/approach

Multiple-case studies were conducted in the Peruvian manufacturing sector.

Findings

The authors found that, across Peruvian manufacturing firms, they develop a certain manufacturing technology related to their capabilities. However, when the total cost of acquisition is lower than internal costs of developing technologies, they will choose external sources, regardless of their capabilities and complexity of the technology. In addition, analysis of the type of technology indicated that the pursuit of simultaneous exploration and exploitation occurs when firms use external sources rather than internal.

Research limitations/implications

This study has the limitation that data have been collected years after the decision-making process; the results are based solely on the authors’ analysis using the case of Peruvian industry, and they do not track the impact on the performance of manufacturing technology decisions.

Practical implications

The findings have important implications for technology managers of South American manufacturing firms that are decision makers in the sourcing of new manufacturing technologies.

Originality/value

The results of this study provide literature with insights into technology sourcing strategy in developing countries and the importance of progress in transitioning to technological innovation and catchup.

Objetivo

Como parte de um novo foco em um melhor equilíbrio do investimento em atividades de inovação nos países em desenvolvimento, este estudo compreende os efeitos dos atributos tecnológicos (complexidade tecnológica e tipo de tecnologia) no suprimento de tecnologia de fabricação (se as empresas escolhem desenvolvimento interno ou fontes externas).

Design/metodologia/abordagem

Estudos de casos múltiplos foram conduzidos no setor manufatureiro peruano.

Resultados

Descobrimos que, em todas as empresas de fabricação peruanas, elas desenvolvem uma certa tecnologia de fabricação relacionada às suas capacidades. No entanto, quando o custo total de aquisição é menor do que os custos internos de desenvolvimento de tecnologias, eles escolhem fontes externas, independentemente de suas capacidades e complexidade da tecnologia. Além disso, a análise do tipo de tecnologia indicou que a busca da exploração e exploração simultâneas ocorre quando as empresas usam fontes externas em vez de internas.

Limitações/implicações da pesquisa

Este estudo tem a limitação de que os dados foram coletados anos após o processo de tomada de decisão, os resultados são baseados exclusivamente em nossa análise usando o caso da indústria peruana e não acompanhamos o impacto sobre o desempenho das decisões de tecnologia de fabricação.

Originalidade/valor

Os resultados deste estudo fornecem à literatura insights sobre a estratégia de fornecimento de tecnologia nos países em desenvolvimento e a importância do progresso na transição para a inovação tecnológica e o catch-up.

Palavras-chave

Sourcing de tecnologia, Tecnologia de fabricação, Peru

Objetivo

Como parte de un nuevo enfoque en un mejor equilibrio de la inversión en actividades de innovación en los países en desarrollo, este estudio comprende los efectos de los atributos tecnológicos (complejidad tecnológica y tipo de tecnología) en la fuente de tecnología de manufactura (ya sea que las empresas elijan desarrollo interno o fuentes externas).

Diseño/metodología/aproximación

Se realizaron estudios de casos múltiples en el sector manufacturero peruano.

Resultados

Los resultados muestran que, en todas las empresas manufactureras peruanas, desarrollan una cierta tecnología de manufactura relacionada con sus capacidades. Sin embargo, cuando el costo total de adquisición es menor que el costo interno de desarrollar tecnologías, elegirán fuentes externas, independientemente de sus capacidades y la complejidad de la tecnología. Además, el análisis del tipo de tecnología indicó que la búsqueda simultánea de exploración y explotación ocurre cuando las empresas utilizan fuentes externas en lugar de internas.

Limitaciones

Este estudio tiene la limitante de que los datos fueron recopilados luego del proceso de toma de decisiones, los resultados se basan únicamente en la industria peruana y no analizamos el impacto que tuvieron las decisiones recolectadas.

Originalidad/valor

Los resultados de este estudio proporcionan información sobre la estrategia de abastecimiento de tecnología en los países en desarrollo y la importancia del progreso en la transición a la innovación tecnológica y la puesta al día.

