Impact of strategic decision making for outsourcing on managing manufacturing

International Journal of Operations and Production Management

Volumn 31, Issue 9, 2011, Pages 935-965

  Dekkers, Rob ^a  

^a UNIVERSITY OF THE WEST OF SCOTLAND   (United Kingdom)

Author keywords

Decision making; Manufacturing systems; Operations management; Outsourcing

Indexed keywords

EID: 80052445264     PISSN: 01443577     EISSN: None     Source Type: Journal    
DOI: 10.1108/01443571111165839     Document Type: Review

References (114)

1. Akarte, M.M., Surendra, N.V., Ravi, B. and Rangaraj, N. (2001), "Web based casting supplier evaluation using analytical hierarchy process" in Journal of the Operational Research Society, Vol. 52, No. 5, pp. 511-22.
2. Allan, G. (2003), "A critique of using grounded theory as a research method" in Electronic Journal of Business Research Methods, Vol. 2, No. 1, pp. 1-10.
3. Arnold, U. (2000), "New dimensions of outsourcing: a combination of transaction cost economics and the core competencies concept" in European Journal of Purchasing & Supply Management, Vol. 6, No. 1, pp. 23-9.
4. Avella, L. (1999), "Focal points in manufacturing strategic planning in Spain" in International Journal of Operations & Production Management, Vol. 19, No. 12, pp. 1292-317.
5. Azevedo, A.L. and Sousa, J.P. (2000), "Order planning for networked make-to-order enterprises - a case study" in Journal of the Operational Research Society, Vol. 51, No. 10, pp. 1116-27.
6. Barney, J.B. (1991), "Firm resources and sustained competitive advantage" in Journal of Management, Vol. 17, No. 1, pp. 99-120.
7. Barthélemy, J. (2003), "The seven deadly sins of outsourcing" in Academy of Management Executive, Vol. 17, No. 2, pp. 87-100.
8. Berggren, C. and Bengtsson, L. (2004), "Rethinking outsourcing in manufacturing: a tale of two telecom firms" in European Management Journal, Vol. 22, No. 2, pp. 211-23.
9. Blaxill, M.F. and Hout, T.M. (1991), "The fallacy of the overhead quick fix" in Harvard Business Review, Vol. 69, No. 4, pp. 93-101.
10. Broedner, P., Kinkel, S. and Lay, G. (2009), "Productivity effects of outsourcing: new evidence on the strategic importance of vertical integration decisions" in International Journal of Operations & Production Management, Vol. 29, No. 2, pp. 127-50.
11. Busi, M. and McIvor, R. (2008), "Setting the outsourcing research agenda: the top-10 most urgent outsourcing areas" in Strategic Outsourcing: An International Journal, Vol. 1, No. 3, pp. 185-97.
12. Butala, P. and Sluga, A. (2002), "Dynamic structuring of distributed manufacturing systems" in Advanced Engineering Informatics, Vol. 16, No. 2, pp. 127-33.
13. Cánez, L.E., Platts, K.W. and Probert, D.R. (2000), "Developing a framework for make-or-buy decisions" in International Journal of Operations & Production Management, Vol. 20, No. 11, pp. 1313-30.
14. Caputo, A.C. and Palumbo, M. (2005), "Manufacturing re-insourcing in the textile industry" in Industrial Management & Data Systems, Vol. 105, No. 2, pp. 193-207.
15. Choi, T.Y. and Hartley, J.L. (1996), "An exploration of supplier selection practices across the supply chain" in Journal of Operations Management, Vol. 14, No. 4, pp. 333-43.
16. Coase, R.H. (1937), "The nature of the firm" in Economica, Vol. 4, No. 16, pp. 386-405.
17. Cua, K.O., McKone, K.E. and Schroeder, R.G. (2001), "Relationships between implementation of TQM, JIT, and TPM and manufacturing performance" in Journal of Operations Management, Vol. 19, No. 6, pp. 675-94.
18. Das, T.K. and Teng, B.-S. (2001), "Trust, control, and risk in strategic alliances: an integrated framework" in Organization Studies, Vol. 22, No. 2, pp. 251-83.
19. de Boer, L., Gayton, J. and Arroyo, P. (2006), "A satisficing model of outsourcing" in Supply Chain Management: An International Journal, Vol. 11, No. 5, pp. 444-55.
20. Dekkers, R. (2000), "Decision models for outsourcing and core competencies in manufacturing" in International Journal of Production Research, Vol. 38, No. 7, pp. 4085-96.
