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Article
Publication date: 11 March 2024

Hua Ke and Yaqin Zhou

In this paper, the authors study the entry and outsourcing strategies of manufacturer while considering the brand spillover effect resulting from outsourcing. The supply chain…

Abstract

Purpose

In this paper, the authors study the entry and outsourcing strategies of manufacturer while considering the brand spillover effect resulting from outsourcing. The supply chain comprises two manufacturers: one being the entrant with a strong brand, and the other as the incumbent with a weak brand. The entrant decides whether and how to enter the market.

Design/methodology/approach

Stackelberg game is applied to study the optimal strategies for the manufacturers. This paper conducts a comparative analysis on four situations, yielding conclusions and managerial insights.

Findings

The results show that, for the entrant, there is no need to worry about the brand spillover effect in the outsourcing process, which is very interesting and counterintuitive. To get further, the authors find the reason: The spillover effect causes the entrant’s equilibrium retail price to grow faster than the wholesale price. They also prove that a stronger brand effect empowers the entrant to challenge industry barriers, while the impact of the brand spillover effect is the opposite. For the incumbent who acts as the weak party in this issue, it is demonstrated that the optimal choice is to continue selling when facing the encroachment and outsourcing call from the entrant.

Originality/value

Differing from previous studies, the authors notice the brand spillover effect caused by outsourcing when studying company’s entry strategy. They further divide the brand effect into two parts, one of which does not exhibit a spillover.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 1 April 2004

Mark Power, Carlo Bonifazi and Kevin C. Desouza

As businesses struggle to lower cost and grow revenues, outsourcing initiatives are underway in many small, medium, and large global companies. Outsourcing strategies are…

11471

Abstract

As businesses struggle to lower cost and grow revenues, outsourcing initiatives are underway in many small, medium, and large global companies. Outsourcing strategies are considered by many as a “silver bullet” to resolve organizational problems. They have been touted as the “holy grail” to reduce costs, focus on core business processes, improve product and service offerings, and speed up time to market. These benefits are only achieved by organizations that master the art of devising, deploying, and maintaining outsourcing relationships, for many these benefits remain elusive. The following article identifies the ten traps of outsourcing.

Details

Journal of Business Strategy, vol. 25 no. 2
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 1 June 2001

Zhiwei Zhu, Kathy Hsu and Joseph Lillie

Outsourcing has become an important strategic tool in today’s competitive business environment. This paper describes the steps within four stages of outsourcing process: planning…

14190

Abstract

Outsourcing has become an important strategic tool in today’s competitive business environment. This paper describes the steps within four stages of outsourcing process: planning, developing, implementing and evaluation. The role of outsourcing being not only a cost‐saving method but also part of the overall management strategy to focus on core competitiveness is emphasized in the discussion. Additionally, the detailed steps and considerations that are required for successful implementation of an outsourcing effort are also addressed.

Details

Management Decision, vol. 39 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 August 2006

Miroslav Rebernik and Barbara Bradač

The aim of this paper is to investigate possible opportunistic behaviour in transformational outsourcing relationship and to indicate possibilities how to avoid it.

2940

Abstract

Purpose

The aim of this paper is to investigate possible opportunistic behaviour in transformational outsourcing relationship and to indicate possibilities how to avoid it.

Design/methodology/approach

On the basis of literature survey authors discuss several important aspects of managing successful outsourcing relationship.

Findings

Holistic perception of business processes and expertise on critical success factors in transformational outsourcing become increasingly important. For a collaboration in which the process of transformational outsourcing will prosper participants must be interdependent (and be aware of their interdependence) and have a long‐termed strategic interest to cooperate.

Originality/value

Introduced insight is important for understanding the long‐term outsourcing partnership, and to recognize possible opportunistic behaviour and be able to avoid it.

Details

Kybernetes, vol. 35 no. 7/8
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 11 May 2012

Dinesh K. Gupta and Veerbala Sharma

The paper aims to study the status and future trend of outsourcing in science and technology libraries in Delhi.

