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1 – 10 of 874
Open Access
Article
Publication date: 10 October 2023

Pham Thi Bich Ngoc, Pham Thi Hoa Tien, Pham Dinh Long and Huynh Quoc Vu

The paper aims to investigate the difference in total factor productivity (TFP) among those firms with and without outsourcing in a developing country like Vietnam. Also, it…

Abstract

Purpose

The paper aims to investigate the difference in total factor productivity (TFP) among those firms with and without outsourcing in a developing country like Vietnam. Also, it explores the effect of outsourcing activities on total factor productivity with a specified concentration on the Vietnamese small and medium-sized enterprises (SMEs).

Design/methodology/approach

The panel data set of SMEs used in this study was originated from biannual surveys conducted under the collaboration between educational organizations and government agencies: Stockholm School of Economics (SSE), Department of Economics – the University of Copenhagen, the Institution of Labor Studies and Social Affairs (ILSSA) in the Ministry of Labor, Invalids and Social Affairs (MOLISA). In this study, the model is developed based on the production function in accordance with the model of Girma and Görg (2004). The firms’ TFP is the difference between the actual and the predicted output as with the approach by Levinsohn and Petrin (2003).

Findings

This study finds out that firms with outsourcing have higher total factor productivity than those without outsourcing activities. In addition, the more firms spend on outsourcing, the higher total factor productivity they can gain. Outsourcing to SMEs in a developing country can significantly increase its TFP by means of either maintaining core competencies or searching external resources in conducting some internal activities.

Originality/value

Although outsourcing has been widely applied by large firms, the research studying its impact on productivity at firm level is limited. Especially, this study can shed light on the impact for the case of SMEs in a developing economy.

Details

Fulbright Review of Economics and Policy, vol. 3 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 7 September 2015

Robin von Haartman and Lars Bengtsson

The interest in global purchasing has increased significantly in recent years, but the impact on product innovation is not well understood. The purpose of this paper is to…

30152

Abstract

Purpose

The interest in global purchasing has increased significantly in recent years, but the impact on product innovation is not well understood. The purpose of this paper is to empirically analyse the impact of global purchasing on product innovation sourced from suppliers, while taking into account how firms integrate their suppliers.

Design/methodology/approach

The data used in this study are from the International Purchasing Survey, an international online survey on purchasing and supply management conducted in 2009. The data are analysed using factor and regression analyses.

Findings

The paper shows that global purchasing has no direct impact on product innovation performance. However, supplier integration is more strongly associated with product innovation performance for firms purchasing globally compared to firms purchasing regionally.

Practical implications

The implication is that when companies purchase globally, they must have a highly developed purchasing department in order to sustain a high level of innovation. For firms purchasing only regionally, the role of the purchasing department is diminished, at least in terms of contributing to innovation.

Originality/value

This paper contributes to the discussion of potential advantages and disadvantages of global purchasing. First, the paper provides an explanation for the ambiguous results of previous research. Product innovation does not depend on whether firms are purchasing globally or not, it depends on how they purchase. This paper has showed that when purchasing globally, the role of the purchasing department becomes crucial for product innovation. The proficiency and activities of the purchasing department largely determine the success, in terms of supplier product innovation, of global purchasing.

Details

International Journal of Operations & Production Management, vol. 35 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 31 August 2017

Apithamsoonthorn Sompong and Suthiwartnarueput Kamonchanok

Outsourcing is recognized as one of the critical factors for efficient execution of pharmaceutical supply chain management (PSCM), and many pharmaceutical companies engage in…

