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Outsourcing of strategic resources and capabilities: Opposing choices in the commercial aircraft manufacturing

Author

Listed:
  • Aurélie Beaugency

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Mustafa Erdem Sakinç

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Damien Talbot

    (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020])

Abstract

According to the Resource-Based View, strategic resources and capabilities should be kept within the company because they are a source of competitive advantage. Using the VRIO model which constitute a part of resource based perspectives, aircraft flight controls represent an example of strategic resources and capabilities. Whereas Airbus has chosen to insource the design and manufacture of this system, Boeing has chosen to outsource it. This article is a preliminary part of a comprehensive effort to understand the underlying reasons for the diverging strategic choices made by these companies in defining their boundaries in the last two decades. We show that, through insourcing, Airbus has opted for long-term control of what is a critical component and seeks to extend and enrich its knowledge as shown by patent analysis. Boeing's strategy of shareholder value management, which mainly favors immediate financial performance, helps to explain the choice of outsourcing in order to reduce the cost of designing and producing flight controls. It thus appears necessary to go beyond resource-based views in order to analyze choices relating to outsourcing

Suggested Citation

  • Aurélie Beaugency & Mustafa Erdem Sakinç & Damien Talbot, 2015. "Outsourcing of strategic resources and capabilities: Opposing choices in the commercial aircraft manufacturing," Post-Print halshs-02180310, HAL.
    • Handle: RePEc:hal:journl:halshs-02180310
    DOI: 10.1108/JKM-01-2015-0040
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    Citations

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    Cited by:

    1. Poudeh, Hossein Dehghani & Cheshmberah, Mohsen & Torabi, Hassan & Karimi Gavareshki, Mohammad Hossein & Hosnavi, Reza, 2019. "Determining and prioritizing the factors influencing the outsourcing of Complex Product Systems R&D projects employing ANP and grey-DEMATEL method (case study: Aviation Industries Organization, Iran)," Technology in Society, Elsevier, vol. 56(C), pages 57-68.
    2. Giacomarra, Marcella & Shams, S.M. Riad & Crescimanno, Maria & Sakka, Georgia & Gregori, Gian Luca & Galati, Antonino, 2021. "Internal vs. external R&D teams: Evidences from the Italian wine industry," Journal of Business Research, Elsevier, vol. 128(C), pages 752-761.
    3. Kaur, Sarabjot & Gupta, Shivam & Singh, Sanjay Kumar & Perano, Mirko, 2019. "Organizational ambidexterity through global strategic partnerships: A cognitive computing perspective," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 43-54.
    4. Hassani, Abdeslam & Mosconi, Elaine, 2022. "Social media analytics, competitive intelligence, and dynamic capabilities in manufacturing SMEs," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    5. Damien Talbot, 2018. "L’industrie aéronautique civile européenne : vers une banalisation ?," Post-Print halshs-02007393, HAL.

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