Palabras clave

Fuente de tecnología, Tecnología de fabricación, Perú

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 17 no. 4
Type: Research Article
ISSN: 1536-5433

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Article
Publication date: 19 June 2017

Per Anker Jensen

The purpose of this paper is to provide insights into strategic sourcing concerning facilities management (FM) and how it can contribute to a sourcing decision that…

Abstract

Purpose

The purpose of this paper is to provide insights into strategic sourcing concerning facilities management (FM) and how it can contribute to a sourcing decision that combines the benefits of internal and external provision with consideration of business risk and cost.

Design/methodology/approach

The paper investigates a strategic sourcing and procurement process in a large public organisation in Denmark based on participating in internal meetings, a workshop, document studies and interviews. The process is compared to a new ISO standard with guidance on strategic sourcing and development of FM agreements.

Findings

A problem in the new ISO standard is that it is based on sequential model starting with detailing the demand and needs before investigating sourcing option. The case shows that the way needs are specified are depending on the chosen sourcing models. Based on a thorough analysis, the organisation decided to change the sourcing strategy with insourcing the most critical building-related activities and changing the procurement strategy from one integrated FM contract to three bundled and seven single-service contracts. The concept of right-sourcing is discussed.

Research limitations/implications

The research is based on a study of one public organisation, which limits the possibility to generalise the results. However, it provides detailed insights into the strategic sourcing process in FM, which can give inspiration for practitioners and further research.

Originality/value

The paper throws light on a strategic sourcing process which is rarely available in public because of confidentiality considerations, and it provides the first evaluation of the new ISO standard from 2016.

Details

Journal of Global Operations and Strategic Sourcing, vol. 10 no. 2
Type: Research Article
ISSN: 2398-5364

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Article
Publication date: 31 January 2020

Chunhsien Wang, Tachia Chin and Jie-Heng Lin

Openness to external knowledge has recently gained popularity as a means for firms to complement and leverage internal knowledge in the pursuit of innovation outcomes…

Abstract

Purpose

Openness to external knowledge has recently gained popularity as a means for firms to complement and leverage internal knowledge in the pursuit of innovation outcomes. However, conflicting evidence exists regarding the role of openness in external knowledge acquisition. This paper aims to propose that openness to external knowledge has a nonlinear effect on innovation performance and that this nonlinear relationship is contingent on an ambidextrous knowledge search strategy.

Design/methodology/approach

Based on original large-scale survey of 246 interfirm collaborations in the high-technology industry, it is found that the impact of openness to external knowledge on innovation performance exhibits an inverted-U shape and that this relationship is affected by an ambidextrous knowledge search strategy.

Findings

The results indicate that an ambidextrous knowledge strategy that addresses the depth and breadth of external knowledge significantly influences a firm’s ability to derive benefits from increased openness to external knowledge. Empirically, the authors provide an original contribution to high-technology firms by exploring how and why an ambidextrous knowledge strategy can be a critical catalyst spurring innovation performance.

Research limitations/implications

The research scope is limited to a single industry. Further research could extend the theoretical framework to multiple industries, which may increase the likelihood of innovation theory development.

Practical implications

The results suggest that firms opening up the boundaries of their innovation activity to engage in external knowledge are able to leverage their in-house innovation to enhance their innovation performance. The authors advocate that in innovation management domains, greater emphasis is needed on how openness to external knowledge has more positive impacts not only on innovation performance but also on innovation implemented management.

Originality/value

This study is among the first to investigate the ambidextrous knowledge search effect on the external knowledge of high-technology firms. This paper contributes to the theoretical and practical literature concerning openness innovation and knowledge management by reflecting on the ambidextrous knowledge search strategy.