Abstract

Outsourcing is recognized as one of the critical factors for efficient execution of pharmaceutical supply chain management (PSCM), and many pharmaceutical companies engage in international outsourcing of services (IOS) to survive in global highly competitive business. Since the key success factors for both domestic & international alliances are partnership characteristics and strategic fit management, but there is no empirical research on this issue in Thai pharmaceutical partnership offshore outsourcing. Therefore, this survey of Thai and foreign companies, both contract providers (CPs) and contract manufacturers (CMs), seeks to indicate significant relationships among both outsourcing strategic fit and partnership types, including outsourcing performance outcome. This research is two-fold. First, the partnership types (Type I, II, & III), the strategic fit types (low fit, moderate fit, and good fit), and their correlations are analyzed. And second, their outsourcing performance (company revenues and growth rates) are presented. The results showed that the most of the Thai pharmaceutical outsourcing manufacturing are classified as the partnership Type II, as well as the moderate strategic fit, and strongly support the relationship between the two models. Both of the companies’ revenue and growth rate could predict the companies’ performances outcome for each of partnership and strategic fit types. However, it is not necessary that the most integrative type of partnership, Type III, will be always the best, because it depends also on the strategic fit between each pair of partners as well.

Details

Journal of International Logistics and Trade, vol. 15 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 8 April 2019

Ioanna Falagara Sigala and Tina Wakolbinger

The purpose of this paper is to empirically explore the potential of outsourcing of humanitarian logistics activities to commercial logistics service providers (LSPs) throughout…

5792

Abstract

Purpose

The purpose of this paper is to empirically explore the potential of outsourcing of humanitarian logistics activities to commercial logistics service providers (LSPs) throughout the different disaster phases. The authors identify incentives for initiating outsourcing of humanitarian logistics activities to commercial logistics providers, humanitarian logistics activities to be outsourced and selection criteria for partners.

Design/methodology/approach

This study is based on empirical data collected by interviewing 12 practitioners from commercial LSPs and 12 practitioners from humanitarian organizations (HOs). A review of related literature guided this research.

Findings

This research shows that incentives for initiating outsourcing engagements, partner selection criteria and activities to be outsourced are changing throughout the different disaster phases. A number of research propositions are presented.

Research limitations/implications

This research constitutes a first step towards the goal of a comprehensive analysis of humanitarian logistics outsourcing throughout the different disaster phases. The authors collected data from practitioners and large organizations based mainly in Europe and the USA. Hence, insights from national and local organizations of other parts of the world are missing.

Practical implications

This research provides a deeper understanding of outsourcing of humanitarian logistics activities. As the main implication for practice, the research suggests a strategic use of outsourcing during the three disaster phases. The authors acknowledge that business objectives, risks, stakeholder agendas and requirements, as well as costs play a vital and changing role for outsourcing decision-making during the three disaster stages. The managerial implications arising from the research can provide support to commercial LSPs and HOs that initiate or develop strategic outsourcing relationships.

Originality/value

This study covers the gap in the humanitarian literature related to context-specific factors of outsourcing in humanitarian logistics by empirically investigating the phenomenon. This is one of the first studies that empirically investigate the potential of outsourcing of humanitarian logistics activities throughout the disaster phases.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 9 no. 1
Type: Research Article
ISSN: 2042-6747

Keywords

Open Access
Article
Publication date: 20 October 2021

Tomi Solakivi, Ain Kiisler and Olli-Pekka Hilmola

This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The…

1492

Abstract

Purpose

This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The purpose of this paper is to examine whether the two markets have become more similar or whether their logistics costs and logistics markets have developed differently over time.

Design/methodology/approach

The development of the logistics market is addressed through two survey-based variables. Logistics costs are used to measure the size of the logistics market, whereas logistics outsourcing is analyzed to measure the development phase as well as the market potential for logistics service provision.

Findings

Estonian logistics outsourcing market was found to be underdeveloped and small compared to the Finnish market. At the same time, the logistics costs of Finnish companies are high and rising, whereas the costs of Estonian firms are declining.

Research limitations/implications

The results imply that the level of outsourcing might explain the visibility of logistics costs, which should be taken into account when making estimates on logistics costs both at the firm as well as on country level.

Social implications

Logistics sector is an important source of national competitiveness and employment. This research identifies subareas for the two countries on how to develop competitiveness through the logistics market.

