Purpose– The governance of information technology outsourcing (ITO) has been identified as an essential determinant for ITO success. Prior studies have shed light on effective governance structures in different organizational contexts. This study aims to advance this prior knowledge by exploring how interpersonal networks, as an important aspect of such context, reflect and influence ITO governance.Design/methodology/approach– A single case study was conducted from a vendor’s perspective in an ITO dyad. Social network analysis was leveraged to reveal the interpersonal networks, with whole-network analysis on 24 team members in an ITO vendor company. In addition, open-ended interviews with six selected team members were utilized to identify the perceived governance structure.Findings– The findings of this study suggest certain features of interpersonal networks, i.e. network density and cross-network comparison, can reflect governance structure in multiple aspects. Meanwhile, the authors also argue that interpersonal networks can influence the form of governance structure.Research limitations/implications– As a single case study, the context of the research site cannot be ignored in the inference of findings. To increase the confidence for further generalization, future empirical studies are needed especially in contrasting sites, such as ITO relations based on network governance.Originality/value– This study associates intra-organizational characteristics of the vendor to the inter-organizational governance structure of the ITO relationship. It also provides an innovative methodology for both researchers and practitioners to assess ITO governance structure.
Purpose This paper aims to contribute to the scholarly debate on the origins and nature of industrial servitization. By resorting to contract manufacturing (CM) as an empirical case, it is posited that any product-service solution that a manufacturing firm is capable of delivering on a competitive basis mirrors its goals in value creation and capture, positioning within its value networks and the pool of assets and competences it holds. Design/methodology/approach To support this argument, a comparative case study of two CM firms that represent polar cases in the industry was conducted. The primary data were collected through participatory methodology, observations and semi-structured interviews of company representatives. The business experiences of an industry practitioner provided a distinct contribution to the content analysis and modelling. Findings It was concluded that servitization becomes endogenous as contract manufacturers aim for higher profitability through the insource of customer activities and hence extend their offering downstream in the supply chain. The findings suggest that the way out of the servitization trap is a shift toward original design and manufacturing business, where high value-adding modules are insourced and integrated into replicable solutions for various types of customers and market segments. Research limitations/implications The generalization of the conclusion is constrained by the limited focus on two cases only. More industry and company data are therefore required to further validate this argument. Particularly valuable will be the data on the intermediate business models between the two polar cases. Originality/value Building on contested business practices, this paper outlines the logic of competitive strategy in CM on the basis of specific characteristics and implications of the various business concepts. In this case, the principal drivers of servitization are the acquisition of supporting capabilities and insourcing of customer activities. The case study method integrates theory with academic observation and managerial experiences.
Purpose This paper aims to illustrate the value of the outsourcing life cycle, as described in several industry models, including ISO 37500. Design/methodology/approach The authors present a comparison of outsourcing life cycles to provide an overview of current practices in the global outsourcing industry. Findings Several outsourcing life cycles have been defined by industry associations such as the International Association of Outsourcing Professionals (IAOP) and the National Outsourcing Association (NOA). Academic research has created several outsourcing life cycles, notably the model from the London School of Economics (Cullen and Willcocks, 2005). Finally, commercial models have been defined, for example the Vendor and Sourcing Management model from IDC (2014). Research limitations/implications Researchers will find the overview of different life cycles useful in assessing maturity of outsourcing organizations. Practical implications Practitioners will find the detailed description of ISO 37500 and the comparative life cycles to be illustrative of different approaches to managing outsourcing transactions. Both buyers and providers will be able to compare their own life cycle to industry standards. Originality/value Little or no research has been conducted on how outsourcing life cycles contribute to effective outsourcing. This paper provides a foundation for such research.
