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Procurement Insourcing Vs. Procurement Outsourcing: Evidence From Serbia

Author

Listed:
  • Slobodan Acimovic

    (Belgrade University, Serbia)

  • Veljko M. Mijuskovic

    (Belgrade University, Serbia)

  • Lazar Colic

    (Belgrade University, Serbia)

Abstract

One of the most important strategic decisions of a company is to choose whether to insource or outsource a particular group of activities or a business function. The trend of outsourcing those activities which do not form a part of the company core competences is becoming more and more present in business practice. The aim of the analysis within this paper is to review the mentioned trend from the position of organizing the company procurement activities. The analysis shows that there is no unique trend concerning outsourcing all logistics activities, which do not form a part of the company core competences. Unlike the majority of other logistics activities, which as non-basic, tend to be outsourced, procurement dominantly stays insourced. Finally, based on the empirical evidence obtained from a survey carried out among 52 companies in Serbia, it is concluded that even if procurement is outsourced, this trend is more present among service than production companies.

Suggested Citation

  • Slobodan Acimovic & Veljko M. Mijuskovic & Lazar Colic, 2016. "Procurement Insourcing Vs. Procurement Outsourcing: Evidence From Serbia," Eurasian Journal of Business and Management, Eurasian Publications, vol. 4(4), pages 34-45.
    • Handle: RePEc:ejn:ejbmjr:v:4:y:2016:i:4:p:34-45
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    References listed on IDEAS

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    1. Quélin, Bertrand & Duhamel, François, 2003. "Bringing Together Strategic Outsourcing and Corporate Strategy:: Outsourcing Motives and Risks," European Management Journal, Elsevier, vol. 21(5), pages 647-661, October.
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