Outsourcing Performance Research Articles

Matching Task Complexity With Supplier Management to Enhance Outsourcing Performance

As organizations search for low-cost and complementary resources and capabilities from external partners, the development of strategic outsourcing becomes an increasingly complex task. Without having well-developed outsourcing processes and task complexity management capabilities in place, opportunities for improvement of outsourcing practices are largely unrealized. This study aims to investigate the influence of task complexity on outsourcing practices and explore the appropriate supplier management approaches for managing outsourcing task complexity. This study suggests a research model that addresses the moderating roles of supplier governance and supplier development in the relationship between task complexity and outsourcing performance. We collected data from Chinese manufacturing firms to test the proposed hypotheses. The results of this study reveal that: (1) task complexity negatively relates to outsourcing performance; (2) both contractual and relational governance play an important role in weakening the negative effect of task complexity on outsourcing performance; (3) supplier development also weakens the negative effect of task complexity on outsourcing performance. The findings of this study provide valuable insights into the ways that firms operating in China manage task complexity effectively and achieve desired outsourcing performance.

Determinants of outsourcing performance in container terminal operations: a moderated mediation model

Determinants of outsourcing performance in container terminal operations: a moderated mediation model

Determinants of outsourcing performance in container terminal operations: a moderated mediation model

Determinants of outsourcing performance in container terminal operations: a moderated mediation model

Analysis of the multi-mediating effect of the utilization sector on the relationship between the determinants and performance of global outsourcing of import/export manufacturers

글로벌 아웃소싱을 통한 전략은 비용절감과 동시에 기업경쟁력 제고를 위한 전략적 차원에서 방안으로 인식되고 있다. 따라서 기업이 글로벌 아웃소싱을 해야 할 때 어떤 요인이 활용수준과 그 수준이 기업 성과에 어떠한 영향을 미치는가를 규명하고자 하였다. 이를 위해 수출입 제조업체를 대상으로 설문조사를 실시하였으며, 실증 분석에 사용된 업체는 151개였으며, 글로벌 아웃소싱 결정요인과 성과와의 관계에서 물류, 제조, 판매와 통관부문의 병렬다중매개 효과 검증을 PROCESS for SPSS Macro를 사용하였다. 글로벌 아웃소싱 결정요인과 성과와의 관계에서 물류, 제조, 판매와 통관부문의 병렬다중매개 효과 검증한 결과, 직접효과를 분석한 결과에 의하면, 글로벌 아웃소싱 결정요인은 제조부문에, 제조부문은 성과에 정의 유의한 영향을 미치는 것으로 나타났다. 글로벌 아웃소싱 결정요인은 판매부문에, 판매부문은 성과에 정의 유의한 영향을 미치는 것으로 나타났다. 글로벌 아웃소싱 결정요인은 통관부문에, 통관부문은 성과에 정의 유의한 영향을 미치는 것으로 나타났다. 매개변인의 간접효과를 살펴본 결과 글로벌 아웃소싱 결정요인은 제조, 통관부문을 통해서 성과에 간접적으로 영향을 미치는 것으로 나타났다. 이를 통해 글로벌 아웃소싱결정요인과 성과와의 관계에서 제조와 통관부문은 더욱 활성화 시킬 전략과 물류부문과 판매부문에 대한 활용수준을 높일 수 있는 방안을 고려할 필요성이 제기된다.

The Role of Vendor Legitimacy in IT Outsourcing Performance: Theory and Evidence

Information technology outsourcing (ITO) relationships today are facing increasingly turbulent environments. This research examines ITO performance by focusing on client firms’ perceived legitimacy of vendors, termed “vendor legitimacy,” consisting of pragmatic, cognitive, and moral dimensions. Based on our surveys with executives and managers at 200 ITO client firms, the study’s findings present the imperative to actively manage vendor legitimacy for achieving and sustaining ITO performance. Specifically, at the strategic level, clients’ perception of vendors as mutually aligned, long-term-oriented, tightly integrated partners is critical. At the operational level, clients should collaborate with vendors to design and establish interorganizational routines that undergird vendor legitimacy. At the managerial level, clients’ relational governance plays a pivotal role in attaining procedural justice, ethical standards, and fairness in the interorganizational collaboration. In sum, our study suggests that creating a dedicated corporate function or unit for continually overseeing and assessing a portfolio of vendors and swiftly identifying and responding to potential issues and crises related to vendor legitimacy would be a worthwhile investment.