Purpose – The purpose of this paper is to find how mature the Polish commercial production companies are in their information technology (IT) sourcing practices, what they do, the practices that are successful, the challenges experienced and the outcomes.The paper presents and critically evaluates the results of a study of IT outsourcing management processes in selected industrial enterprises operating in Poland. Dynamic business contexts, globalisation and advances in IT make the development of IT sourcing models challenging in both theory and practice. This paper examines the principles and practice of sourcing IT and business processes in Poland, a country much under-represented in the literature. Little research has been conducted on the strategic rationale behind IT sourcing decisions, the resulting challenges and the potential or actual consequences of such decisions. This paper addresses these gaps in the understanding of IT sourcing processes by way of examining the types of sourcing models and solutions among manufacturing companies operating in Poland, and by identifying the most problematic and critical factors in effective IT sourcing collaborations. The outcomes are assessed against findings from the broader empirical outsourcing literature, and lessons are drawn for Polish client firms and those in similar economies. Design/methodology/approach – A survey methodology of a limited number of organisations in Poland was used. The study was designed to address the process of managing IT sourcing relations in production companies operating in Poland. The main objective of the study was to formulate working hypotheses to be used in further research on the sourcing models used in the IT sphere. Additionally, the study was designed to provide information on: the potential respondent reactions to the research problem, the understanding of the notions and terms used in the survey questionnaire and the evaluation of the research instrument itself. Findings – Organisations (and their employees) are generally well aware of their IT needs, and that they select quite well providers that suit their particular requirements. In their selection processes, organisations carefully consider not only the providers’ experience and the range of services on offer but also their flexibility in response to the client’s demands, the location and the trust formed in the course of previous cooperation. Communication between the parties typically takes the form of telephone conversations and e-mails. The majority of respondents reported more than one type of problems faced in the course of outsourcing. Problems concentrated in the areas of communication (52 per cent) and organisation (48 per cent), followed by difficulties in enforcing the terms of the contract. Research limitations/implications – It is a selective sample, focuses only on production companies and does not look at the offshore outsourcing market that has grown up in Poland, but rather what domestic polish organisations do in their sourcing practices. Practical implications – The organisations still struggle with the organisation and management of relations with their external service providers while getting reasonable results. They have much to learn from the published literature on managing the outsourcing life cycle. Social implications – There is a need for better inter-organisational cooperation. Originality/value – Poland is very underrepresented in the outsourcing literature – there are no examples of surveys like this in the English literature.
Purpose This paper aims to examine the level of information and communication technology (ICT) outsourcing and its determinants in the Malaysian locally owned manufacturing firms. Drawing on the transaction cost theory and the resource-based theory, four determinants – asset specificity, uncertainty, business skills and technical skills – were hypothesized to influence ICT outsourcing. Design/methodology/approach Data were collected using a questionnaire survey from 104 manufacturing firms listed on the Directory of Federation of Malaysian Manufacturers. Data were then analyzed using R package partial least squares path modeling. Findings The study reveals that slightly over two-thirds (68 per cent) of the surveyed manufacturers either fully or partially outsourced their ICT services. Asset specificity and uncertainty are found to be positively related to the level of ICT outsourcing, which contradict the prediction of the transaction cost theory. On the other hand, business skills and technical skills are not significantly related to the level of ICT outsourcing, which also conflict the resource-based arguments. Research limitations/implications The small sample size would not be able to make meaningful conclusion for the population; the small R2 value indicates that other important determinants of ICT outsourcing were not tested in this study, and the transaction cost theory and the resource-based theory do not adequately predict the level of ICT outsourcing in the Malaysian locally owned manufacturers. Originality/value The study serves as one of the first studies that tested the determinants of ICT outsourcing using the transaction cost theory and the resource-based theory in locally owned manufacturing firms of a developing country.
Purpose Technological outsourcing requires possessing the technological capability level by enterprises taking the outsourced activity and further mandates build-up capabilities. Small and medium enterprises (SMEs) in developing nations such as Ethiopia are usually equipped with low level of technological capability and could benefit from government-supported or government-initiated outsourcing networks. The current study aims to preliminarily assess performance of outsourcing initiative taken by the Hibret Manufacturing and Machine Building Industry, a subsidiary of a national corporation, in developing technological capability of SMEs in Ethiopia. Design/methodology/approach The study used a qualitative research approach through interviews with the parent company officials and owners of SMEs and site visit to these SMEs. Findings are organized in a way to draw lessons to be learned from technological outsourcing examined. Findings Technological learning, acquisition of new technologies, market access and process innovation are few capabilities achieved by the involved SMEs. To facilitate and harness these opportunities and further assist in policy ratification, a conceptual framework has been presented and elaborated. Research limitations/implications Further investigation into outsourcing procedure and biases are expected to shed further light onto the outsourcing initiative by the parent company. This study drew results from investigation of the SMEs involved. Additional investigation of other SMEs is expected to reveal additional insights. Originality/value There is a dearth of literature focusing on exploration of technological outsourcing in low-income developing countries, such as Ethiopia, to build SMEs’ technological capabilities. This research presents insightful contribution to strategic outsourcing to build local technological capability in developing economies.
