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

Author

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

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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:proeco:v:126:y:2010:i:2:p:276-288
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    References listed on IDEAS

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    1. Holger Görg & Aoife Hanley, 2004. "Does Outsourcing Increase Profitability?," The Economic and Social Review, Economic and Social Studies, pages 267-288.
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    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, July.
    13. Lee, Ik Sun & Sung, C.S., 2008. "Single machine scheduling with outsourcing allowed," International Journal of Production Economics, Elsevier, pages 623-634.
    14. Holger Görg & Aoife Hanley, 2004. "Does Outsourcing Increase Profitability?," The Economic and Social Review, Economic and Social Studies, pages 267-288.
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    Citations

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    Cited by:

    1. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, pages 153-166.
    2. repec:spr:manint:v:57:y:2017:i:6:d:10.1007_s11575-017-0322-2 is not listed on IDEAS
    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. Hallikas, Jukka & Lintukangas, Katrina, 2016. "Purchasing and supply: An investigation of risk management performance," International Journal of Production Economics, Elsevier, pages 487-494.
    5. repec:spr:jglont:v:7:y:2017:i:1:d:10.1186_s40497-017-0084-0 is not listed on IDEAS
    6. 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, pages 284-298.
    7. 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, pages 136-147.
    8. Hsu, Chao-Che & Liou, James J.H., 2013. "An outsourcing provider decision model for the airline industry," Journal of Air Transport Management, Elsevier, pages 40-46.
    9. 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, pages 741-753.
    10. Marion, Tucker J. & Eddleston, Kimberly A. & Friar, John H. & Deeds, David, 2015. "The evolution of interorganizational relationships in emerging ventures: An ethnographic study within the new product development process," Journal of Business Venturing, Elsevier, vol. 30(1), pages 167-184.
    11. Schoenherr, Tobias & Narayanan, Sriram & Narasimhan, Ram, 2015. "Trust formation in outsourcing relationships: A social exchange theoretic perspective," International Journal of Production Economics, Elsevier, pages 401-412.

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