A model for key success factors for outsourcing in project-based companies: integrating soft and dynamic approaches

PurposeThe purpose of this study is to achieve the dynamic model of outsourcing success factors in project-based companies.Design/methodology/approachThis study is descriptive-survey in terms of method and practical in terms of purpose. To achieve the dynamic model of outsourcing success, 1,000 outsourcing articles published in high-status journals from 2017 to 2019 were first text-mining. Then, using the clustering technique, the factors affecting the success of outsourcing were obtained. To achieve the key variables, the variables obtained by interpretive structural modeling (ISM) were then leveled. Then, the strategic options development and analysis (SODA) technique has been used to achieve a consensus and coordination on factors relationships. Finally, the dynamic model of outsourcing success in GHODRAT CONTROL PARS Company has been modeled and implemented.FindingsIn total, five clusters and nine factors were extracted (strategy, management, performance, market, R&D, supplier, product, organizational data and outsourcing findings). In central and domain analysis, two factors, “Strategy” and “R and D,” were recognized as factors that have the most interaction and centrality. The result of the dynamic model indicate that the organization will significantly reduce the construction time of the power plant by improving the “R and D” factor.Originality/valueIn this study, various techniques have been combined. Therefore, one of the aspects of innovation in the present study is the combination of methods that have not been used earlier. The second aspect of this study’s innovation is using SODA technique to design the dynamic model of outsourcing success factors. Given that the scope of this study is the component affecting the success of outsourcing, so extensive research has been conducted in the field of articles worked in the field of outsourcing to get a comprehensive view of the components affecting the success of outsourcing, which has not been reviewed in other articles. In this study, in addition to identifying the effective factors, their identified and also how these variables affect the successful performance of outsourcing in the form of a dynamic model, and then analyzed.

Strategic Outsourcing and Corporate Performance in Nigerian Banking Industry

This study examined strategic outsourcing and corporate performance of commercial banks in Nigeria. The decision to outsource is driven by the perception of management on how organization can achieve corporate effectiveness and efficiency with outsourcing strategy. This study specifically focused on two objectives; to investigate the relationship between strategic outsourcing and corporate performance and to ascertain the correlation between recruitment outsourcing and corporate performance. The study used a total number of twenty two (22) commercial banks listed in the Nigerian Stock Exchange (NSE) as at 31st January 2021 in its study. Primary data were collected from the population of the study with the aid of structured questionnaire and data were analyzed through descriptive statistics and the two hypotheses formulated were tested by Pearson Product Moment Correlation (PPMC) with the use of Statistical Package for Social Science (SPSS). The results of the study revealed a significant positive relationship between strategic outsourcing and corporate performance and a significant positive relationship between recruitment outsourcing and corporate performance. The study concluded that strategic outsourcing and recruitment outsourcing have positive relationship with corporate performance. The study, therefore, recommends that corporate organizations that want to achieve significant performance in their operations should outsource some of their activities that are outside its core competence.

Determinants and performance of outsourcing in the european mutual fund market

Most studies on mutual fund outsourcing have focused on the U.S. market. The objective of our study is to investigate the determinants of the decision to outsource and the impact of outsourcing on fund performance in the European market. The European market differs from the U.S. one in terms of market structure. In the U.S., banks play a minor role while the situation in Europe is the opposite: Banks dominate the market, and independent companies play minor roles. This difference in market structure can impact both the decision to outsource and the relationship between outsourcing and fund performance. In the U.S., banks and insurance companies that do not specialize in portfolio management tend to outsource their portfolio management services to external management companies. In Europe, banking and insurance groups often have management companies integrated into their groups, allowing them to keep their portfolio management in-house. In terms of fund performance, in contrast to recent studies based on the U.S market, our results show that outsourced funds perform at least as well as in-housed funds. They are even more performing than in-house funds in the short term.