Details

Journal of Knowledge Management, vol. 24 no. 2
Type: Research Article
ISSN: 1367-3270

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Article
Publication date: 1 December 1999

Martin Fraering and Sameer Prasad

Billions of dollars are being poured into developing nations by multinationals as part of their diversification, divestiture, facility location, and supplier selection…

Abstract

Billions of dollars are being poured into developing nations by multinationals as part of their diversification, divestiture, facility location, and supplier selection strategies. By integrating the literature in international business, marketing, purchasing, and operations management, a contingency model is developed to minimize the overall costs of such decisions. This model provides linkages between the type of product, organizational and country characteristics, and the logistics and sourcing strategies. In addition, it provides specific recommendations to government officials in helping their countries become global platforms for manufacturing and attracting foreign investment.

Details

Logistics Information Management, vol. 12 no. 6
Type: Research Article
ISSN: 0957-6053

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Article
Publication date: 16 October 2020

Deemah Alassaf, Marina Dabić, Dara Shifrer and Tugrul Daim

The purpose of this paper is to fill a significant research gap in academic literature pertaining to open innovation (OI). To do so, this paper empirically tests the…

Abstract

Purpose

The purpose of this paper is to fill a significant research gap in academic literature pertaining to open innovation (OI). To do so, this paper empirically tests the impact of organizational culture, employees’ knowledge, attitudes and rewards as antecedents and mediators of OI adoption in organizations, facilitating a more thorough understanding by using an empirical multi-level approach.

Design/methodology/approach

This paper analyzes the results of the “Identification of Industrial Needs for Open Innovation Education in Europe” survey through a quantitative analysis using logistic regression models. This survey includes 528 employees working in 28 different industrial sectors in 37 countries, most of which are in Europe.

Findings

The results suggest a positive impact of organizational characteristics on the adoption of OI (i.e. including the adoption of outside-in and inside-out OI activities in participating organizations), showing that the openness of an organization’s culture increases its likelihood of adopting an OI paradigm. More importantly, the results highlight the positive mediating effect of employees’ knowledge and rewards on this relationship.

Research limitations/implications

The data set that was the basis of this paper was generated in European countries, the results of the analysis are limited and appropriate for this region and may vary when applied to other regions of the world.

Practical implications

The proposed multi-level approach offers new insight into organizational knowledge. It enables the improvement of OI and knowledge management practices in organizations by assisting practitioners and academics in recognizing the relationship between organizational culture; employees’ knowledge, attitudes and rewards; and the adoption of the OI paradigm.

Social implications

This paper offers a possible explanation on why open-border cultures are more likely to have a successful OI adoption, by relating it to factors that advance in the presence of an open-border culture, such as active participation of OI relative departments in knowledge sourcing and knowledge exchange, and rewarding employees for OI activities.

Originality/value

This paper presents a new framework which links organizational culture to OI, moving on from merely examining culture in terms of its positive or negative impact on OI adoption. It contributes to research on the OI paradigm and knowledge management by highlighting the significance of antecedents and mediators from a multi-level perspective using multiple units of analysis. Most previous studies focus on a single unit of analysis.

Details

Journal of Knowledge Management, vol. 24 no. 9
Type: Research Article
ISSN: 1367-3270

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Article
Publication date: 16 October 2007

Johan Åkesson, Patrik Jonsson and Robert Edanius‐Hällås

The purpose of this paper is to empirically identify different types of sourcing strategies applied in the apparel industry, and to explain how various sourcing strategies…

Abstract

Purpose

The purpose of this paper is to empirically identify different types of sourcing strategies applied in the apparel industry, and to explain how various sourcing strategies are related to the apparel firm's characteristics, prerequisites and supplier performance.

Design/methodology/approach

This paper is based on a survey that was sent out to Swedish apparel firms. Commonly applied sourcing strategies, in terms of supply markets and supply channels, are first derived using cluster analysis. These strategies are then linked to relevant firm characteristics, prerequisites and supplier performance measures, where significant differences between groups of firms applying various sourcing strategies are targeted.

