Outsourcing in startups

Abstract

Purpose The purpose of this paper is to identify the main activities that startups outsource and the elements involved in outsourcing decisions. Design/methodology/approach A multi-case study composed of Brazilian startups was conducted. Data through interviews and secondary sources were obtained. Two groups of startups were considered and analyzed comparatively: startups in the development stage and in the sales stage. Findings The findings show that even though the literature suggests that the core business should not be outsourced, some startups do have to outsource this kind of activity. That was the main difference found between startups in the sales stage and in the development stage: the former group has a solid structure, knowledge and resources, so they can keep the core business inside the firm; whereas the latter group has little experience, scarce knowledge and resources, making outsourcing a more attractive alternative. Originality/value Theoretically, this paper approaches a perspective underexplored in the innovation and management literature: outsourcing in startups. It highlights how outsourcing, as a decision between making and buying, can help startups to improve success potential. In practice, this paper discusses and demonstrates why and what can be outsourced by startups in the development and in the sales stages to overcome their limitations and, consequently, achieve better innovative results.

Sustainable technology development during intellectual property rights commercialisation by university startups

“…Outsourcing (Steinbruch et al, 2022), scalable production process (Mossberg et al, 2018) Cross-complementary skills and expertise (Clarysse and Moray, 2004), motivation and sharing the same end goals (Clarysse and Moray, 2004;Vanaelst et al, 2006) Business model viability Nunes et al (2022) Lean model canvas (Ries, 2011), Business model canvas (Osterwalder and Pigneur, 2010) Source: Authors' own work Sustainable technology development development and business sustainability". By ensuring STD during the Valley of Death phase, the success of IPR commercialisation by university startups can be enhanced.…”

Buyer-supplier relationships in startups : An analysis of factors that drive startup attractiveness to suppliers

“…Outsourcing purchasing is a strategy consistent with the work of Bustamante (2019), who suggested that startups can save organizational resources by outsourcing. Moreover, Steinbruch et al (2022) suggested that early-stage startups can use outsourcing to address their limited experience and knowledge. However, as a result of purchasing organization advantages and disadvantages, startups should select which design is appropriate to achieve the desired level of operative excellence while balancing department size, process formalization, and standardization.…”