Critical review – Outsourcing: a paradigm shift

Kakabadse, Nada K.; Kakabadse, Andrew

doi:10.1108/02621710010377508

Cited by 205 publications

(176 citation statements)

References 101 publications

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“…One of the main arguments for outsourcing as a public management strategy is the specialization or delimitation of the activities that constitute the core business of the organization (Grimshaw, Vincent and Hillmott, 2002, Leiblein, Reuer and Dalsace, 2002, Kakabadse and Kakabadse, 2000, 2001. In the present study, it is assumed that the local public administration can define its distinctive activities, critical to its performance, and in which it must concentrate its attention.…”

Section: The Theoretical Bases Of Outsourcing As Management Strategy mentioning

confidence: 99%

La externalización como estrategia de gestión en los servicios públicos locales

Serna

Riba

2017

Rev. Adm. Pública

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As a contribution to the academic debate on the use of outsourcing as a formula for the provision of local public services, the article proposes to focus attention on political-institutional factors. The paper departs from the review of the main arguments highlighted by the literature and it contrasts their expected results in cross-sectional study based on data from all the municipalities with over 5,000 inhabitants in Catalonia, a Spanish Autonomous Community. A typology of municipalities is constructed through principal component analysis and a cluster analysis and the existence of differences in the percentage of outsourcing among types of municipalities is tested. The results show the relevance of political-institutional factors in the selection of the service provision formula and allow us to identify three strategies that propose outsourcing as a mechanism of flexibility of public management. Keywords: public services; local administration; outsourcing; public management strategies. A externalizaçao como estratégia da gestão de serviços públicos locaisComo contributo para o debate acadêmico sobre o uso da terceirização como um meio de fornecer serviços pú-blicos locais, o artigo se propõe a chamar a atenção para os fatores políticos e institucionais. A partir da revisão dos principais argumentos presentes na literatura, seu contraste empírico surge por meio de um estudo transversal que compreende todos os municípios com mais de 5 mil habitantes da Comunidade Autônoma da Catalunha, na Espanha. Elabora-se uma tipologia de municípios mediante uma análise de componentes principais e uma análise de clusters em que se contrastam as diferenças de percentagens de externalização entre diferentes tipos de municípios. Os resultados mostram a importância dos fatores políticos e institucionais na escolha da fórmula de prestação de serviços e permitem identificar três estratégias enfocam a externalização como um mecanismo de flexibilidade na gestão pública. Palavras-chave: serviços públicos; administração local; externalização; estratégias de gestão pública. La externalización como estrategia de gestión en los servicios públicos localesA modo de contribución al debate académico sobre el uso de la externalización como fórmula de provisión de los servicios públicos locales, el artículo plantea focalizar la atención en los factores político-institucionales. A partir de la revisión de los principales argumentos presentes en la literatura se plantea su contraste empírico a través de un estudio transversal que comprende todos los municipios de más de 5.000 habitantes de Catalunya, una Comunidad Autónoma española. Se construye una tipología de municipios mediante un análisis de componentes principales y un análisis clúster y se contrasta la existencia de diferencias en el porcentaje de externalización entre tipos de municipios. Los resultados muestran la relevancia de los factores político-institucionales en la selección de la fórmula de prestación de servicios y permiten identificar tres estrategias que plantean la externali...

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Section: The Theoretical Bases Of Outsourcing As Management Strategy mentioning

confidence: 99%

La externalización como estrategia de gestión en los servicios públicos locales

Serna

Riba

2017

Rev. Adm. Pública

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“…It is based on the assumption that a competitive advantage could be gained and sustained if external suppliers were contracted to carry out so-called non-core processes more efficiently. Several drivers for outsourcing have been reported: (i) economic -outsourcing allows economies of scale and the longevity of demand for the activity; (ii) quality -access to skills, the competency and specialization of potential suppliers and geographical coverage is increased; and (iii) innovation -improvements in quality through innovation, and the development of new services (Kakabadse and Kakabadse 2000). Outsourcing provides companies with greater capacity for flexibility, especially in access to rapidly emerging new technologies or the myriad of components in product development.…”

Section: Markets Network and Firmsmentioning

confidence: 99%

Organizing Product Innovation: Hierarchy, Market or Triple Helix Networks

2014

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This paper assesses the extent to which the organization of the innovation effort in firms, as well as the geographical scale at which this effort is pursued, affects the capacity to benefit from product innovations. Three alternative modes of organization are studied: hierarchy, market and triple-helix-type networks. Furthermore, we consider triple-helix networks at three geographical scales: local, national and international. These relationships are tested on a random sample of 763 firms located in five urban regions of Norway which reported having introduced new products or services during the preceding 3 years. The analysis shows that firms exploiting internal hierarchy or triple-helix networks with a wide range of partners managed to derive a significantly higher share of their income from new products, compared to those that mainly relied on outsourcing within the market. In addition, the analysis shows that the geographical scale of cooperation in networks, as well as the type of partner used, matters for the capacity of firms to benefit from product innovation. In particular, firms that collaborate in international triple-helix-type networks involving suppliers, customers and R&D institutions extract a higher share of their income from product innovations, regardless of whether they organize the processes internally or through the network.Keywords: Organization; Markets; Networks; Triple helix; Outsourcing; Firms; Norway Multilingual abstractPlease see Additional file 1 for translations of the abstract into the five official working languages of the United Nations and Portuguese.

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“…Moreover, the small specialist suppliers appeared to offer greater responsiveness and access to new technologies that the start-up firm in particular lacked. Kakabadse and Kakabadse (2000) argue that a solution to a firm's economies-of-scale predicament is to build a network of suppliers. Such a network would moderate the firm's need for vertical integration while allowing it to achieve economies of scale.…”

Section: Economies Of Scalementioning

confidence: 99%

Outsourcing maintenance in complex process industries

Maley

Kowalkowski

Brege

et al. 2015

Asia Pacific Journal of Marketing and Logistics

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Design/methodology/approachWe examine the choice of in-house operations versus buying maintenance in the Swedish mining industry through a qualitative case study approach. FindingsThe findings reveal a strong tendency to outsource maintenance. Research limitations/implicationsThis in turn has a strong influence on the firm's capabilities and long-term competitive advantage and sustainability. Practical implicationsBased on the empirical findings, we comment on the strength and weaknesses of the different outsourcing and attempt to find practical solutions that assist the firm in creating competitive advantage. Originality/valueThe unique contribution of this study is that it extends prior firm capabilities studies by investigating the impact of capability loss specifically in complex, intricate maintenance processes in a dynamic industry.3

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Critical review – Outsourcing: a paradigm shift

Cited by 205 publications

References 101 publications

La externalización como estrategia de gestión en los servicios públicos locales

La externalización como estrategia de gestión en los servicios públicos locales

Organizing Product Innovation: Hierarchy, Market or Triple Helix Networks

Outsourcing maintenance in complex process industries

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