Purpose - The purpose of this study is to provide deeper and broader insights into human resource outsourcing (HRO) trends and practices specific to the Malaysian context.Design/methodology/approach - Data were collected from HR managers through a questionnaire-based survey, using convenient sampling with random selection.Findings - HRO practices were found to have evolved into second-generation outsourcing, with considerable potential to grow further in the future. Firm size and sector had little or no effect on the degree of HRO. Both cost benefits and resourced-based benefits were key drivers of HRO decisions, with a majority of the firms reporting having achieved these benefits equally and positively. Most of the functions outsourced were traditional-transactional HR functions. Slightly more than half of the HRO decisions were made by top management without the involvement of HR managers. More than half of the firms surveyed intended to do more outsourcing in the near future (i.e. within the next two to five years), including firms that had previously experienced HRO failure.Research limitations/implications - While convenience sampling limits the generalisability of the findings, it is suitable for a study like this, especially as there is no pre-established list of firms outsourcing HR available in Malaysia. The study did not cover trends in either HR shared services or insourcing - either of which could potentially affect future HRO trends in the future. The findings also serve as a warning to future HRO researchers about the importance of contextual knowledge to strengthen the validity of their findings.Practical implications - The findings provide both practitioners and service providers with insights into HRO practices and trends in Malaysia, which are comprehensively discussed in the paper.Originality/value - This paper presents a broad, yet up-to-date, overview of HRO practices and trends specific to the Malaysian context. It covers aspects and details of HRO not explored or explicitly discussed before.
Purpose Adaptation is often seen as a key competitive advantage for outsourcing vendors. Outsourcing research has often assumed that vendor capabilities are static. However, as a result of uncertainties and/or changes in the client environment, vendors need to be able to adapt their outsourcing capabilities. The aim of our research is to compare two contrasting outsourcing approaches and illustrate how an adaptive approach may deliver better results for clients in the long term. Design/methodology/approach The paper uses a combination of literature and case study research. A retrospective case study approach was adopted, using interviews, observations and analysis of reports. Two case studies utilizing contrasting clients approaches were investigated and compared. In one of the case studies, the client reorganized activities first and then outsourced them, while in the other, the client did the reverse – outsourced first and then reorganized. Findings The findings indicate that reorganizing first and outsourcing afterwards contributes to a more controlled implementation, which results in a more defined and stable set of vendor outsourcing capabilities that contributed to short-term success. In contrast, outsourcing first and reorganizing later demonstrates a less controlled redesign of the client’s organizational structure, which requires a malleable set of outsourcing capabilities to accommodate future change. The latter strategic manoeuver results in an extended adaptation period, as some capabilities need to be developed over time. However, it may improve success over time as subsequent changes in the client environment can be catered for in a better way. Research limitations/implications Only two explorative case studies were performed, limiting confidence in the degree of generalization of the results. We plea for more research on the effect of context dependency as various contingencies may impact the adaptation of outsourcing capabilities; for example, the volatility of the client’s market or the stability of the technology concerned. Practical implications When a client applies a proactive manoeuver, reorganizing first and then applying outsourcing, the number of adaptive capabilities required of the outsourcing vendor is reduced, limiting the risk for the client in the short term. In the longer term, however, subsequent change requirements may be less well-accommodated. Originality/value Strategic manoeuvers within an outsourcing context have received limited attention in research. As far as we know, this is the first empirical research that investigates the benefits of vendors having adaptive capability.