Findings

Five commonly applied sourcing strategies are identified. Further, several significant differences – with respect to product issues, organizational issues and supplier performance – are found between the firm groups.

Research limitations/implications

Several future research areas in conjunction with this study can be derived by widening or changing the scope. For instance, other industries as well as apparel industries in other countries can be targeted and thus provide valuable comparisons.

Practical implications

Assessing the contextual appropriateness of sourcing strategies provides a strategic sourcing benchmark for firms across industries. Notably, apparel firms' experience in exploiting low‐cost supply markets may provide valuable insights for firms that just recently have recognized the potential of these markets.

Originality/value

This paper provides a contextual understanding of how various sourcing strategies are utilized in the Swedish apparel industry, and thereby contributes to the general conception of sourcing strategies.

Details

International Journal of Physical Distribution & Logistics Management, vol. 37 no. 9
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 7 September 2018

Tong Che, Zijing Wu, Yaoyu Wang and Rui Yang

Innovation is the combination of idea generation and idea implementation. Sourcing relevant and credible external knowledge is critical for individuals to generate new…

Abstract

Purpose

Innovation is the combination of idea generation and idea implementation. Sourcing relevant and credible external knowledge is critical for individuals to generate new feasible ideas and reduce the uncertainty of implementation. The purpose of this study is to investigate the effects of knowledge sourcing on employee’s innovations behavior.

Design/methodology/approach

The data were collected by paper-based survey in four Chinese companies’ R&D departments and consisted of 569 valid responses. Structure equitation modeling method was used to test the hypotheses.

Findings

The results indicate that knowledge sourcing, which is formatively conceptualized by tacit knowledge sourcing and explicit knowledge sourcing, significantly influences employee’s innovation behavior. In particular, the direct effect of knowledge sourcing is fully mediated by task-efficacy. Furthermore, the effects of knowledge sourcing are contingent upon information transparency.

Originality/value

This study not only contributes to knowledge sourcing literature by investigating knowledge sourcing from idea generation and idea implementation perspectives, but also is of importance to knowledge management research by demonstrating the moderating effects of information transparency.

Details

Journal of Knowledge Management, vol. 23 no. 2
Type: Research Article
ISSN: 1367-3270

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Article
Publication date: 20 April 2020

Manzoor Ul Akram, Koustab Ghosh and Rojers P. Joseph

This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in…

Abstract

Purpose

This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in Indian context. The authors theorize the mediating role of absorptive capacity (potential and realized absorptive capacity) between knowledge sourcing from external sources and product innovation. Further, the authors examine the moderating role of crucial internal social capital of the family firm in enhancing the use of external knowledge for firm innovation activities.

Design/methodology/approach

The study uses a quantitative research design taking single informant for collection of data from 151 family small and medium enterprises in automotive sector in India. The authors use structural equation modeling to test hypothesized relationships.

Findings

The findings indicate that both search breadth and search depth of family firms are positively associated with product innovation in family firms. The authors also find evidence for partial mediating role of potential and realized absorptive capacity in the relationship between search breadth and innovation and search depth and innovation. The results show how family firms learning taking place while scanning external knowledge sources in terms of external absorptive capacity routines. Finally, the authors find that family firm internal social capital positively moderate the relationship between search breadth and depth, and product innovation.

Practical implications

Family firms need to innovate to remain relevant in the long-run and as such development of superior capabilities is of great significance to them. Family firm managers must be open to external knowledge as such knowledge help them improve the firm level of innovation through absorptive capacity. Further, family firms must realize and act upon the importance of their social capital for the integration and utilization of acquired knowledge.

Originality/value

This paper is amongst a few papers that take dynamic capability views of innovation in family firms wherein the authors theorize how external search breadth and depth lead to the development of potential and realized absorptive capacity in family firms. The importance of family firm internal social capital as a strong integrating and knowledge sharing mechanism that helps family firms transform external knowledge into innovation is also highlighted.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 51 no. 3
Type: Research Article
ISSN: 2059-5891

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