1052

Abstract

Purpose

The paper aims to study the status and future trend of outsourcing in science and technology libraries in Delhi.

Design/methodology/approach

The paper is the result of the detailed literature survey and a survey conducted on 40 science and technology libraries of Delhi, India. Questionnaire and interview tools of survey were used to collect the primary data.

Findings

The paper reveals that most Indian libraries have been using selective outsourcing for many years, which has had favorable impact on these libraries. The majority of libraries outsource professional‐automated and non‐professional activities and services. They are still not ready to outsource professional traditional library activities and services, whereas the literature shows that internationally libraries outsourced tradition activities and services equally. Indian libraries also want to continue and expand the use of outsourcing in the future, especially digitization, RFID tagging and maintenance.

Originality/value

The Indian library science literature gives just the reflections of outsourcing being practiced in various libraries and no traces of survey(s) conducted in this area. This paper is the first attempt to glance at this widely used concept in almost all types of libraries in one way or another. This paper may open discussions on an area that is being used by all, although they refrain from accepting it, considering outsourcing as an anti‐professional activity.

Details

Library Management, vol. 33 no. 4/5
Type: Research Article
ISSN: 0143-5124

Keywords

Article
Publication date: 1 December 2000

Chris Lonsdale and Andrew Cox

Notes that outsourcing is just one of the means by which the boundary of the firm can be adjusted. Considers various other means such as conglomeration and horizontal and vertical…

10500

Abstract

Notes that outsourcing is just one of the means by which the boundary of the firm can be adjusted. Considers various other means such as conglomeration and horizontal and vertical integration. Focuses on outsourcing and its place in this bigger picture and discusses the history of outsourcing. Outlines concerns for managers and gives case examples from Rank Zerox and BP.

Details

Industrial Management & Data Systems, vol. 100 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 January 2005

Mohammad A. Hassanain and Saleh Al‐Saadi

The aim of this paper is to present a framework model for outsourcing asset management services in municipalities.

4622

Abstract

Purpose

The aim of this paper is to present a framework model for outsourcing asset management services in municipalities.

Design/methodology/approach

The authors have analysed the outsourcing of asset management services in the municipal sector. A survey document containing a series of questions was developed and issued to administrative (policy‐making) staff members at senior management level. These staff members are concerned with the strategic planning of facilities beyond the five‐year horizon.

Findings

The survey indicated that outsourcing is being utilized in almost all functions relating to the management of municipal infrastructure, and that the criterion for selecting a specific contractor for a service is lowest price. The findings section in the paper also presents a list of the advantages of outsourcing along with the rated priority of each, the disadvantages of outsourcing along with the rated severity of each, and the strategies that could be followed to achieve a successful outcome from the outsourcing process, along with the rated importance of each.

Originality/value

Development of the model was motivated by the desire to develop a standard methodology that senior managers in the municipalities can adopt as a reference policy guideline for the conduct of outsourcing of asset management services. The model builds on knowledge from the published literature and professional practice documented in the municipality of the City of Dammam, one of the largest cities in the Eastern Province of Saudi Arabia. The model serves to standardize process descriptions, the activities that need to be undertaken, and the methodology of how and what information needs to be communicated between activities. The framework also may provide a useful focus for others wishing to enter the outsourcing area.

Details

Facilities, vol. 23 no. 1/2
Type: Research Article
ISSN: 0263-2772

Keywords

Article
Publication date: 1 January 2006

Socrates J. Moschuris and Michael N. Kondylis

The purpose of this research is to investigate the extent of outsourcing, the decision‐making process, the impact of outsourcing, and the future trend of outsourcing in public…

2834

Abstract

Purpose

The purpose of this research is to investigate the extent of outsourcing, the decision‐making process, the impact of outsourcing, and the future trend of outsourcing in public hospitals in Greece.

