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Innovation Through Outsourcing

In: The Handbook of Global Outsourcing and Offshoring

Author

Listed:
  • Ilan Oshri

    (Loughborough University)

  • Julia Kotlarsky

    (Aston University)

  • Leslie P. Willcocks

    (London School of Economics)

Abstract

There are many reasons that companies of various sizes see the benefit of outsourcing particular aspects of innovation, here defined generally for a business context as deploying new and creative ways of achieving productivity or topline growth (Coulter and Fersht, 2010). Quinn (2000) lists reasons that include limited resources and capabilities within the organisation, a shortage of specialist talent, management of multiple risks, attracting talent in the company’s non-specialised areas, and getting to market faster. So how can companies achieve innovation through all the various ways of sourcing available? Often they have an ad hoc approach to innovation, or what Linder et al. (2003) call a transactional approach. This approach, however, often fails to leverage organisational learning and develop innovation capabilities within the client firm as they work with suppliers. Clearly, an ad hoc approach cannot create a culture in which external contributions are accepted or welcomed. Moreover, it is difficult to measure innovative processes and outcomes when companies innovate on an ad hoc basis.

Suggested Citation

  • Ilan Oshri & Julia Kotlarsky & Leslie P. Willcocks, 2015. "Innovation Through Outsourcing," Palgrave Macmillan Books, in: The Handbook of Global Outsourcing and Offshoring, edition 3, chapter 0, pages 303-323, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-43744-0_13
    DOI: 10.1007/978-1-137-43744-0_13
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    Citations

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    Cited by:

    1. Hui Zhang & Huanhuan Xiong & Jianxin Xu, 2022. "Dynamic Simulation Research on the Effect of Governance Mechanism on Value Co-Creation of Blockchain Industry Ecosystem," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    2. Florian Wiesböck & Thomas Hess, 2020. "Digital innovations," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 75-86, March.
    3. Daria Arkhipova & Giovanni Vaia, 2018. "Integrating Third Parties in Digitally Mature Companies: Determinants of Innovation Success," Working Papers 03, Department of Management, Università Ca' Foscari Venezia.
    4. Thakur-Wernz, Pooja & Bruyaka, Olga & Contractor, Farok, 2020. "Antecedents and relative performance of sourcing choices for new product development projects," Technovation, Elsevier, vol. 90.
    5. Vaidyanathan Jayaraman & Zuoming Liu, 2019. "Aligning governance mechanisms with task features to improve service capabilities---an empirical study of professional service outsourcing in India," Operations Management Research, Springer, vol. 12(1), pages 19-39, June.
    6. Marfri Gambal & Aleksandre Asatiani & Julia Kotlarsky, 2022. "Strategic Innovation Through Outsourcing: A Theoretical Review," Papers 2206.00982, arXiv.org.
    7. Ezekiel Leo & Quang “Neo” Bui & Olayele Adelakun, 2022. "Outsourcing for Sustainable Performance: Insights from Two Studies on Achieving Innovation through Information Technology and Business Process Outsourcing," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    8. Spyros Arvanitis & Euripidis Loukis, 2020. "Reduction of ICT Investment Due to the 2008 Economic Crisis and ICT-Enabled Innovation Performance of Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 1-27, March.
    9. van der Valk, Wendy & Lumineau, Fabrice & Wang, Wenqian, 2019. "Research on contracting in supply chain management and related disciplines: A synthesis of scholarly recommendations and a discussion of future opportunities," Other publications TiSEM 55901a88-7fc5-4808-a47a-e, Tilburg University, School of Economics and Management.

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