Diagnostic analysis of US fashion brand’s Bangladeshi outsourcing

ABSTRACT The purpose of this paper is to examine Bangladesh’s performance as an outsourcing destination from the perspectives of buyers and suppliers involved in a representative US apparel company which has outsourced from Bangladesh. This study employed a sequential mixed method research design which consisted of quantitative evaluation and qualitative interviews. The sample was comprised of three buyers and three suppliers in the Phillip’s Van-Heusen (PVH). From the results of quantitative evaluation, it was found that Bangladesh has a greater advantage in the cost and quality clusters than Vietnam. The interviews revealed that the US buyers have some concerns in geographic location, trade restrictions, country’s political situation, warranty policies, and currency exchange situations. To strengthen Bangladeshi capability, Bangladeshi government’s investment to improve facilities, nomination of supplier’s backward linkage, improvement of manufacturing capacity, running improvement programs, negotiation to reduce tariff, and building mutual trust between buyers and suppliers were suggested. These diagnosis results provide the US buyers and the Bangladeshi suppliers with not only valuable information on the current status of Bangladesh’s performance but guidance to successful strategies for improvement of outsourcing performance.

Conditions for the functioning of outsourcing in enterprises

The objective of the study is to present the underlying conditions of the functioning of outsourcing at various levels of company operations. In addition, it shows a detailed analysis of the purposes of outsourcing, the scope of outsourced services and outsourcing selection criteria. What is more, it includes an assessment of the level of company satisfaction with outsourcing performance and the risks involved. The research materials comprise data regard-ing 140 manufacturers and service providers located in Eastern Poland which have outsourced some of their activities. The survey performed allowed the researchers to evaluate the scope of use of outsourcing services in company operations. The descriptive, comparative and graphic methods were all applied to analyse the re-sults of the study. The statistical analysis and the calculation of the correlation coefficient were employed to assess the level of dependence of company size on the scope of use of out-sourcing services. The conducted analyses show that the main objective of outsourcing use appears to be the focus on core competencies and the reduction of operating costs (75.7% and 60.7%, respectively). The most frequently indicated areas outsourced by the companies are the organization of supply, distribution, transport services and renovation-repair services. More than a half of the analysed enterprises pointed at the above listed areas. The factors of major importance when selecting outsourcing services providers are experience, market recognition, price, quality, and the application of the principles of sustainable development. The last element was crucial, above all, in the case of companies employing over 250 people. This is because in their case cooperation with companies holding relevant certificates and permits in the field of sustainable development translates directly into the development of a good company image and an increase in company value.

PENGARUH KOMPETENSI DAN PRODUKTIVITAS TERHADAP KINERJA OUTSOURCING PADA DEPARTEMENT ASSSETAND OFFICE MANAGEMENT PT. SEMEN BATURAJA (PERSERO) Tbk MELALUI MODERASI IKIM ORGANISASI

The purpose of this study was to determine the results of the analysis of Competency and Productivity Analysis of the Outsourcing Performance of the Asset and Office Management Department of PT. Semen Baturaja (Persero) Tbk. Through Organizational Climate Moderation, both partially and simultaneously in providing services to the management of PT. Semen Baturaja (Persero) Tbk. This study uses a quantitative verification method with a confirmative negative verification. The results of the analysis of the Competence of Organizational Iklmin prove positive and significant with a significance of 0,000 <0.05 and t arithmetic 6.422> t table 1.994, so that it can be attenuated against comparisons to organizations, Products towards organizational climate are proven by the results of data processing using SPSS version 23 significant and significant with t-test 7.115> t table 1, 994 and significance 0.000 <0.05. Based on the results of hypothesis testing using SPSS version 23, which contains positive and significant positive and significant joint-positive competencies and assessments of organizations with an F count of 30, 368> F table of 2,500 and a significance of 0,000 <0.05. 0,000 <0.05 and t count 9.036> t table 2.500 and a regression term of 0.739, so that this study succeeded in supporting empirical research in the field of research to improve performance. Then the conclusion of this study: a) outsourcing competencies that enjoy working in a team have a positive and significant effect in improving the performance of outsourcing where relationships are close and familiar. b) the level of outsourcing productivity supported by high morale, can significantly build outsourced fellow work that is familiar and mutually supportive in increasing production. c) Together competence and productivity influence in building a conducive organizational climate. The most influential research variable on organizational climate is productivity, then competency variable. d) passionate outsourcing competency when working in a solid team dam, will have a positive and significant impact on the performance of outsourcing helping each other in completing tasks so that the task load can be completed properly. e) productivity outsourcing in the development of asset and office management of PT. Semen Baturaja (Persero) Tbk, which has high morale, positively and significantly influences the improvement of outsourcing performance which always helps each other in completing tasks properly. f) the organizational climate built through outsourcing relationships is very close and familiar, significantly influencing the performance of outsourcing in the Department of Asset and Office Management of PT. Semen Baturaja (Persero) Tbk which always helps in completing tasks effectively. g) high outsourcing components, increased outsourcing productivity and a conducive organizational climate Department of Asset and Office Management PT. Semen Baturaja (Persero) Tbk, jointly influences the improvement of outsourcing performance which helps each other in completing tasks with optimal results.

