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Strategic Orientation of Outsourcing Firms: Demystifying Key Differentiators

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  • Kirti Sharda

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Abstract

Despite the importance of outsourcing firms and the highly competitive nature of the outsourcing industry, there has been minimal examination of outsourcing firm strategy. This paper investigates the strategic focus of 60 outsourcing firms using empirical data collected through survey and semi-structured interviews from 226 top management team respondents. Factor and cluster analysis reveal three outsourcing firm archetypes based on their strategic orientation, namely, super achievers, quality advocates and defenders. The dominance of these archetypes also varies across business activities offered by sample firms. By delineating dimensions underlying outsourcing form strategy and by identifying archetypes of strategic orientation, the paper provides an understanding of key differentiators of outsourcing firm performance. [W.P. No. 2009-12-03]

Suggested Citation

  • Kirti Sharda, 2010. "Strategic Orientation of Outsourcing Firms: Demystifying Key Differentiators," Working Papers id:2671, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2671
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    1. Glenn Milligan, 1980. "An examination of the effect of six types of error perturbation on fifteen clustering algorithms," Psychometrika, Springer;The Psychometric Society, vol. 45(3), pages 325-342, September.
    2. Cooper, Arnold C. & Willard, Gary E. & Woo, Carolyn Y., 1986. "Strategies of high performing new and small firms: A reexamination of the niche concept," Journal of Business Venturing, Elsevier, vol. 1(3), pages 247-260.
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    Keywords

    outsourcing; highly competitive; strategic focus; super achievers; quality advocates; defenders;

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