Abstract
Portugal has become the second most expensive footwear brand manufacturer in the global market in just one decade. How does an offshore-outsourcing provider become a direct competitor with former clients? This study applies a fuzzy-set qualitative comparative analysis to 12 Portuguese footwear manufacturers and identifies the underlying factors of the managerial transition from an offshore-outsourcing provider to a direct brand manufacturer. The study finds that the transformation of external knowledge from the client into internal knowledge must occur first. But the decisive factor is the management's recognition that brand creation is a long-term investment and is less risky than remaining dependent on outsourcing. These findings contribute to the understanding of the transition to becoming a direct brand manufacturer.
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