Outsourcing and its implications for market success: Negative curvilinearity, firm resources, and competition

Journal of the Academy of Marketing Science

Volumn 40, Issue 2, 2012, Pages 329-346

  Kotabe, Masaaki ^a   Mol, Michael J ^b   Murray, Janet Y ^c   Parente, Ronaldo ^d  

^a TEMPLE UNIVERSITY   (United States)

^b UNIVERSITY OF WARWICK   (United Kingdom)

^c UNIVERSITY OF MISSOURI ST LOUIS   (United States)

^d RUTGERS UNIVERSITY   (United States)

Author keywords

Competition; Market share; Marketing performance; Outsourcing; Resources

Indexed keywords

EID: 84857036520     PISSN: 00920703     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11747-011-0276-z     Document Type: Article

References (70)

1. Aaker, D. (1996). Building strong brands. New York: Free Press.
2. Adner, R., & Zemsky, P. (2006). A demand-based perspective on sustainable competitive advantage. Strategic Management Journal, 27, 215-239.
3. Afuah, A. (2001). Dynamic boundaries of the firm: are firms better off being vertically integrated in the face of a technological change? Academy of Management Journal, 44, 1211-1228.
4. American Marketing Association (2007). Definition of marketing. October, http://www. marketingpower. com/AboutAMA/Pages/DefinitionofMarketing. aspx.
5. Argyres, N., & Bigelow, L. (2010). Innovation, modularity, and vertical deintegration: evidence from the early U. S. auto industry. Organization Science, 21, 842-853.
6. Argyres, N. S., & Liebeskind, J. P. (1999). Contractual commitments, bargaining power, and governance inseparability: incorporating history into transaction cost theory. Academy of Management Review, 24, 49-63.
7. Bae, S. H., Yoo, C. S., & Sarkis, J. (2010). Outsourcing with quality competition: insights from a three-stage game-theoretic model. International Journal of Production Research, 48, 327-342.
8. Balakrishnan, S., & Wernerfelt, B. (1986). Technical change, competition, and vertical integration. Strategic Management Journal, 7, 347-359.
9. Barney, J. B. (1999). How a firm's capabilities affect boundary decisions. Sloan Management Review, 40, 137-145.
10. Bartels, R. (1974). The identity crisis in marketing. Journal of Marketing, 38, 73-76.
11. Bettis, R., Bradley, S., & Hamel, G. (1992). Outsourcing and industrial decline. The Academy of Management Executive, 6, 7-16.
12. Bruck, F. (1995). Make versus buy: the wrong decisions cost. The McKinsey Quarterly, 1, 28-47.
13. Brusoni, S., Prencipe, A., & Pavitt, K. (2001). Knowledge specialization, organization coupling, and the boundaries of the firm: why do firms know more than they make? Administrative Science Quarterly, 46, 597-621.
14. Buzzell, R. D., & Gale, R. T. (1987). The PIMS principles. New York: Macmillan.
15. Cachon, G. P., & Harker, P. T. (2002). Competition and outsourcing with scale economies. Management Science, 48, 1314-1333.
16. Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: Methods and applications. New York: Cambridge University Press.
17. Cavusgil, S. T., & Zou, S. (1994). Marketing strategy-performance relationship: an investigation of the empirical link in export market ventures. Journal of Marketing, 58, 1-21.
18. st century. ABA Banking Journal, 87, 44-48.
19. Duddy, E. A., & Revzan, D. A. (1953). Marketing: An institutional approach. New York: McGraw Hill.
20. Dunning, J. H. (1993). Multinational enterprises and the global economy. Wokingham: Addison-Wesley.
21. Edmund Daily (2010). http://blog. edmunds. com/strategies/2010. By Carrol Lachnit on August 4th, 2010.
22. Fortune (1991). Apple's Japanese ally. November 4, 151-52.
23. Gao, G. Y., Murray, J. Y., Kotabe, M., & Lu, J. (2010). A 'strategy tripod' perspective on export behaviors: evidence from firms based in an emerging economy. Journal of International Business Studies, 41, 377-396.
