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A Survey and Analysis of Outsourcing in East China

Author

Listed:
  • Fan, Tijun

    (East China University Of Science And Technology, School of Business)

  • Sandal, Leif K.

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

  • Kong, Jiehong

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

  • Li, Dandan

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

Abstract

The aim of this study is to investigate whether outsourcing activities in east china are associated with a theoretical framework derived from the literature. By the methodology of Statistics Package for the Social Science (SPSS), the results of survey indicate that outsourcing will more extensively practiced in the future, the principal outsourcing motivation are to reduce costs and focus on core businesses. The purchasing outsourcing has the largest correlation coefficients with short-term contract, the total outsourcing has a significant correlation coefficient with long-term contract at the level of =0.05. The findings indicate that high service quality and mutual trust are the main criteria for selecting outsourcing vendors. However, it is found that outsourcing satisfaction is generally low. The main benefits of outsourcing are to reduce cost, concentrate on core businesses and improve the service quality, while the main problems with outsourcing are legal disputes, disclosure of commercial secrets and conflicts with vendors.

Suggested Citation

  • Fan, Tijun & Sandal, Leif K. & Kong, Jiehong & Li, Dandan, 2009. "A Survey and Analysis of Outsourcing in East China," Discussion Papers 2009/5, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2009_005
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    File URL: http://hdl.handle.net/11250/163974
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    References listed on IDEAS

    as
    1. Osman Alp & Nesim K. Erkip & Refik Güllü, 2003. "Outsourcing Logistics: Designing Transportation Contracts Between a Manufacturer and a Transporter," Transportation Science, INFORMS, vol. 37(1), pages 23-39, February.
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    Cited by:

    1. Sekerka, Leslie E. & Stimel, Derek, 2011. "How durable is sustainable enterprise? Ecological sustainability meets the reality of tough economic times," Business Horizons, Elsevier, vol. 54(2), pages 115-124.

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    More about this item

    Keywords

    Outsourcing; strategy; contract; survey;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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