21. Dekkers, R. (2002), "Strategic capacity management: meeting technological demands and performance criteria" in International Journal of Production Research, Vol. 40, No. 15, pp. 3895-911.
22. Dekkers, R. (2005), (R)Evolution, Organizations and the Dynamics of the Environment, Springer, New York, NY.
23. Dekkers, R. (2006), "Engineering management and the order entry point" in International Journal of Production Research, Vol. 44, Nos 18/19, pp. 4011-25.
24. Dekkers, R. and Bennett, D. (2009), "Industrial networks of the future: review of research and practice" in Dekkers, R. (Ed.), Dispersed Manufacturing Networks: Challenges for Research and Practice, Heidelberg, Springer, pp. 13-34.
25. Dey, I. (1993), Qualitative Data Analysis, Routledge, London.
26. Dowlatshahi, S. (2000), "Designer-buyer-supplier interface: theory versus practice" in International Journal of Production Economics, Vol. 63, No. 2, pp. 111-30.
27. Dyer, J.H. (1997), "Effective interim collaboration: how firms minimize transaction costs and maximise transaction value" in Strategic Management Journal, Vol. 18, No. 7, pp. 535-56.
28. Dyer, J.H. and Singh, H. (1998), "The relational view: cooperative strategy and sources of interorganizational competitive advantage" in Academy of Management Review, Vol. 23, No. 4, pp. 660-79.
29. Espino-Rodríguez, T.F. and Padrón-Robaina, V. (2006), "A review of outsourcing from the resource-based view of the firm" in International Journal of Management Reviews, Vol. 8, No. 1, pp. 49-70.
30. Ettlie, J.E. and Sethuraman, K. (2002), "Locus of supply and global manufacturing" in International Journal of Operations & Production Management, Vol. 22, No. 3, pp. 349-70.
31. Fahy, J. and Smithee, A. (1999), "Strategic marketing and the resource based view of the firm", Academy of Marketing Science Review, Vol. 10.
32. Fan, Y. (2000), "Strategic outsourcing: evidence from British companies" in Marketing Intelligence & Planning, Vol. 18, No. 4, pp. 213-19.
33. Fill, C. and Visser, E. (2000), "The outsourcing dilemma: a composite approach to the make or buy decision" in Management Decision, Vol. 38, No. 1, pp. 43-50.
34. Freytag, P.V. and Kirk, L. (2003), "Continuous strategic outsourcing" in Journal of Purchasing & Supply Management, Vol. 9, No. 3, pp. 135-50.
35. Friedrich, S.A. (2000), "Was ist 'Core' und was ist 'Non-Core'?" in io Management, Vol. 69, No. 4, pp. 18-23.
36. Frost, F.A. (2003), "The use of strategic tools by small and medium-sized enterprises: an Australasian study" in Strategic Change, Vol. 12, No. 1, pp. 49-62.
37. Geyskens, I., Steenkamp, J.-B.E.M. and Kumar, N. (2006), "Make, buy, or ally: a transaction cost theory meta-analysis" in Academy of Management Journal, Vol. 49, No. 3, pp. 519-43.
38. Ghodsypour, S.H. and O'Brien, C. (1998), "A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming" in International Journal of Production Economics, Vol. 56-57, No. 1, pp. 199-212.
39. Ghoshal, S. and Moran, P. (1996), "Bad for practice: a critique of the transaction cost theory" in Academy of Management Review, Vol. 21, No. 1, pp. 13-47.
40. Gilley, K.M. and Rasheed, A. (2000), "Making more by doing less: an analysis of outsourcing and its effects on firm performance" in Journal of Management, Vol. 26, No. 4, pp. 763-90.
41. Glaser, B.J. and Strauss, A.L. (1967), The Discovery of Grounded Theory, Aldine, Chicago, IL.
42. Görg, H. and Hanley, A. (2004), "Does outsourcing increase profitability?" in The Economic and Social Review, Vol. 35, No. 3, pp. 267-88.
43. Görzig, B. and Stephan, A. (2002), Outsourcing and Firm-level Performance, German Institute for Economic Research, Berlin, Discussion Paper No. 309.
44. Grover, V. and Malhotra, M.K. (2003), "Transaction cost framework in operations and supply chain management research: theory and measurement" in Journal of Operations Management, Vol. 21, No. 4, pp. 457-73.