24. Glover, H. D., & Williams, A. (1995). Fighting back. Internal Auditor, 52, 71-73.
25. Grimpe, C., & Kaiser, U. (2010). Balancing internal and external knowledge acquisition: the gains and pains from R&D Outsourcing. Journal of Management Studies, 47, 1483-1509.
26. Grossman, G. M., & Helpman, E. (2002). Integration versus outsourcing in industry equilibrium. Quarterly Journal of Economics, 117, 85-120.
27. Harrigan, K. R. (1984). Formulating vertical integration strategies. Academy of Management Review, 9, 638-652.
28. Hendry, J. (1995). Culture, community and networks: the hidden cost of outsourcing. European Management Journal, 13, 218-229.
29. Hult, G. T. M., Ketchen, D. J., Jr., & Arrfelt, M. (2007). Strategic supply chain management: improving performance through a culture of competitiveness and knowledge development. Strategic Management Journal, 28, 1035-1052.
30. Jacobides, M. G., & Billinger, S. (2006). Designing the boundaries of the firm: from 'make, buy, or ally' to the dynamic benefits of vertical architecture. Organization Science, 17, 249-261.
31. Jacobides, M. G., & Winter, S. G. (2005). The co-evolution of capabilities and transaction costs: explaining the institutional structure of production. Strategic Management Journal, 26, 395-413.
32. Kotabe, M. (1998). Efficiency vs. effectiveness orientation of global sourcing strategy: a comparison of U. S. and Japanese multinational companies. The Academy of Management Executive, 12, 107-119.
33. Kotabe, M., & Mol, M. J. (2004). A new perspective on outsourcing and the performance of the firm. In M. Trick (Ed.), Global corporate evolution: Looking inward or looking outward (pp. 331-340). International Management Series: Volume 4 (pp. 331-340). Pittsburgh: Carnegie Mellon University Press.
34. Kotabe, M., & Mol, M. J. (2009). Outsourcing and financial performance: a negative curvilinear relationship. Journal of Purchasing and Supply Management, 15, 205-213.
35. Kotabe, M., Mol, M. J., & Ketkar, S. (2008a). An evolutionary stage theory of outsourcing and competence destruction: a triad comparison of the consumer electronics industry. Management International Review, 48, 65-93.
36. Kotabe, M., Mol, M. J., & Murray, J. Y. (2008b). Outsourcing, performance, and the role of e-commerce: a dynamic perspective. Industrial Marketing Management, 37, 37-45.
37. Kotabe, M., Parente, R., & Murray, J. Y. (2007). Antecedents and outcomes of modular production in the Brazilian automobile industry: a grounded theory approach. Journal of International Business Studies, 38, 84-106.
38. Kotler, P., & Levy, S. J. (1973). Buying is marketing too. Journal of Marketing, 37, 54-59.
39. Lacity, M. C., Khan, S., Yan, A., & Willcocks, L. (2010). A review of the IT outsourcing empirical literature and future research directions. Journal of Information Technology, 25, 395-433.
40. Leachman, C., Pegels, C. C., & Shin, S. K. (2005). Manufacturing performance: evaluation and determinants. International Journal of Operations & Production Management, 25, 851-874.
41. Lei, D., & Hitt, M. A. (1995). Strategic restructuring and outsourcing: The effect of mergers and acquisitions and LBOs on building firm skills and capabilities. Journal of Management, 21, 835-859.
42. Leiblein, M. J., Reuer, J. J., & Dalsace, F. (2002). Do make or buy decisions matter? The influence of organizational governance on technological performance. Strategic Management Journal, 23, 817-833.
43. Leonidou, L. C., Katsikeas, C. S., & Samiee, S. (2002). Marketing strategy determinants of export performance: a meta-analysis. Journal of Business Research, 55, 51-67.
44. Levy, D. L. (2005). Offshoring in the new global political economy. Journal of Management Studies, 42, 687-93.
45. Masten, S. E. (1993). Transaction costs, mistakes, and performance: assessing the importance of governance. Managerial and Decision Economics, 14, 119-129.