Purpose The purpose of the study is to develop an in-depth understanding of how supplier–buyer relationships, particularly in operational coordination, are affected when a company introduces an environmental sustainability target (CO 2 emissions reduction) into its supply chain operations. The investigation focuses on the joint activities of the logistics function of the company (buyer) and the third-party logistics providers (3PLs) (suppliers). Design/methodology/approach This single-case study takes the perspective of a sustainability-conscious Danish company that outsources logistics services to 3PLs but maintains internal logistics as a boundary function. The value offering point/order penetration point (VOP/OPP) methodology is used. Findings The results showed that the introduction of sustainability led to the emergence of multiple decoupling points in both the demand and the supply chains. The logistics function therefore began to play the role of “integrator” across both the functions in the company and the organizations in the supply chain. The findings indicate the need to develop clear cross-functional and inter-organizational coordination mechanisms. Research limitations/implications This is a single-case study in a Danish context. Practical implications The study provides rich insights into managing the implementation of sustainability in supply chain operations, and it exemplifies how the VOP/OPP tool can be applied by 3PLs to develop sustainable offerings. Originality/value The current research on sustainable supply chain management takes into account the entire supply chain. In contrast, this study focuses on the logistics function. The VOP/OPP concept is used to capture the processes used in actual practice, and both the buyer and the supplier are considered potential co-producers of value.
Purpose - The increasing complexity and dynamism of new technology implemented or to implement have imposed substantial uncertainties and subjectivities in the risk assessment process. This paper aims to present a risk assessment methodology for e-procurement implementation based on modified analytic network process (ANP) coupled with fuzzy inference systems.Design/methodology/approach - ANP is modified in such a way that the experts can provide necessary data precise numerical value, a range of numerical values, a linguistic term or a fuzzy number. The proposed methodology incorporates knowledge and judgements obtained from experts to carry out identification of risk factors and to assess the risk magnitude of the identified risk factors based on factor index, risk likelihood and risk severity.Findings - Risk magnitude of third party systems are found to be minor with a belief of 100 per cent, and for in-house systems, the risk is found to be between minor with a belief of 30 per cent and major of 70 per cent. The results indicate that by using the proposed methodology, the technological risk assessment of new technology can be done effectively and efficiently.Research limitations/implications - Using the results of this study, the practitioners can better know the pros and cons of implementing both in-house and third party e-procurement systems.Originality/value - The modified ANP is used mainly to structure and prioritize the diverse risk factors. Finally, an illustrative example on technological risk assessment of both in-house and third party e-procurement systems is used to demonstrate the applicability of the proposed methodology in real life situations.
Purpose - The purpose of this paper is to describe how seven sourcing models operate along a continuum depending on the complexity of the marketplace and the strategic needs of buyers and suppliers. Studies of business procurement and sourcing practices reveal that collaborative and holistic approaches will increase efficiencies and value in strategic outsourcing relationships.Design/methodology/approach - The design is based on research and fieldwork from the University of Tennessee and vetted with the Sourcing Industry Group, the Center for Outsourcing Research and Education and the International Association for Contracts and Commercial Management. This work provided the basis and framework for the 2015 book, Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing Business Models in Modern Procurement.Findings - Most organizations operate under conventional transaction-based models that are constrained by a formal, legally oriented, risk-averse and liability-based culture. There is growing awareness that transactional-based approaches do not always give each party the intended, or best, results. University of Tennessee research shows how organizations apply alternative output-and outcome-based approaches for complex contracts. That experience demonstrates that alternative Sourcing Business Models are viable approaches to the conventional transactional methods[1]. As senior leaders see positive results from carefully crafted collaborative agreements, momentum grows for both output-and outcome-based approaches.Practical implications - Education on sourcing business models.Originality/value - Collaborative outsourcing.
Purpose The purpose of this paper is to analyse the risks associated with outsourcing production to emerging countries with lower labour costs, namely China, and study actions and plans used to reduce the influence of factors/drivers that induce these risks. Design/methodology/approach This research uses a multiple case-study methodology, involving seven Canadian manufacturing firms that have chosen an outsourcing strategy in China. It is based on a particular approach of classifying factors/drivers that may generate risks related to this strategy and on interviews with two managers per firm to reduce personal bias. Findings In each of the seven cases studied, outsourcing was chosen to take advantage of lower labour costs in China, but in reality, costs were higher than expected due to unforeseen factors inherent to the risks involved. This study reveals that risks generated by factors/drivers such as lack of experience, reduced control over foreign operations and cultural differences are of major concern for managers outsourcing part of their production to China. However, according to some executives that were interviewed, certain actions can be taken by firms to overcome the negative influence of these factors/drivers. Furthermore, some risks may have multiple causes or be induced by other risks. Research limitations/implications The sample of this study was composed of firms from different industrial sectors, and the authors were therefore unable to analyse sector-specific risks. As the industrial sector has an impact on the technical complexity of the products and their components, it would be appropriate to reconduct our research using samples drawn from similar sectors. Practical implications These findings can help guide the decisions of managers wishing to outsource some of their activities to China and other emerging countries. They will contribute to the success of outsourcing strategies to these countries, as they reveal the risks associated with these strategies and the ways to deal with factors/drivers that can induce them. For example, building long-term relationships with Chinese partners based on collaboration, trust and mutual benefit as well as conducting a rigorous prospecting phase and taking time to select the right subcontractor can have a major impact on reducing risks. Originality/value The main contribution of this work is the analysis of risks associated with outsourcing to China, based on a categorisation of factors/drivers that can generate these risks, and the study of how firms manage these factors/drivers and control their negative effects. The nature of the practices and actions used to manage important risks depends on the characteristics of the companies, their size, resources and the products they outsource.