45. Gunasekaran, A., Patel, C. and Tirtiroglu, E. (2001), "Performance measures and metrics in a supply chain environment" in International Journal of Operations & Production Management, Vol. 21, Nos 1/2, pp. 71-87.
46. Hafeez, K., Zhang, Y. and Malak, N. (2002), "Core competence for sustainable competitive advantage: a structure methodology for identifying core competence" in IEEE Transaction on Engineering Management, Vol. 49, No. 1, pp. 28-35.
47. Hätönen, J. and Eriksson, T. (2009), "30+ years of research and practice of outsourcing - exploring the past and anticipating the future" in Journal of International Management, Vol. 15, No. 2, pp. 142-55.
48. Hayes, R.H. and Pisano, G.P. (1994), "Beyond world-class: the new manufacturing strategy" in Harvard Business Review, Vol. 72, No. 1, pp. 77-85.
49. Hemphill, T.A. and Vonortas, N.S. (2003), "Strategic research partnerships: a managerial perspective" in Technology Analysis & Strategic Management, Vol. 15, No. 2, pp. 255-71.
50. Hicks, C., McGovern, T. and Earl, C.F. (2000), "Supply chain management: a strategic issue in engineer to order manufacturing" in International Journal of Production Economics, Vol. 65, No. 2, pp. 179-90.
51. Holcomb, T.R. and Hitt, M.A. (2007), "Towards a model of strategic outsourcing" in Journal of Operations Management, Vol. 25, No. 2, pp. 464-81.
52. Holweg, M. and Pil, F.K. (2008), "Theoretical perspective on the coordination of supply chains" in Journal of Operations Management, Vol. 26, No. 3, pp. 389-406.
53. Hoopes, D.G., Madsen, T.L. and Walker, G. (2003), "Why is there a resource-based view? Toward a theory of competitive heterogeneity" in Strategic Management Journal, Vol. 24, No. 10, pp. 889-902.
54. Huemer, L. (2004), "Balancing between stability and variety: identity and trust trade-offs in networks" in Industrial Marketing Management, Vol. 33, No. 3, pp. 251-9.
55. Humphreys, P., McIvor, R. and Huang, G. (2002), "An expert system for evaluating the make or buy decision" in Computers & Industrial Engineering, Vol. 42, Nos 2-4, pp. 567-85.
56. Javidan, M. (1998), "Core competence: what does it mean in practice?" in Long Range Planning, Vol. 31, No. 1, pp. 60-71.
57. Jonash, R.S. (1997), "Strategic technology leveraging: making outsourcing work for you" in IEEE Engineering Management Review, Vol. 25, No. 2, pp. 90-5.
58. Kinkel, S., Lay, G. and Maloca, S. (2008), "Patterns of internationalization of German SMEs: surveying manufacturing offshoring" in Dana, L.P., Welpe, I.M., Han, M. and Ratten, V. (Eds.), Handbook of Research on European Business and Entrepreneurship, Edward Elgar, Cheltenham, pp. 246-62.
59. Kotabe, M. and Mol, M.J. (2009), "Outsourcing and financial performance: a negative curvilinear effect" in Journal of Purchasing & Supply Management, Vol. 15, No. 4, pp. 205-13.
60. Kremic, T., Tukel, O.I. and Rom, W.O. (2006), "Outsourcing decision support: a survey of benefits, risks, and decision factors" in Supply Chain Management: An International Journal, Vol. 11, No. 6, pp. 467-82.
61. Lazonick, W. and O'Sullivan, M. (2000), "Maximizing shareholder value: a new ideology for corporate governance" in Economy and Society, Vol. 29, No. 1, pp. 13-35.
62. Leavitt, F. (2001), Evaluating Scientific Research, Prentice-Hall, Upper Saddle River, NJ.
63. Lee, Y.H., Jeong, C.S. and Moon, C. (2002), "Advanced planning and scheduling with outsourcing in manufacturing supply chain" in Computers & Industrial Engineering, Vol. 43, Nos 1/2, pp. 351-74.
64. Leiblein, M.J., Reuer, J.J. and Dalsace, F. (2002), "Do make or buy decisions matter? The influence of organizational governance on technological performance" in Strategic Management Journal, Vol. 23, No. 9, pp. 817-33.
65. Logan, M.S. (2000), "Using agency theory to design successful outsourcing relationships" in The International Journal of Logistics Management, Vol. 11, No. 2, pp. 21-32.
