Performance implications of outsourcing: A meta-analysis

Lahiri, Somnath; Karna, Amit; Kalubandi, Sai Chittaranjan; Edacherian, Saneesh

doi:10.1016/j.jbusres.2021.10.061

Cited by 19 publications

(8 citation statements)

References 112 publications

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“…We explore the impact of offshore outsourcing of specialized knowledge intensive resources on the export intensity and financial performance of firms originating from emerging markets (EMs). Our study presents a sharp contrast to the received wisdom in the International Business (IB) scholarship that suggests that offshore outsourcing is primarily undertaken by large traditional multinational enterprises (MNEs) from the OECD countries intending to reduce their production costs by locating their low value adding activities, such as production, back-office operations and customer services, into EMs (Bertrand, 2011;Boussebaa, Sinha, & Gabriel, 2014;Jabbour, 2010;Lahiri, Karna, Kalubandi, & Edacherian, 2022;Manning, Larsen, & Bharati, 2015;Maskell, Pedersen, Petersen, & Dick-Nielsen, 2007;Sartor & Beamish, 2014). The extant literature recognizes that firms from EMs are fundamentally different from incumbent MNEs, and that they are constantly striving to upgrade their resource-base and skills as a way to compete with their peers, succeed in internationalization endeavors, move up the value chain and improve performance (Hernandez & Guillén, 2018;Kotabe & Kothari, 2016;Ramamurti, 2012).…”

Section: Introductionmentioning

confidence: 74%

How does offshore outsourcing of knowledge-intensive activities affect the exports and financial performance of emerging market firms?

2022

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We would like to thank the Editor, Jiatao Li, and three anonymous reviewers for valuable feedback that contributed to improve the quality of the paper. We are also thankful to Keith Brouthers, Igor Filatotchev, George Kapetanios, Jakob Müllner and Mike Wright for suggestions on previous versions of this paper. We benefited from the comments of participants at the 5 th WU IB & Finance Paper Development Workshop in London (UK, 2018) and the 46 th AIB UK&I Conference in Brighton (UK, 2019).

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Section: Introductionmentioning

confidence: 74%

How does offshore outsourcing of knowledge-intensive activities affect the exports and financial performance of emerging market firms?

2022

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“…Akhtar (2022) carried out literature review of agile and sustainable MOP selection. Lahiri et al . (2022) carried out meta-analysis of 106 primary studies from 1992 to 2019 to examine the effect of industrial nature of activity (manufacturing vs. services), value chain activity (core vs. non-core) and provider’s location (domestic vs. international) in sourcing on firm performance and found that outsourcing has positive relationship with firm performance for non-core and international outsourcing equally manufacturing and service sector.…”

Section: Literature Reviewmentioning

confidence: 99%

A novel stochastic fuzzy decision model for agile and sustainable global manufacturing outsourcing partner selection in footwear industry

