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Outsourcing, competitive capabilities and performance: an empirical study in service firms

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  • Bustinza, O.F.
  • Arias-Aranda, D.
  • Gutierrez-Gutierrez, L.
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    Abstract

    In analyzing the relationship between outsourcing and firm performance, different authors have studied the effects that outsourcing can have on the firm. Even if we establish an initial link between outsourcing and representative measurements of the results achieved through cost savings or the creation of greater market value, no author seems to have established a precise relationship between outsourcing and the most representative measures of company performance (organizational and business performance). After reviewing the literature on this issue, we believe that research has undervalued the impact that outsourcing decisions have on our competitive capabilities. After making an empirical study of service firms, this article finds that there is a relationship between outsourcing decisions and company performance which is articulated via the impact of outsourcing decisions on the firm's competitive capabilities.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 126 (2010)
    Issue (Month): 2 (August)
    Pages: 276-288

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    Handle: RePEc:eee:proeco:v:126:y:2010:i:2:p:276-288

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Outsourcing Strategic decisions Competitive capabilities Performance;

    References

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    1. Antelo, Manel & Bru, Lluis, 2010. "Outsourcing or restructuring: The dynamic choice," International Journal of Production Economics, Elsevier, vol. 123(1), pages 1-7, January.
    2. Abernethy, Margaret A. & Lillis, Anne M., 1995. "The impact of manufacturing flexibility on management control system design," Accounting, Organizations and Society, Elsevier, vol. 20(4), pages 241-258, May.
    3. Pinjala, Srinivas Kumar & Pintelon, Liliane & Vereecke, Ann, 2006. "An empirical investigation on the relationship between business and maintenance strategies," International Journal of Production Economics, Elsevier, vol. 104(1), pages 214-229, November.
    4. Görg, Holger & Hanley, Aoife, 2004. "Does Outsourcing Increase Profitability?," IZA Discussion Papers 1372, Institute for the Study of Labor (IZA).
    5. Nordin, Fredrik, 2008. "Linkages between service sourcing decisions and competitive advantage: A review, propositions, and illustrating cases," International Journal of Production Economics, Elsevier, vol. 114(1), pages 40-55, July.
    6. Jonathan P. Doh, 2005. "Offshore Outsourcing: Implications for International Business and Strategic Management Theory and Practice," Journal of Management Studies, Wiley Blackwell, vol. 42(3), pages 695-704, 05.
    7. Binder, Mario & Clegg, Ben, 2007. "Enterprise management: A new frontier for organisations," International Journal of Production Economics, Elsevier, vol. 106(2), pages 409-430, April.
    8. Zhang, Cheng & Dhaliwal, Jasbir, 2009. "An investigation of resource-based and institutional theoretic factors in technology adoption for operations and supply chain management," International Journal of Production Economics, Elsevier, vol. 120(1), pages 252-269, July.
    9. Bernd Görzig & Andreas Stephan, 2002. "Outsourcing and Firm-level Performance," Discussion Papers of DIW Berlin 309, DIW Berlin, German Institute for Economic Research.
    10. McCarthy, Ian & Anagnostou, Angela, 2004. "The impact of outsourcing on the transaction costs and boundaries of manufacturing," International Journal of Production Economics, Elsevier, vol. 88(1), pages 61-71, March.
    11. Tate, Wendy L. & Ellram, Lisa M. & Bals, Lydia & Hartmann, Evi, 2009. "Offshore outsourcing of services: An evolutionary perspective," International Journal of Production Economics, Elsevier, vol. 120(2), pages 512-524, August.
    12. Luis Araujo & Anna Dubois & Lars-Erik Gadde, 2003. "The Multiple Boundaries of the Firm," Journal of Management Studies, Wiley Blackwell, vol. 40(5), pages 1255-1277, 07.
    13. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
    14. Jeffrey G. Miller & Aleda V. Roth, 1994. "A Taxonomy of Manufacturing Strategies," Management Science, INFORMS, vol. 40(3), pages 285-304, March.
    15. Lee, Ik Sun & Sung, C.S., 2008. "Single machine scheduling with outsourcing allowed," International Journal of Production Economics, Elsevier, vol. 111(2), pages 623-634, February.
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    Cited by:
    1. Garcia, Fernanda A. & Marchetta, Martin G. & Camargo, Mauricio & Morel, Laure & Forradellas, Raymundo Q., 2012. "A framework for measuring logistics performance in the wine industry," International Journal of Production Economics, Elsevier, vol. 135(1), pages 284-298.
    2. Hsu, Chao-Che & Liou, James J.H., 2013. "An outsourcing provider decision model for the airline industry," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 40-46.
    3. Yeung, Kwong & Zhou, Honggeng & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The impact of third-party logistics providers' capabilities on exporters' performance," International Journal of Production Economics, Elsevier, vol. 135(2), pages 741-753.
    4. Arnold, Ulli & Neubauer, Joerg & Schoenherr, Tobias, 2012. "Explicating factors for companies’ inclination towards corruption in Operations and supply chain management: An exploratory study in Germany," International Journal of Production Economics, Elsevier, vol. 138(1), pages 136-147.
    5. Feng, Bo & Fan, Zhi-Ping & Li, Yanzhi, 2011. "A decision method for supplier selection in multi-service outsourcing," International Journal of Production Economics, Elsevier, vol. 132(2), pages 240-250, August.

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