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Article
Publication date: 20 February 2009

Ali Yakhlef

The purpose of this paper is to explore the extent to which outsourcing can be regarded as a mode of increasing organization learning through the internalization of new routines.

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Abstract

Purpose

The purpose of this paper is to explore the extent to which outsourcing can be regarded as a mode of increasing organization learning through the internalization of new routines.

Design/methodology/approach

The paper features six case studies of firms that have outsourced parts, or all of their information technology (IT) activities.

Findings

When a firm outsources an IT activity (that has been performed in‐house), it needs to develop an ability to specify to its supplier(s), and articulate its IT requirements in explicit terms. Firm's effort to externalize knowledge that was internal to an external supplier implies that a great deal of relatively tacit knowledge has to be converted into explicit knowledge, so that suppliers are able to understand the firm's business specificity. In this very process of externalizing knowledge and interacting with suppliers and other market players, the firm develops new rules, routines and procedures relating to how to manage the outsourced IT activity, which over time will be internalized.

Originality/value

The paper is of value in linking outsourcing and organizational learning.

Details

Strategic Outsourcing: An International Journal, vol. 2 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 4 June 2020

Peeyush Pandey

The construct of Organizational Learning has been studied through various perspectives but still there is a dearth of literature on how the organization’s outsourcing activities…

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Abstract

Purpose

The construct of Organizational Learning has been studied through various perspectives but still there is a dearth of literature on how the organization’s outsourcing activities impact the learning process, specifically human resource outsourcing. This paper intends to link these two concepts.

Design/methodology/approach

Several research articles related to Organizational learning and outsourcing have been read and reviewed. Based on the understanding from the literature the insights are summarised and discussed.

Findings

This paper demonstrates linkage between organizational learning and human resource outsourcing by putting forth the impact human resource outsourcing can have on organizational learning from both positive and negative lenses.

Originality/value

Not many studies have established the linkage between two important constructs- Organizational Learning and Human Resource Outsourcing. This paper intends to bridge this gap in the literature by highlighting both positive and negative aspects of HR Outsourcing on the learning capabilities of the organizations.

Details

Development and Learning in Organizations: An International Journal, vol. 35 no. 3
Type: Research Article
ISSN: 1477-7282

Keywords

Article
Publication date: 30 December 2020

Pooja Thakur-Wernz and Christian Wernz

While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who…

Abstract

Purpose

While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who are often from an advanced country. By examining vendor firms, in this paper the authors shift the focus to the second party in the dyadic relationship of R&D offshore outsourcing. Specifically, the authors compare vendor firms with nonvendor firms from the same emerging economy and industry to look at whether vendor firms from emerging economies can improve their innovation performance by learning from their clients. The authors also look at the role of depth and breadth of existing technological capabilities of the vendor firm in its ability to improve its innovation performance.

Design/methodology/approach

This study is based on firm-level data from the Indian biopharmaceutical industry between 2005 and 2016. The authors use the Heckman two-stage model to control for self-selection by firms. The authors compare the innovation performance of vendor firms with nonvendor biopharmaceutical firms (group vs nongroup analysis) as well as innovation performance across vendor firms (within group comparison).

Findings

The authors find that, compared to nonvendor firms, R&D offshore outsourcing vendor firms from emerging economies have higher innovation performance. The authors argue that this higher innovation performance among vendor firms is due to learning from their clients. Among vendor firms, the authors find that the innovation gains are contingent upon the two factors of depth and breadth of the vendor firms' technological capabilities.

Research limitations/implications

This paper makes three contributions: First, the authors augment the nascent stream of research on innovation from emerging economy firms. The authors introduce a new mechanism for emerging economy firms to learn and upgrade their capabilities. Second, the authors contribute to the literature on global value chains, by showing that vendor firms are able to learn from their clients and upgrade their capabilities. Third, by examining the innovation by vendor firms, the authors contribute to the R&D offshore outsourcing, which has largely focused on the client.