Akhtar

Gunasekaran

Kayıkçı

2023

JEIM

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PurposeThe decision-making to outsource and select the most suitable global manufacturing outsourcing partner (MOP) is complex and uncertain due to multiple conflicting qualitative and quantitative criteria as well as multiple alternatives. Vagueness and variability exist in ratings of criteria and alternatives by group of decision-makers (DMs). The paper provides a novel Stochastic Fuzzy (SF) method for evaluation and selection of agile and sustainable global MOP in uncertain and volatile business environment.Design/methodology/approachFour main selection criteria for global MOP selection were identified such as economic, agile, environmental and social criteria. Total 16 sub-criteria were selected. To consider the vagueness and variability in ratings by group of DMs, SF method using t-distribution or z-distribution was adopted. The criteria weights were determined using the Stochastic Fuzzy-CRiteria Importance Through Intercriteria Correlation (SF-CRITIC), while MOP selection was carried out using Stochastic Fuzzy-VIseKriterijumskaOptimizacija I KompromisnoResenje (SF-VIKOR) in the case study of footwear industry. Sensitivity analysis was performed to test the robustness of the proposed model. A comparative analysis of SF-VIKOR and VIKOR was made.FindingsThe worker’s wages and welfare, product price, product quality, green manufacturing process and collaboration with partners are the most important criteria for MOP selection. The MOP3 was found to be the best agile and sustainable global MOP for the footwear company. In sensitivity analysis, significance level is found to have important role in MOP ranking. Hence, the study concluded that integrated SF-CRITIC and SF-VIKOR is an improved method for MOP selection problem.Research limitations/implicationsIn a group decision-making, ambiguity, impreciseness and variability are found in relative ratings. Fuzzy variant Multi-Criteria Decision-Making methods cover impreciseness in ratings but not the variability. On the other hand, deterministic models do not cover either. Hence, the stochastic method based on the probability theory combining fuzzy theory is proposed to deal with decision-making problems in imprecise and uncertain environments. Most notably, the proposed model has novelty as it captures and reveals both the stochastic perspective and the fuzziness perspective in rating by group of DMs.Practical implicationsThe proposed multi-criteria group decision-making model contributes to the sustainable and agile footwear supply chain management and will help the policymakers in selecting the best global MOP.Originality/valueTo the best of the authors’ knowledge, SF method has not been used to select MOP in the existing literature. For the first time, integrated SF-CRITIC and SF-VIKOR method were applied to select the best agile and sustainable MOP under uncertainty. Unlike other studies, this study considered agile criteria along with triple bottom line sustainable criteria for MOP selection. The novel method of SF assessment contributes to the literature and put forward the managerial implication for improving agility and sustainability of global manufacturing outsourcing in footwear industry.

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“…Helo et al (2021) designed Cloud Ecosystem for cloud-based collaborative manufacturing portals for sheet metal manufacturing companies. Lahiri et al (2022) carried out meta-analysis to examine the effect of industrial nature of activity (manufacturing vs. services), value chain activity (core vs. non-core), and provider's location (domestic vs. international) in sourcing on firm performance and found that effect is stronger for non-core and international outsourcing equally for manufacturing and service outsourcing.…”

Section: Review Of Literaturementioning

confidence: 99%

Sustainable and agile manufacturing outsourcing partner selection: a literature review

Akhtar

2022

Int. J. Prod. Manag. Eng.

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Outsourcing to third party to manage non-core activities helps the firm to focus on core activities. Manufacturing firms are outsourcing product development, manufacturing, logistics, customer care etc. to enhance production capacity and flexibility, and to reduce operational costs, which in turn can improve profitability and competitive advantage of the enterprise. Sustainability in operations and supply chain is gaining momentum due to increased global environmental concern, pressures from consumers and communities, and enforced regulations. Volatile and uncertain business environment necessitates the adoption of agility and flexibility to effectively manage manufacturing and supply chain. Globalisation has made the market very competitive and hence manufacturing firms are adopting manufacturing outsourcing to third parties. Selecting a sustainable and agile manufacturing outsourcing partner (MPS) is crucial as it will improve sustainability, efficiency, and effectiveness of the supply chain and competitive advantage to the firm. Detailed literature review on sustainable and agile manufacturing outsourcing partner selection has been carried out from EBSCO data base and Goggle scholar. Selection criteria used are classified into agile, operational, economic, environmental and social. The techniques use are mostly multi criteria decision making methods (MCDM) while few have adopted programming techniques. Discussion, implication and the scope of future work is also provided.

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Performance implications of outsourcing: A meta-analysis

Cited by 19 publications

References 112 publications

How does offshore outsourcing of knowledge-intensive activities affect the exports and financial performance of emerging market firms?

How does offshore outsourcing of knowledge-intensive activities affect the exports and financial performance of emerging market firms?

A novel stochastic fuzzy decision model for agile and sustainable global manufacturing outsourcing partner selection in footwear industry

Sustainable and agile manufacturing outsourcing partner selection: a literature review

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