An integrated framework for prioritizing the outsourcing performance outcomes

Purpose Outsourcing is a crucial tool for an organization to focus on its core business operations. The purpose of this study is to find critical success factors (CSFs) of outsourcing and to prioritize the performance outcomes of outsourcing because of the adoption of its CSFs. Design/methodology/approach This research proposes the hybrid framework of fuzzy Delphi, fuzzy analytic hierarchy process (F-AHP) and fuzzy additive ratio assessment (F-ARAS) to fulfill the research objectives. Fuzzy Delphi is used to finalize the CSFs of outsourcing and F-AHP provides the relative weights to it. F-ARAS is used to prioritize the outsourcing performance indicators with respect to CSFs. The empirical case investigation of three Indian large-scale public sector process industries is conducted to demonstrate the applicability of the proposed framework. Findings The result shows that increased dominance in core activity, ability to increase or decrease capacity, improved financial performance, optimized resource utilization and increased market share are the top five performance outcomes because of the adoption of outsourcing CSFs. Research limitations/implications Factors such as cultural, political, environmental and size of the organization may have a significant implication on the research results. Originality/value This is a novel approach towards the prioritization of performance outcomes of outsourcing. Moreover, the present research is a helpful tool to manage outsourcing and choosing which performance outcome of outsourcing ought to be used to measure implementation. This will help to recognize potential opportunities and preparing strategic planning for both short-term and long-term goals.

Determinants of logistics outsourcing performance among small and medium enterprises

The purpose of this study is to establish determinants of logistics outsourcing performance and their relationship with logistics performance among manufacturing small and medium enterprises (SMEs). The increasing use and challenge of logistics outsourcing require that SMEs establish relationship factors that determine high outsourcing performance to enhance overall logistics performance. Data was collected from 406 SMEs using a structured questionnaire. Factor analysis was applied and four constructs were extracted; three were found to be determinants. Partial least squares structural equation modelling was performed to determine the associations among the constructs. Communication-trust, innovation and cooperation between the manufacturing SMEs and logistics service providers were identified as key determinants of logistics outsourcing performance. Strong associations were validated between communication-trust, innovation and cooperation. Only communication-trust was positively associated with logistics performance. The results guide SME managers to promote communication-trust in logistics outsourcing relationships.

Determinants of logistics outsourcing performance among small and medium enterprises

The purpose of this study is to establish determinants of logistics outsourcing performance and their relationship with logistics performance among manufacturing small and medium enterprises (SMEs). The increasing use and challenge of logistics outsourcing require that SMEs establish relationship factors that determine high outsourcing performance to enhance overall logistics performance. Data was collected from 406 SMEs using a structured questionnaire. Factor analysis was applied and four constructs were extracted; three were found to be determinants. Partial least squares structural equation modelling was performed to determine the associations among the constructs. Communication-trust, innovation and cooperation between the manufacturing SMEs and logistics service providers were identified as key determinants of logistics outsourcing performance. Strong associations were validated between communication-trust, innovation and cooperation. Only communication-trust was positively associated with logistics performance. The results guide SME managers to promote communication-trust in logistics outsourcing relationships.

Assessing Outsourcing Oversight Practices and Performance.

The Tufts Center for the Study of Drug Development conducted a study updating benchmarks on outsourcing model adoption and assessing oversight practices and experience. An online survey examining organizational use of clinical development outsourcing was distributed between February and April 2018. Responses from a total of 88 individuals were included in the final analysis. More than half of individuals responding reported using 3 or more models simultaneously, mixing and matching approaches to meet individual project needs. Outsourcing practices among small, medium, and large sponsor companies remain inconsistent and deliver mixed levels of satisfaction and performance. Full-service models are the most commonly used. Biopharmaceutical companies report that the primary purpose of their oversight mechanisms is to minimize risks and regulatory missteps. Oversight mechanisms are generally supported by middle management personnel focusing on more reactive and tactical issues. Executive-level involvement in outsourcing oversight is minimal and highly variable. Several opportunities to improve oversight practices were identified in the study, including increasing executive-level involvement and leveraging technologies to monitor performance, enhance communication, and expand collaboration capabilities.