Practical implications

The study findings have important implications for both clients and vendors. For client firms, the authors provide evidence that knowledge spillovers do happen, and R&D offshore outsourcing can turn vendors into potential competitors. This research helps firms from emerging economies by showing that becoming vendors for R&D offshore outsourcing is a viable option to learn from foreign firms and improve innovation performance. Going outside geographic boundaries may be a large hurdle for these resource-strapped, emerging economy firms. Providing offshore outsourcing services for narrow slices of R&D activities may be a starting point for these firms to upgrade their capabilities.

Originality/value

This paper is among the first to quantitatively study the innovation performance of vendor firms from emerging economies. The authors also contribute to the nascent literature on innovation in emerging economy firms by showing that providing R&D offshore outsourcing services to client firms from advanced countries can improve firms' innovation performance.

Abstract

Details

Societal Entrepreneurship and Competitiveness
Type: Book
ISBN: 978-1-83867-471-7

Article
Publication date: 5 October 2022

Amoin Bernadine N’Dri and Zhan Su

This paper aims to contribute to international business research by providing an integrative framework of the factors determining the learning process of outsourcing companies in…

Abstract

Purpose

This paper aims to contribute to international business research by providing an integrative framework of the factors determining the learning process of outsourcing companies in developing countries.

Design/methodology/approach

A systematic review of the literature was performed with an analysis of 84 articles published in peer-reviewed academic journals, published between 2000 and 2020.

Findings

The results show that the different factors should be seen as complementary and not mutually exclusive. It is the interaction between macro and micro factors that jointly shape the learning of developing country subcontractors. Moreover, the results of the analysis show that many existing studies have not been based on specific theoretical frameworks.

Research limitations/implications

This study develops a roadmap of the current state of research on the determinants of learning among developing country subcontractors and offers suggestions to guide future research. The authors conclude with a call for methodological advancement and theory development on the topic.

Originality/value

To the best of the authors’ knowledge, this study proposes the first comprehensive review of the literature on the factors determining the learning of subcontractors in developing countries. The authors have tried to provide an integrative analytical framework to discuss what has been known and what needs to be known in this regard.

Details

Critical Perspectives on International Business, vol. 19 no. 3
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 26 August 2014

Maike Scherrer-Rathje, Patricia Deflorin and Gopesh Anand

The purpose of this paper is to examine the influence of organizational context on the relationships between outsourcing and manufacturing flexibility. In doing so, the authors…

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Abstract

Purpose

The purpose of this paper is to examine the influence of organizational context on the relationships between outsourcing and manufacturing flexibility. In doing so, the authors study four types of manufacturing flexibility: product, mix, volume, and labor competence flexibility.

Design/methodology/approach

Based on transaction cost economics theory and resource-based view of competitive advantage, the authors focus on economies of scale and scope, asset specificity, organizational learning, and dynamic capabilities as contingencies affecting outsourcing-flexibility relationships. Combining theoretically developed propositions with insights from case studies of 11 manufacturing companies that outsourced some portion of their manufacturing, the authors derive grounded hypotheses.

Findings

Empirical results show that in some cases the effects of outsourcing on different types of manufacturing flexibility vary based upon some contingency factors.

Research limitations/implications

Due to the qualitative nature and the geographical focus of the empirical examination, applicability of the findings to other contexts may be limited.

Practical implications

The authors point out specific contingencies that managers should consider when targeting manufacturing flexibility through outsourcing.

Originality/value

This paper presents the interrelationships among outsourcing of manufacturing activities, four types of manufacturing flexibilities, and theoretically derived contingencies. Based on evidence from the analyzed cases, the authors find indications that some contingencies moderate outsourcing-flexibility relationships. In addition, this paper introduces a new type of manufacturing flexibility: labor competence flexibility, which is defined as the ability of a company's workforce to deal with technology driven additions to and subtractions from products over time.

Details

International Journal of Operations & Production Management, vol. 34 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 22 February 2011

Leslie Willcocks

The purpose of this paper is to describe and assess the evolution of client and supplier approaches and capabilities from 1989 to 2010 in relation to outsourcing and delineate…

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Abstract

Purpose

The purpose of this paper is to describe and assess the evolution of client and supplier approaches and capabilities from 1989 to 2010 in relation to outsourcing and delineate four phases which client learning can be observed to pass through over time. It assesses the lessons that outsourcing stakeholders can absorb from this short but rich history.