46. McEvily, B., & Marcus, A. (2005). Embedded ties and the acquisition of competitive capabilities. Strategic Management Journal, 26, 1033-1055.
47. Mol, M. J. (2005). Does being R&D intensive still discourage outsourcing? Evidence from Dutch manufacturing. Research Policy, 34, 571-582.
48. Mol, M. J. (2007). Outsourcing: Design, process, and performance. Cambridge: Cambridge University Press.
49. Mol, M. J., & Kotabe, M. (2011). Overcoming inertia: drivers of the outsourcing process. Long Range Planning, 44, 160-178.
50. Murray, J. Y., Kotabe, M., & Zhou, J. N. (2005). Strategic alliance-based sourcing and market performance: evidence from foreign firms operating in China. Journal of International Business Studies, 36, 187-208.
51. Murray, J. Y., Kotabe, M., & Westjohn, S. (2009). Global sourcing strategy and performance of knowledge-intensive business services: a two-stage strategic fit model. Journal of International Marketing, 17, 90-105.
52. Nikkei. com (2006). Sony's technological leadership In Jeopardy. October 7.
53. Poppo, L., & Zenger, T. (1998). Testing alternative theories of the firm: transaction cost, knowledge-based, and measurement explanations for make-or-buy decisions in information services. Strategic Management Journal, 19, 853-877.
54. Porter, M. E. (1980). Competitive strategy. New York: Free Press.
55. Porter, M. E. (1985). Competitive advantage. New York: Free Press.
56. Powell, W. W., Koput, K. W., & Smith-Doerr, L. (1996). Interorganizational collaboration and the locus of innovation: networks of learning in biotechnology. Administrative Science Quarterly, 41, 116-145.
57. Rao, R. K. S., & Bharadwaj, N. (2008). Marketing initiatives, expected cash flows, and shareholders' wealth. Journal of Marketing, 72, 16-26.
58. Reitzig, M., & Wagner, S. (2010). The hidden cost of outsourcing: evidence from patent data. Strategic Management Journal, 31, 1183-1201.
59. Rodan, S., & Galunic, C. (2004). More than network structure: how knowledge heterogeneity influences managerial performance and innovativeness. Strategic Management Journal, 25, 541-562.
60. Rothaermel, F. T., Hitt, M. A., & Jobe, L. A. (2006). Balancing vertical integration and strategic outsourcing: effects on product portfolio, product success, and firm performance. Strategic Management Journal, 27, 1033-1056.
61. Rust, R. T., Ambler, T., Carpenter, G. S., Kumar, V., & Srivastava, R. K. (2004). Measuring marketing productivity: current knowledge and future directions. Journal of Marketing, 68, 76-89.
62. Shy, O., & Stenbacka, R. (2003). Strategic outsourcing. Journal of Economic Behavior and Organization, 50, 203-224.
63. Srinivasan, S., & Hanssens, D. M. (2009). Marketing and firm value: metrics, methods, findings, and future directions. Journal of Marketing Research, 46, 293-312.
64. Stigler, G. J. (1951). The division of labor is limited by the extent of the market. Journal of Political Economy, 59, 185-193.
65. Suter, M. P., & Michael, N. (1999). Banking's top performance-Part 2: the community banks. ABA Banking Journal, 91, 44-49.
66. Szymanski, D. M., Bharadwaj, S. G., & Varadarajan, P. R. (1993). An analysis of the market-share profitability relationship. Journal of Marketing, 57, 1-18.
67. The Outsource Blog (2010). http://www. theoutsourceblog. com/2010. By Manmohan on August 5.
68. Weigelt, C. (2009). The impact of outsourcing new technologies on integrative capabilities and performance. Strategic Management Journal, 30, 595-616.
69. Williamson, O. E. (1985). The economic institutions of capitalism. New York: Free Press.
70. Zou, S., & Cavusgil, S. T. (2002). The GMS: a broad conceptualization of global marketing strategy and its effect on firm performance. Journal of Marketing, 66(October), 40-56.