Originality/value

This research provides a unique method to estimate the size of logistics outsourcing market in these two countries. It also represents as one of the rare works to provide multiyear comparison between countries in logistics costs.

Details

Journal of Global Operations and Strategic Sourcing, vol. 15 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Open Access
Article
Publication date: 29 April 2021

Lorenzo Bruno Prataviera, Elena Tappia, Sara Perotti and Alessandro Perego

Today logistics is an ever-growing multi-billion-dollar business, and logistics operations have been increasingly outsourced to specialised players. The intended aim of this paper…

1987

Abstract

Purpose

Today logistics is an ever-growing multi-billion-dollar business, and logistics operations have been increasingly outsourced to specialised players. The intended aim of this paper is to offer a multi-method approach for estimating the size of the national logistics outsourcing market by building upon financial-reporting data of logistics service providers (LSPs).

Design/methodology/approach

The proposed approach is structured into four steps, clustered around two main stages: framework setting and data collection, and processing. A combination of methods is offered, including a review of academic literature and secondary sources, focus groups, interviews and data extractions from national databases.

Findings

The proposed approach is meant to be replicable in different countries, thus allowing for comparison amongst markets. With reference to a specific country and year, the following outputs are provided: market size in terms of the number of players and generated turnover – total and split by LSPs type – and market concentration measures. A practical application of the proposed approach to a specific context, i.e. Italy is finally offered.

Originality/value

The study focusses on the logistics outsourcing market and considers financial-reporting data from LSPs, avoiding the need for introducing assumptions about the value of logistics operations for shippers. The proposed approach can contribute to strengthening the accuracy of LSPs' market analyses, and supporting the development of national policies by local governments. The adoption of multiple methods brings rigour and reliability to the study. Finally, high flexibility is ensured, as the method may be adaptable over time to cope with future changes in the logistics landscape.

Details

International Journal of Physical Distribution & Logistics Management, vol. 51 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 16 December 2021

Alejandro Godino and Oscar Molina

The paper aims to analyze collective bargaining in the facility management business of these six countries to explore similarities and differences between them. The analysis…

2606

Abstract

Purpose

The paper aims to analyze collective bargaining in the facility management business of these six countries to explore similarities and differences between them. The analysis serves to test the differential impact of the national institutional setting on the protection provided by collective agreements to facility management workers.

Design/methodology/approach

The paper adopts a case study methodology to approach a facility management multinational company providing services in six European countries (France, Italy, The Netherlands, Poland, Spain and the UK) that represent different industrial relations systems with variance in key dimensions of collective bargaining, including its structure, coverage and extension of agreements.

Findings

The extension of the facility management business model has not always adopted a high-road strategy aimed at enhancing the quality and efficiency through the integrated management and delivery of services, which is expected to positively impact employment conditions. Rather, it has, in many cases, been a deliberate, low-road attempt to undercut working standards, taking advantage of the multiple services provided by the company in a context of growing de-centralization in collective bargaining. The results point to an important role of industrial relations institutions in shaping facility management strategies and outcomes.

Originality/value

Similar to other forms of outsourcing, facility management leads to fragmented employment relations. However, the concentration of outsourced workers under the same supplier organization introduces opportunities to ensure the protection of workers, depending on the adoption of a high- or low-road competitive strategy. This paper provides for the first time comparative evidence about industrial relations in facility management businesses, a largely under-researched area.

Details

Employee Relations: The International Journal, vol. 44 no. 7
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 10 June 2020

Suvituulia Taponen and Katri Kauppi

The purpose of this paper is to compare service outsourcing decisions between public and private organizations and against a theoretical decision-making framework to both…

10027

Abstract

Purpose

The purpose of this paper is to compare service outsourcing decisions between public and private organizations and against a theoretical decision-making framework to both understand differences across the sectors and to provide an outsourcing framework more suitable specifically for outsourcing (and for the public sector).

Design/methodology/approach

Multiple case studies, i.e. a study of phenomena (here outsourcing process) at various sites is used as an approach.