Design/methodology/approach

The paper is based on a detailed review of 20 years of research into 1,600+outsourcing arrangements studied overtime, and carried out by the author with a range of colleagues, covering IT and business process outsourcing and offshoring practices.

Findings

The paper finds that learning has been slow and not passed well within organizations or across from the fields of ITO to BPO and offshore outsourcing. Retained capabilities emerge as a key lifebelt for survival. However, the more recent history has seen more moves towards greater collaboration, which make more objectives and innovation possible.

Research limitations/implications

The paper provides a review of extant research, rather than providing new research.

Practical implications

The outsourcing growth in prospect over the next few years depends for its management success on a shift from a power‐based orientation to governance structures and trust building and collaboration, given the otherwise high costs involved in monitoring and imposing sanctions, the negative orientations and behaviours adopted, and the limited goals that can be pursued by the parties.

Originality/value

The paper takes a historical perspective to outsourcing, and looks at evolution of the whole global market over 20 years.

Details

Strategic Outsourcing: An International Journal, vol. 4 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 5 January 2010

The purpose of this paper is to review the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

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Abstract

Purpose

The purpose of this paper is to review the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

The notion of a firm as a coherently‐bounded entity has conventionally meant that a firm is the source of learning and of new knowledge. However, a new perception is taking shape: new knowledge can be generated from both internal and external sources.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Details

Development and Learning in Organizations: An International Journal, vol. 24 no. 1
Type: Research Article
ISSN: 1477-7282

Keywords

Article
Publication date: 4 January 2011

Jakki J. Mohr, Sanjit Sengupta and Stanley F. Slater

This article develops a framework that helps clients and service providers make better decisions about whether and when to outsource, and on the appropriate type of outsourcing

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Abstract

Purpose

This article develops a framework that helps clients and service providers make better decisions about whether and when to outsource, and on the appropriate type of outsourcing arrangement.

Design/methodology/approach

The paper is conceptual in nature.

Findings

Companies must align the governance of business functions to the underlying needs, resources, and desired outcomes. Simple procurement may suffice for acquiring standard business services such as cafeteria catering. When economies of scale exist and when transfer of explicit, codified knowledge is involved, straight‐forward transactional “lift and shift” IT and BP outsourcing arrangements will yield cost savings and efficiency. When transfer of know‐how is more tacit, and the goal is to add value to the client's customers beyond cost efficiency, longer‐term strategic outsourcing is appropriate. Finally, when there are risks to expropriation of proprietary knowledge and capital invested, transformational outsourcing is best.

Practical implications

The client and service provider need to ensure they do not overcommit resources in the case of transactional outsourcing while being prepared to invest adequately in strategic and transformational outsourcing. The framework helps to answer the question of when transformational outsourcing arrangements are appropriate. It also makes explicit the various risks involved, so that appropriate governance can effectively address the risks.

Orginality/value

Many authors have written about the pitfalls of outsourcing including rushing through the initiative and not having a formal governance program. To address these, our framework advocates a comprehensive review of the entire array of possibilities, from in‐house development to simple procurement of services in the open market, as alternatives to outsourcing.

Details

Journal of Business Strategy, vol. 32 no. 1
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 1 March 2003

Harvey E. Griggs and Paul Hyland

The quality of individual and collective learning has been held to be a key determinant of organisational success. It has been strongly advocated that the “continuously learning

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Abstract

The quality of individual and collective learning has been held to be a key determinant of organisational success. It has been strongly advocated that the “continuously learning organisation” is perhaps the greatest business asset in an organisation. Organisations are becoming more systematic in identifying measures to overcome losses caused by downsizing by proactively developing learning systems to capture, record and manage the knowledge of operational employees and engineering/technical staff. This paper discusses the nature of the planned “brain‐drain” phenomenon, the concept of the learning organisation, and the conceptual relationship between the two, and by analysing an empirical case study demonstrating that restructuring and organisational learning are not necessarily mutually exclusive concepts.

Details

Journal of European Industrial Training, vol. 27 no. 2/3/4
Type: Research Article
ISSN: 0309-0590

Keywords

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