66. McIvor, R. (2000a), "A practical framework for understanding the outsourcing process" in Supply Chain Management: An International Journal, Vol. 5, No. 1, pp. 22-36.
67. McIvor, R. (2000b), "Strategic outsourcing: lessons from a systems integrator" in Business Strategy Review, Vol. 11, No. 3, pp. 41-50.
68. McIvor, R. (2003), "Outsourcing: insights from the telecommunications industry" in Supply Chain Management: An International Journal, Vol. 8, No. 4, pp. 380-94.
69. McIvor, R. (2008), "What is the right outsourcing strategy for your process" in European Management Journal, Vol. 26, No. 1, pp. 24-34.
70. Mahnke, V. (2001), "The process of vertical dis-integration: an evolutionary perspective on outsourcing" in Journal of Management and Governance, Vol. 5, Nos 3/4, pp. 353-79.
71. Mahoney, J. and Pandian, J.R. (1992), "The resource-based view within the conversation of strategic management" in Strategic Management Journal, Vol. 13, No. 5, pp. 363-80.
72. Mazzawi, E. (2002), "Transformational outsourcing" in Business Strategy Review, Vol. 13, No. 3, pp. 39-43.
73. Medcof, J.W. (2001), "Resource-based strategy and managerial power in networks of internationally dispersed technology units" in Strategic Management Journal, Vol. 22, No. 11, pp. 999-1012.
74. Momme, J. (2002), "Framework for outsourcing manufacturing: strategic and operational implications" in Computers in Industry, Vol. 49, No. 1, pp. 59-75.
75. Narasimhan, R. and Das, A. (1999), "An empirical investigation of the contribution of strategic sourcing to manufacturing flexibilities and performance" in Decision Sciences, Vol. 30, No. 3, pp. 683-718.
76. Nassimbeni, G. (1998), "Network structures and co-ordination mechanisms: a taxanomy" in International Journal of Operations & Production Management, Vol. 18, No. 6, pp. 538-54.
77. Nellore, R. and Söderquist, K. (2000), "Strategic outsourcing through specifications" in Omega, The International Journal of Management Science, Vol. 28, No. 5, pp. 525-40.
78. Nola, R. and Sankey, H. (2000), "A selective survey of theories of scientific method" Nola, R. and Sankey, H. (Eds.), After Popper, Kuhn and Feyerabend - Recent Issues in Theories of Scientific Method, Kluwer, Dordrecht.
79. Popper, K.R. (1966), Logik der Forschung, J.C.B. Mohr, Tübingen.
80. Popper, K. (1999), All Life is Problem Solving, Routledge, London.
81. Prahalad, C.K. and Hamel, G. (1990), "The core competence of the corporation" in Harvard Business Review, Vol. 168, No. 3, pp. 79-91.
82. Priem, R.L. and Butler, J.E. (2001), "Is the resource-based 'view' a useful perspective for strategic management research?" in Academy of Management Review, Vol. 26, No. 1, pp. 22-40.
83. Probert, D. (1997), Developing a Make or Buy Strategy for Manufacturing Business, Institution of Electrical Engineers, London.
84. Quélin, B. and Duhamel, F. (2003), "Bringing together strategic outsourcing and corporate strategy: outsourcing motives and risks" in European Management Journal, Vol. 21, No. 5, pp. 647-61.
85. Reed, F.M. and Walsh, K. (2000), "Technology acquisition and the changing face of manufacturing industry" in Industry and Higher Education, Vol. 14, No. 4, pp. 224-334.
86. Roberts, A. (1994), "Integrating strategy with performance measures" in Management Development Review, Vol. 7, No. 7, pp. 13-15.
87. Rothaermel, F.T., Hitt, M.A. and Jobe, L.A. (2006), "Balancing vertical integration and strategic outsourcing: effects on product portfolio, product success, and firm performance" in Strategic Management Journal, Vol. 27, No. 11, pp. 1033-56.
88. Scarbrough, H. (1998), "Path(ological) dependency? Core competencies from an organizational perspective" in British Journal of Management, Vol. 9, No. 3, pp. 219-32.
89. Selz, O. (1913), Über die Gesetze des geordneten Denkverlaufs, erster Teil, Spemann, Stuttgart.
90. Shelanski, H.A. and Klein, P.G. (1995), "Empirical research in transaction cost economics: a review and assessment" in Journal of Law, Economics, & Organization, Vol. 11, No. 2, pp. 335-61.