Purpose – The purpose of this study is to identify the challenges, the benefits, the risks and the motives of petroleum companies in the Persian Gulf toward outsourcing strategy. While the petroleum companies are faced with massive costs of operation that stem from the aging infrastructure, human capital deficit, inefficient fragmented business processes and lack of access to new technologies, outsourcing strategy toward cost savings and the overt and covert resistance of management and employees are significant barriers for creation of continuous process. Design/methodology/approach – Based on the review of existing literature, the industry ' s archives and in-depth personal interviews with senior executives of the national oil and gas companies in five Gulf countries and seven global outsourcing companies and 87 survey responses, this study develops a methodological framework which substantiates or refutes the hypotheses based on the objectives: industry challenges are the driving forces behind outsourcing strategy; the potential risks of cost savings of outsourcing outweigh the consequential loss in control over the product or service, companies ' safety and security of the region. Findings – The findings indicate that the oil and gas exporters have mixed but broad positive view of outsourcing strategy. While outsourcing could provide savings across the entire supply chain, it also generates a distracting resistance due to the fear of unknown in a complex range of culture, infrastructures and sequential processes that requires resiliency for continuity of operations. Originality/value – This study is the first of its kind in the Persian Gulf oil and gas industry investigating the implementation of outsourcing strategy. The result of this investigation reveals the compromise between the potential benefits in cost reduction and the security of petroleum supply. This study contributes to all who are in the industry or who are involved with it to share a clear assessment of the future.
Purpose – The purpose of this paper is to explore patterns and developments in the open innovation literature. Design/methodology/approach – A bibliometric analysis was performed by classifying 411 articles in a range of key attributes. Findings – Europe (61 per cent) as a region of data source was higher than all other regions together. As a unit of analysis, firm level (65 per cent) was more than all other levels together. Qualitative studies were mostly case-based, and quantitative studies were largely based on survey and panel data. Regression was a widely used analytical technique. Originality/value – The authors identified avenues to address overlooked research topics, increase cross-continental collaboration, diversity of research methods beyond case study and survey, etc. Based on findings, the authors outlined some future research directions.
Purpose - This paper aims to focus on "Recruitment Process Outsourcing" (RPO) as a key element of improvement in corporate brand of organisation through using the talent and capabilities of employees. This research explores the linkages and interconnection between the concepts of RPO and its contribution towards the employer branding process. The review of the literature on RPO and employer branding identifies an emergence of conceptual framework based around outsourcing effectiveness and its impact on employer branding.Design/methodology/approach - Exploratory research was carried out using case study analysis to give clear and deep understanding of the RPO and its impact on employer branding. This was conducted by using the semi-structured interviews with the HR and marketing managers using the qualitative method. The findings propose a conceptual framework which is representative for the organisations engaged in RPO.Findings - The key findings include talented employees' role in improving the brand image of any organisation; the development of customers' perceptions through their attitude and behaviours; the reduction in the HR costs through RPO Services, the responsibility of the organisation taken by RPO which provides the chance for HR professionals and top management to focus on core activities; and the organisational care in selection of the RPO service provider as per their criteria.Research limitations/implications - This research has been limited to assessing the impact of RPO on the employer branding of manufacturing organisations purely due to access issues. The research clearly establishes a good link between the operationalisation of RPO and its direct influences on an organisation's employer branding through its outsourced employees. The research clearly highlights the importance of and the vital role played by the outsourced employees and how they need to be nurtured through a strong corporate culture and make them great brand ambassadors.Practical implications - At the practical level, this study has several managerial implications, as the findings provide a good understanding of the concept of RPO and how it impacts the employer brands of the organisation. The research gives confidence to the HR managers and directors on the importance of outsourced staff members and the need to address the issues concerning the employee branding of an outsourced member of staff. The outcome of the