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Linkages between service sourcing decisions and competitive advantage: A review, propositions, and illustrating cases

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  • Nordin, Fredrik

Abstract

This paper focuses on linkages between strategic service sourcing decisions and the competitiveness of business firms. It responds to calls for more research focusing on the outcomes of services and the nature and durability of service benefits and contributes with relatively comprehensive, detailed and managerially oriented knowledge regarding the linkages between service sourcing and competitive advantage. The paper reviews the literature and develops propositions regarding how different make-or-buy decisions, supply-base structures, and types of buyer-seller relationships influence the possibility of simultaneously maintaining positive bonds with customers, keeping costs low, and developing valued and differentiated offerings. The practical applications of the propositions are illustrated with four case studies.

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  • 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.
  • Handle: RePEc:eee:proeco:v:114:y:2008:i:1:p:40-55
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    References listed on IDEAS

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    1. Janet Y Murray & Masaaki Kotabe & Albert R Wildt, 1995. "Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 181-202, March.
    2. Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
    3. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    4. Allen, Sandy & Chandrashekar, Ashok, 2000. "Outsourcing services: The contract is just the beginning," Business Horizons, Elsevier, vol. 43(2), pages 25-34.
    5. Bardhan, Ashok Deo & Kroll, Cynthia, 2003. "The New Wave of Outsourcing," Fisher Center for Real Estate & Urban Economics, Research Reports qt02f8z392, Fisher Center for Real Estate & Urban Economics, UC Berkeley.
    6. Gérard P. Cachon & Patrick T. Harker, 2002. "Competition and Outsourcing with Scale Economies," Management Science, INFORMS, vol. 48(10), pages 1314-1333, October.
    7. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    8. Karkkainen, Hannu & Piippo, Petteri & Tuominen, Markku, 2001. "Ten tools for customer-driven product development in industrial companies," International Journal of Production Economics, Elsevier, vol. 69(2), pages 161-176, January.
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    Cited by:

    1. Bustinza, O.F. & Arias-Aranda, D. & Gutierrez-Gutierrez, L., 2010. "Outsourcing, competitive capabilities and performance: an empirical study in service firms," International Journal of Production Economics, Elsevier, vol. 126(2), pages 276-288, August.
    2. Chih-An Lin & Homin Chen, 2018. "Deconstructing B2B, co-creation and service deployment in East Asia: evidence from Taiwan and PRC manufacturers," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(3), pages 351-370, May.
    3. 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.
    4. Paiola, Marco & Saccani, Nicola & Perona, Marco & Gebauer, Heiko, 2013. "Moving from products to solutions: Strategic approaches for developing capabilities," European Management Journal, Elsevier, vol. 31(4), pages 390-409.
    5. Han, Jiqin & Trienekens, Jacques H. & (Onno) Omta, S.W.F., 2011. "Relationship and quality management in the Chinese pork supply chain," International Journal of Production Economics, Elsevier, vol. 134(2), pages 312-321, December.
    6. Shao, Junyang & Moser, Roger & Henke, Michael, 2012. "Multidimensional supply performance framework: A conceptual development and empirical analysis," International Journal of Production Economics, Elsevier, vol. 138(1), pages 26-34.
    7. Ayala, Néstor Fabián & Paslauski, Carolline Amaral & Ghezzi, Antonio & Frank, Alejandro Germán, 2017. "Knowledge sharing dynamics in service suppliers' involvement for servitization of manufacturing companies," International Journal of Production Economics, Elsevier, vol. 193(C), pages 538-553.
    8. Hsu, Wen-Kai K. & Huang, Show-Hui S. & Yu, Hong-Fwu, 2009. "Shipper behavior to use EC services in liner shipping," International Journal of Production Economics, Elsevier, vol. 122(1), pages 56-66, November.
    9. Hsiao, H.I. & Kemp, R.G.M. & van der Vorst, J.G.A.J. & (Onno) Omta, S.W.F., 2010. "A classification of logistic outsourcing levels and their impact on service performance: Evidence from the food processing industry," International Journal of Production Economics, Elsevier, vol. 124(1), pages 75-86, March.
    10. Saccani, Nicola & Visintin, Filippo & Rapaccini, Mario, 2014. "Investigating the linkages between service types and supplier relationships in servitized environments," International Journal of Production Economics, Elsevier, vol. 149(C), pages 226-238.
    11. Subramanian, Nachiappan & Rahman, Shams & Abdulrahman, Muhammad D., 2015. "Sourcing complexity in the Chinese manufacturing sector: An assessment of intangible factors and contractual relationship strategies," International Journal of Production Economics, Elsevier, vol. 166(C), pages 269-284.
    12. Alina-Cristina BACEA & Anca BORZA, 2015. "Outsourcing: Why And Why Not?," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 13-20, November.
    13. Han, Chaodong & Porterfield, Tobin & Li, Xiaolin, 2012. "Impact of industry competition on contract manufacturing: An empirical study of U.S. manufacturers," International Journal of Production Economics, Elsevier, vol. 138(1), pages 159-169.
    14. Bustinza, Oscar F. & Lafuente, Esteban & Rabetino, Rodrigo & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2019. "Make-or-buy configurational approaches in product-service ecosystems and performance," Journal of Business Research, Elsevier, vol. 104(C), pages 393-401.
    15. Lee, Chaehwa & Wilhelm, Wilbert, 2010. "On integrating theories of international economics in the strategic planning of global supply chains and facility location," International Journal of Production Economics, Elsevier, vol. 124(1), pages 225-240, March.
    16. Hallikas, Jukka & Immonen, Mika & Pynnönen, Mikko & Mikkonen, Karri, 2014. "Service purchasing and value creation: Towards systemic purchases," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 53-61.

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