91. Simatupang, T.M. and Sridharan, R. (2004), "A benchmarking scheme for supply chain collaboration" in Benchmarking: An International Journal, Vol. 11, No. 1, pp. 9-30.
92. Skinner, W. (1969), "Manufacturing - missing link in corporate strategy" in Harvard Business Review, Vol. 47, No. 3, pp. 136-45.
93. Stamm, C.L. and Golhar, D.Y. (1993), "JIT purchasing: attribute classification and literature review" in Production Planning & Control, Vol. 4, No. 3, pp. 273-82.
94. Strauss, A.C. and Corbin, J. (1998), Basics of Qualitative Research Techniques and Procedures for Developing Grounded Theory, Sage, London.
95. Strong, D.M. and Miller, S.M. (1995), "Exceptions and exception computerized information handling in processes" in ACM Transactions on Information Systems, Vol. 13, No. 2, pp. 206-33.
96. Sturgeon, T.J. (2002), Modular Production Networks: A New American Model for Industrial Organization, Industrial Performance Center, Massachusetts Institute of Technology, Cambridge, MA.
97. Sturgeon, T.J. and Lee, J.-R. (2001), "Industry co-evolution and the rise of a shared supply-base for electronics manufacturing", paper presented at the Nelson and Winter Conference, Aalborg, June 12-15.
98. Tayles, M. and Drury, C. (2001), "Moving from make/buy to strategic sourcing: the outsource decision process" in Long Range Planning, Vol. 34, No. 5, pp. 605-22.
99. Thorelli, H.B. (1986), "Networks: between markets and hierarchies" in Strategic Management Journal, Vol. 7, No. 1, pp. 37-51.
100. Vangen, S. and Huxham, C. (2000), "Building trust in inter-organizational collaboration", paper presented at the Academy of Management Research, Toronto, August 4-9.
101. Wernerfelt, B. (1984), "A resource-based view of the firm" in Strategic Management Journal, Vol. 5, No. 2, pp. 171-80.
102. Williamson, O.E. (1975), Markets and Hierarchies, Analysis and Antitrust Implications: A Study in the Economics of Internal Organization, The Free Press, New York, NY.
103. Williamson, O.E. (1998), "Transaction cost economics: how it works; where it is headed" in De Economist, Vol. 146, No. 1, pp. 23-58.
104. Yin, R.K. (1994), Case Study Research: Design and Methods, Sage, London.
105. Araz, C., Ozfirat, P.M. and Ozkarahan, I. (2007), "An integrated multicriteria decision-making methodology for outsourcing management" in Computers & Operations Research, Vol. 34, No. 12, pp. 3738-56.
106. Baden-Fuller, C., Targett, D. and Hunt, B. (2000), "Outsourcing to outmanoeuvre: outsourcing re-defines competitive strategy and structure" in European Management Journal, Vol. 18, No. 3, pp. 285-95.
107. Dekkers, R. (2009), "Distributed manufacturing as co-evolutionary system" in International Journal of Production Research, Vol. 47, No. 8, pp. 2031-54.
108. Gilley, K.M., McGee, J.E. and Rasheed, A.A. (2004), "Perceived environmental dynamism and managerial risk aversion as antecedents of manufacturing outsourcing: the moderating effects of firm maturity" in Journal of Small Business Management, Vol. 42, No. 2, pp. 117-33.
109. Grant, R.M. (1996), "Toward a knowledge-based theory of the firm" in Strategic Management Journal, Vol. 17, Winter special issue, pp. 109-22.
110. Hamel, G. and Prahalad, C.K. (1994), Competing for the Future, Harvard Business School Press, Boston, MA.
111. McIvor, R. (2009), "How the transaction cost and resource-based theories of the firm inform outsourcing evaluation" in Journal of Operations Management, Vol. 27, No. 1, pp. 45-63.
112. Macher, J.T. and Richman, B.D. (2008), "Transaction cost economics: an assessment of empirical research in the social sciences", Business and Politics, Vol. 10, No. 1.
113. Penrose, E.T. (1963), The Theory of the Growth of the Firm, Basil Blackwell, Oxford.
114. Williamson, O.E. (1979), "Transaction-cost economics: the governance of contractual relations" in Journal of Law & Economics, Vol. 22, No. 2, pp. 233-61.