research gives a conceptual model which represents the impact of an outsourced employee on the employer branding process of the organisation. This conceptual model highlights the many different factors that need to be addressed by a HR manager to keep consistency in employee branding of the organisation.Social implications - The social implications of this research relate to the wellbeing and motivated staff members of an organisation, even though they do not work directly under the brand of the company they serve in. As mentioned in the research findings, the complications of the RPO process usually has drastic and serious impacts on employee attitudes and feelings when it comes to issues like change management, job satisfaction and the sense of belonging to the organisation. By addressing the different factors explored in the conceptual model of this research, an outsourced employee can feel equally motivated and belonging to the organisation they serve in, just as any other permanent member of staff who acts like an ideal brand ambassador for the employer branding of the organisation.Originality/value - This research is original and adds value to the dynamics of RPO processes by exploring the impact of the process on employer branding of the organisation through its brand ambassadors. This research paves way for further research to be carried out within service organisations where employees play a vital role in being the brand ambassadors of their employer brands.
Purpose – The purpose of this paper is to propose an approach that integrates three complementary perspectives, multi-agent systems, fuzzy logic and case-based reasoning. Unsatisfied customers, information overload and high uncertainty are the main challenges that are faced by today’s supply chains. In addition, a few existing agent-based approaches are tied to real-world supply chain functions like supplier selection. These approaches are static and do not adequately take the qualitative and quantitative factors into consideration. Therefore, an agent-based framework is needed to address these issues. Design/methodology/approach – The proposed approach integrates three complementary perspectives, multi-agent systems, fuzzy logic and case-based reasoning, as a common framework. These perspectives were rarely used together as a common framework in previous studies. Furthermore, an exploratory case study in an office furniture company is undertaken to illustrate the value of the framework. Findings – The proposed agent-based framework evaluates supply offers based on customers’ preferences, recommends alternative products in the case of stock-out and provides a collaborative environment among agents who represent different supply chain entities. The proposed fuzzy case-based reasoning (F-CBR) approach reduces the information overload by organizing them into the relevant cases that causes less overall search between cases. In addition, its fuzzy aspect addresses the high uncertainty of supply chains, especially when there are different customers’ orders with different preferences. Research limitations/implications – The present study does not include the functions of inventory management and negotiation between agents. Furthermore, only the case description and case retrieval phases of the case-based reasoning approach are investigated, and the remaining phases like case retaining, case reusing and case revising are not included in the scope of this paper. Originality/value – This framework balances the interests of different supply chain structural elements where each of them is represented by a specific agent for better collaboration, decision-making and problem-solving in a multi-agent environment. In addition, the supplier selection and order gathering mechanisms are developed based on customers’ orders.
Purpose– This paper aims to explore how sales managers make resourcing decisions with particular focus on their perceptions of outsourcing.Design/methodology/approach– This paper is based on in-depth interviews with 29 senior sales managers from a variety of industry sectors based in the UK. All had more than five years’ experience of making resourcing decisions.Findings– The findings are that resourcing decisions are prompted by cost pressure, the need to access skills or to improve flexibility. Outsourcing preferences are strongly moderated by perceived reputational risk. Availability of suitable suppliers and the ability to manage outsourcing are also practical moderators.Research limitations/implications– The sample was purposeful in identifying and accessing senior respondents in substantial companies with extensive experience, but it was not random.Practical implications– Respondents reported a lack of information available when making resourcing decisions; the model proposed provides a framework by which sales managers can identify the factors which should be taken into account and the information they need to make objective evaluations of resourcing options.Originality/value– It has been acknowledged in prior literature that there is relatively little outsourcing of sales activities. This is the first exploratory study of the perceptions of sales managers about resourcing options and the first conceptualisation of how sales resourcing decisions are made.
