Linking outsourcing to business strategy

Insinga, Richard C.; Werle, M. J.

doi:10.5465/ame.2000.3979816

Cited by 100 publications

(95 citation statements)

References 3 publications

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“…Contributing to the outsourcing literature, the findings show how politics and rationality can be complementary in some instances, while politics can disrupt the process and lead to failure in others. Much of the current outsourcing literature argues that rational goals and behaviour will lead to outsourcing success (McIvor, 2009;Momme and Hvolby, 2002;Insinga and Werle, 2000;Vining and Globerman, 1999). Our findings contradict this assertion because politics was present, and interacted with rational goals and behaviours in all of our cases.…”

Section: Introductioncontrasting

confidence: 57%

Self-interest or the greater good

Marshall

Ambrose

McIvor

et al. 2015

International Journal of Operations &Amp; Production Management

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Purpose – The purpose of this paper is to provide an understanding of the influence of political goals and behaviour on the outsourcing decision process and outcomes. Design/methodology/approach – The research used an exploratory longitudinal case-based approach. Eight outsourcing projects in three telecommunications companies were analysed from the initial decision to the outcome of the case. Findings – The authors show how political goals and behaviours influence the outsourcing decision process and inductively develop four political goals: personal reputation, attainment, elimination and control. The authors also identify three dynamic outsourcing paths: the personal reputation path, which leads to successful outcomes; the short-term attain and eliminate path leading to unsuccessful outcomes; and the destabilised path, which leads to mixed outcomes. All of these can be tested in other empirical settings. Research limitations/implications – The implications for outsourcing literature are that political intentions influence the decision process and outcomes. For theorists, the authors provide an understanding of how political and rational goals and behaviour interact to impact outsourcing outcomes: with political and rational goals and behaviour complementary in some instances. The limitations are that with a small sample the findings are generalisable to theoretical propositions rather than to a population. Practical implications – The implications for managers are the ability to identify and manage political goals that influence outsourcing decision process and outcomes. Originality/value – For the first time, the authors uncover the political goals that impact the outsourcing decision process and outcomes. The authors add to the outsourcing literature, transaction cost theory and resource-based theory by defining and understanding the political goals that complement these theories.

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Section: Introductioncontrasting

confidence: 57%

Self-interest or the greater good

Marshall

Ambrose

McIvor

et al. 2015

International Journal of Operations &Amp; Production Management

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“…Furthermore, although the terms 'core' and 'non-core' were used in the context of outsourcing in all the companies studied, it was not used as a basis for distinguishing between outsourced activities. The core/non-core logic assumes that core activities should be performed internally and all non-core activities should be outsourced (Gottfredson et al, 2005;Momme and Hvolby, 2002;Insinga and Werle, 2000;Quinn, 1999). However, due to the rapidly changing nature of the telecommunications industry the organizations had to access capabilities -whether deemed 'core' or 'non-core' -in order to compete.…”

Section: Discussion Of Findingsmentioning

confidence: 99%

“…Furthermore, the core competence concept developed by Hamel and Prahalad (1994) -which has evolved from the RBV -has been extremely influential in outsourcing practice with the distinction between core and non-core business firmly established in the lexicon of many practitioners (Gottfredson et al, 2005;Momme and Hvolby, 2002;Insinga and Werle, 2000;Quinn, 1999). A major concern of the resource-based view is how an organisation's capabilities develop and affect its competitive position and performance.…”

Section: The Resourced-based Viewmentioning

confidence: 99%

Influences and outcomes of outsourcing: Insights from the telecommunications industry

Marshall

McIvor

Lamming

2007

Journal of Purchasing and Supply Management

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“…Previous research has also found a number of potential risks associated with outsourcing such as less control over the outsourced business activity, a reduced innovation process due to the fact that the company loses the daily information and contact with the outsourced business activity as well as hidden costs and dependence on the new supplier (Insinga and Werle, 2000;Hendry, 1995;Utterback, 1996;Wasner, 1999).…”

Section: Core Business and Outsourcingmentioning

confidence: 99%

Energy related outsourcing - the case of ESCOs in the Swedish pulp and paper industry

Thollander

Ottosson

2011

First International Technology Management Conference

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Industrial energy efficiency is stated as a major means of reducing the threat of increased global warming, caused by human use of fossil fuels. Energy service companies (ESCOs) have been expected to play an important role in promoting energy efficiency in different sectors of the economy, including industry. Energy related outsourcing in the complex energy intensive pulp and paper industry, with a continuous production process, represents one of the more challenging types of industrial outsourcing. This paper studies the role of ESCOs as a method to promote energy efficiency in the Swedish pulp and paper industry. A questionnaire was used, complemented by in-depth interviews with mill executives in order to gain more knowledge of the issue. The main conclusion from this paper is that the utilization of ESCOs in the pulp and paper industry is higher in activities with a lower level of energy integration in the production process, and on the contrary, the utilization of ESCOs is lower with a higher level of energy integration in the production process. Since the PPI is a mature industry with a globally well-known and wellspread technique, results from this paper, may plausibly be generalized for PPIs in other countries as well.

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Linking outsourcing to business strategy

Cited by 100 publications

References 3 publications

Self-interest or the greater good

Self-interest or the greater good

Influences and outcomes of outsourcing: Insights from the telecommunications industry

Energy related outsourcing - the case of ESCOs in the Swedish pulp and paper industry

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