Findings

Findings indicate that public sector organizations are trailing behind private sector organizations in how the decision-making process is conducted and resourced. The authors suggest regular evaluation of service functions internally as a starting point for the outsourcing service decision-making process. Additionally, the market analysis should be done prior to cost analysis and benchmarking as the availability of suppliers more qualified than the internal process defines the make or buy decision.

Research limitations/implications

The newly developed framework based on empirical evidence includes the following phases: regular evaluation of service functions, market analysis, cost analysis and benchmarking and evaluating relevant service activities. Applying the framework improves the efficient delivery of outsourced public services and brings public sector outsourcing closer to the professionalism currently present in the private sector.

Originality/value

Choosing between in-house and outsourced service delivery is a fundamental decision in both private and public sector organizations. Previous outsourcing research has mostly focused on the private sector, with limited focus on the public sector’s outsourcing processes, yet understanding of the service outsourcing process is important in ensuring organizational competitiveness and cost efficiency.

Details

Journal of Global Operations and Strategic Sourcing, vol. 13 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Open Access
Article
Publication date: 26 June 2023

Juliano Afonso Tessaro, Rainer Harms and Holger Schiele

This study aims to analyze how startups organize their purchasing activities to improve operative excellence and become attractive customers.

Abstract

Purpose

This study aims to analyze how startups organize their purchasing activities to improve operative excellence and become attractive customers.

Design/methodology/approach

The authors use a two-phase exploratory approach with semistructured interviews and a World Café. In total, 20 startup purchasers and suppliers participated. It is an international study with participants from eight countries (Belgium, Brazil, France, Germany, Hungary, The Netherlands, the UK and the USA).

Findings

The authors find that startups organize the purchasing function in five ways: partial outsourcing, transactional-oriented, strategic only, outsourced purchasing and full department. Each type has advantages and disadvantages regarding operative excellence. The authors identify type-specific antecedents to operative excellence: forecasting, payment habits, ordering process, contact accessibility and quick decision-making.

Research limitations/implications

The value of this paper is that it offers entrepreneurs a framework to organize startup purchasing activities, including outsourcing options. Furthermore, it provides theoretical contributions that expand the topic of purchasing and supply organization and operative excellence to the startup context.

Originality/value

The value of this paper is that, to the best of the authors’ knowledge, it is the first to explore purchasing organization and operative excellence in startups.

Details

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

Keywords

Open Access
Article
Publication date: 26 June 2023

Petter Haglund and Mats Janné

The construction industry shows an increased interest in how to manage logistics within construction projects. Often construction logistics is outsourced to a logistics service…

1139

Abstract

Purpose

The construction industry shows an increased interest in how to manage logistics within construction projects. Often construction logistics is outsourced to a logistics service provider (LSP). However, construction logistics is normally approached either as a strategic decision or as an operational issue and rarely as a tactical concern. The purpose of this study is to explore how to organize the logistics outsourcing decision at strategic, tactical and operational levels.

Design/methodology/approach

This study is performed as a single-case study within a construction corporation, containing (amongst others) a building contractor (BC) and a construction equipment rental company (CERC) offering logistics services.

Findings

The study shows that to procure construction logistics service successfully, BCs need logistics capabilities at strategic and tactical levels to maintain an alignment between the use of logistics services and operational characteristics. Simultaneously, CERC’s need to design their service offerings to correspond to the needs of the BC.

Research limitations/implications

This study builds on a single-case study of a Swedish construction corporation. Further research is needed to better understand current logistics outsourcing and development practices and how these can be improved to foster better logistics management at the project level.

Practical implications

BCs find suggestions of different logistics organization structures and suitable outsourcing arrangements. CERCs and LSPs can use the findings to understand their customers’ needs and adapt service offerings.

Originality/value

To the best of the authors’ knowledge, this study is one of the first studies of how two companies within a corporation can work together to develop construction logistics service offerings.

Details

Construction Innovation , vol. 24 no. 7
Type: Research Article
ISSN: 1471-4175

Keywords

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