Purpose – The purpose of this paper is to provide an insight to the outsourcing decision-making through investigating if the old evaluation/selection criteria and methods still fit with current business priorities or not and, therefore, to identify the appropriate criteria and methods to develop a new selection framework. Since the economic recession of 2008, logistics outsourcing decisions have become more prominent to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages. Design/methodology/approach – This is a focused literature review prepared after analyzing 56 articles related to the logistics service provider (LSP) evaluation and selection methods and criteria during 2008-2013. The academic articles are analyzed based on research focus/area, evaluation and selection methodology/methods and evaluation and selection criteria. Then reviewed result is compared with previous literature studies for the periods (1991-2008) to identify any possible shifts. Findings – The review reveals that: several problems in current LSPs literature have been identified; the reviewed papers can be categorized into seven groups, the usage and importance of evaluation and selection criteria fluctuate during different periods; 12 crucial criteria have been identified, increasing the importance of specific selection methods and the integrated models and fuzzy logic in logistics literature. Then, a comprehensive LSPs’ evaluation and selection framework has been developed. Originality/value – To the best of our knowledge, this is the first focused logistics outsourcing study that reviews the 2008-2013 period in detail, comparing results with previous literature studies, identifies current LSPs literature problems/gaps, new trends and shifts in the way that LSPs are evaluated and selected, identifies crucial selection criteria and proposes a new holistic LSPs evaluation and selection framework. In addition, it identifies important issues for future research.
Purpose– The purpose of this paper is to advance the understanding of factors that affect offshoring performance results. To do so, this paper focuses on the access to location-specific advantages, rather than solely on the properties of the offshoring company, its strategy or environment. Assuming that different levels of synergy may exist between particular offshoring strategic decisions (choosing offshore outsourcing or captive offshoring and the type of function) and different offshoring advantages, this work advocates that the actual fact of realization of certain offshoring advantages (getting or not getting access to them) is a more reliable predictor of offshoring success.Design/methodology/approach– A set of hypotheses derived from the extant literature is tested on the data from a quantitative survey of 1,143 Scandinavian firms.Findings– The paper demonstrates that different governance modes and types of offshored function indeed provide different levels of access to different types of location-specific offshoring advantages. This difference may help to explain the ambiguity of offshoring initiatives performance results.Research limitations/implications– Limitations of the work include using only the offshoring strategy elements and only their limited variety as factors potentially influencing access to offshoring advantages. Also, the findings are limited to Scandinavian companies.Originality/value– The paper introduces a new concept of access, which can help to more reliably predict performance outcomes of offshoring initiatives. Recommendations are also provided to practitioners dealing with offshoring initiatives.
Purpose – The purpose of this paper is to present a research model that explore strategic outsourcing practices for sustainable competitive advantages. In this paper, a decision support system (DSS) for sustainable performance measurement of carry and forward agents (CFAs) is proposed. Design/methodology/approach – The importance of seven criteria as a means of selecting the best CFA for warehouses under the aspect of sustainable environment is analyzed. The criteria are compared and ranked using analytic hierarchy process (AHP) with the combined assistance of literature review and expert opinions. This study makes use of unstructured interviews of Regional Distribution Manager and senior strategic leaders of the firms. Findings – This paper discusses how strategic outsourcing can help firm to achieve desired business outcomes. The selection of best CFA gives a direction to the company to move toward excellence and provides the key areas to work upon to achieve competitive advantage. The main contribution of this paper includes modeling the performance evaluation problem within the context of a sustainable supply chain based on triple bottom line (TBL) concept. Research limitations/implications – The identified selection criteria are bound with Indian transportation and logistics industry. Further, it is suggested to conduct a real-life application of this study to other companies from different countries, to obtain criteria based on globally acceptable norms. The results may yield the network-specific evaluation criteria and their evaluations. Practical implications – The developed excel-based tool could be used to record the inspection data, compare the CFAs and determine the best CFAs on the basis of selected criteria. With the help of this tool, CFAs know their position and ranking among all the CFAs and the focus areas they need to work upon to perform well. The training module could be used to keep the CFA staff on the right track which is very essential in a typical manufacturing industry warehouse. The improved performance of CFAs will in turn help to improve the manufacturing process, thus maximizing the gains along with environmental benefits. Originality/value – This paper provides a priority of sustainable issues for evaluating the performance of the best CFA. The paper presents a strategic outsourcing model, which suggest both theoretical and managerial implications showing how to implement successful outsourcing practices in the global market by analyzing the performance of outsourcing partners, i.e. CFAs.