Design/methodology/approach

A survey instrument was designed and mailed to a random sample of 100 public hospitals in Greece and 43 usable questionnaires were received, representing a response rate of 43 percent. The survey instrument focused on the extent to which public hospitals outsource services, the decision‐making process for choosing an external service provider, the impact of outsourcing, and the future trend of outsourcing in public healthcare organisations.

Findings

Public hospitals in Greece outsource a variety of activities. Cost savings and customer satisfaction are the main factors affecting the outsourcing decision. The cooperation with a contract service provider has led to significant improvement in service quality levels. Most users are satisfied with the performance of these companies and believe that there will be an increase in the usage of these services in the future.

Practical implications

It provides a decision‐making framework regarding outsourcing in public healthcare organisations.

Originality/value

This research fills the gap in the area of outsourcing in public hospitals in Greece.

Details

Journal of Health Organization and Management, vol. 20 no. 1
Type: Research Article
ISSN: 1477-7266

Keywords

Article
Publication date: 16 October 2007

Ranjan B. Kini

Currently, in various reports, Chile has been receiving better rankings than other Latin American countries, identifying it as a nation for offshoring many of the business process…

1344

Abstract

Purpose

Currently, in various reports, Chile has been receiving better rankings than other Latin American countries, identifying it as a nation for offshoring many of the business process outsourcing (BPO) and information and communication technology (ICT)‐related services. So, it has become important to analyze the Chilean ICT sector and the maturity of the outsourcing industry internally, to consider Chile as an ICT outsourcing destination. This paper seeks to address this matter.

Design/methodology/approach

A survey questionnaire is developed based on the ICT outsourcing literature, prior empirical research and outsourcing case studies. This questionnaire is translated into Spanish and distributed to CIOs of the 200 largest companies in Chile. The responses from the CIOs are used as the proxy measures and are analyzed for evaluation.

Findings

This study is conducted to understand and analyze the strategy adopted by Chilean companies to evaluate the need for ICT outsourcing. Also, the outsourcing capabilities and productively leveraging the built‐up local ICT capability are analyzed. The results of the study show that the vendor availability and contractibility are considered very important relative to a clear understanding of internal ICT cost structures in Chilean industry.

Research limitations/implications

Although the responses give a general sense to guide the researcher in the right direction, the low‐response rate to the survey hampered the study in obtaining robust results.

Practical implications

The study shows that Chilean CIOs are clearly familiar with outsourcing evaluation issues but lack environmental support in terms of legal and business tools and mechanics to build a stronger ICT industry.

Originality/value

This paper is one of very few research studies that have been conducted on Chile.

Details

Information Management & Computer Security, vol. 15 no. 5
Type: Research Article
ISSN: 0968-5227

Keywords

Article
Publication date: 23 February 2010

Leslie Willcocks

This paper aims to distill research findings that will influence CEO and top team behaviour.

1380

Abstract

Purpose

This paper aims to distill research findings that will influence CEO and top team behaviour.

Design/methodology/approach

The findings are based on case study research into 650 plus organisations and their outsourcing arrangements in Europe, Asia Pacific and USA.

Findings

CEOs have five reasons for ensuring IT‐based services outsourcing is included in their strategy discussions. IT outsourcing impacts upon a firm's market value. The sheer size of outsourcing expenditure merits senior management attention. Getting outsourcing wrong can seriously damage corporate health. At the same time, the evidence shows examples of outsourcing playing a strategic role for many businesses, and only the CEO has the real bargaining power to make outsourcing deliver this strategic dividend.

Research limitations/implications

The research was carried out by the LSE's Outsourcing Unit and uses in‐depth longitudinal case studies to identify outsourcing practices that work, in terms of achieving superior business results.

Practical implications

The paper spells out the reasons why CEO and top teams should be engaged in their outsourcing decision making and management.

Originality/value

The paper establishes well researched grounds for why CEOs and top teams need to act differently if more effective outsourcing is to be achieved.

Details

Strategic Outsourcing: An International Journal, vol. 3 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

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