Cost analysis in the manufacturing industry by a learning model of outsourcing

Most empirical studies provide evidence that the relationship between the degree of outsourcing and firm performance is an inverted U-shape. Those studies implemented regression analysis to provide evidence of the inverted U-shaped relationship statistically. Cost reduction is used to represent firm performance in this study. Therefore, the purpose of this study is to examine how the relationship between the degree of outsourcing and the total cost of a firm becomes a U-shape instead of an inverted U-shape in the manufacturing industry. Cost analysis is implemented by simulations using a learning model of outsourcing to provide a more structural explanation than a statistical method. As a result, I suggest that the internal coordination cost and external coordination cost affect the relationship between the total cost of a firm and the outsourcing rate.

Congruent patterns of outsourcing capabilities: A bilateral perspective

Despite the extensive proliferation of Information Technology Outsourcing (ITO), firms often obtain unsatisfactory outsourcing outcomes due to the lack of appropriate outsourcing capabilities of a client or their vendor. ITO clients strive to enhance outsourcing performance by establishing their own outsourcing capabilities as well as contracting with capable vendors to meet their strategic needs. Thus, for the success of an ITO project, it is imperative to find an effective combination of complementary outsourcing capabilities on both sides. However, knowledge of how to identify and develop a set of appropriate outsourcing capabilities of both client and vendor has yet to be developed. This study aims to fill this knowledge gap by elaborating on the configurational mechanisms of outsourcing capabilities from a bilateral perspective, which explicate how multiple types of client and vendor outsourcing capabilities combine into configurations simultaneously to produce high ITO performance. First, based on the ITO literature, we develop a conceptual framework that identifies three key types of outsourcing capabilities. Then, with the matched dataset collected from a client and their vendor, we conduct a fuzzy-set qualitative comparative analysis (fsQCA), which is a set-theoretic configurational method to investigate the systemic and holistic interdependencies among key outsourcing capabilities that produce high outsourcing performance. On the basis of the conceptual framework and empirical findings, we present four viable propositions to build configurations of client and vendor ITO capabilities that can achieve ITO success with theoretical and practical implications.

The Effect of Relationship, Control Mediated by Offline Communication on Outsourcing Performance: Focused on the Expatriates Supplying Agencies in the Middle East Plant Construction Site

[연구목적] 본 연구는 중동지역 플랜트 건설현장에 제3국 인력을 공급하는 아웃소싱 과정에서 면대면 소통을 매개로 고객과의 적합성과 고객에 대한 통제성이 아웃소싱의 성과에 미치는 영향을 고찰한 실증연구이다.<BR>[연구방법] 중동지역 건설현장에 인도, 필리핀, 네팔인력을 공급하는 업체의 직원 358명을 대상으로 설문을 수행하였으며, 구조방정식 모형을 이용하여 실증연구를 수행하였다.<BR>[연구결과] 가설 검증 결과 첫째, 관계성을 강화할수록 아웃소싱 성과는 향상되었다. 둘째, 관계성이 높을수록 오프라인 소통은 향상되었다. 셋째, 통제성이 높을수록 아웃소싱 성과는 향상되지 않았다. 넷째, 통제성이 높을수록 오프라인 소통은 감소되지 않았다. 다섯째, 오프라인 소통이 활발할수록 아웃소싱 성과는 감소되었다.<BR>[연구의 시사점] 이러한 결과는 건설업체가 인력공급업체에 대한 전문성과 경험을 신뢰하고, 인력공급업체는 자신들을 인정해주는 고객으로부터 채용권한을 위임받아 아웃소싱을 수행하고 있는 관계 때문에 발생하는 현상으로 이해할 수 있다. 이는 각자 독립된 사업영역에서 서로의 필요성을 보완해가면서 경험과 전문성이 상호 조화를 이루고 있는 것으로 해석할 수 있다. 특히, 효율적인 소통을 위해 온라인 소통의 활성화가 필요함을 시사하고 있으며, 통제성은 필요한 경우에 한해 제한적으로 활용하는 것을 권고한다는 실무적 시사점을 제공한다.

Exploring the effect of internal and external integration on the performance of professional service outsourcing

PurposeThis paper aims to investigate how the professional service outsourcing (PSO) firm’s external knowledge integration with global clients, internal integration across various functional units and the synergistic effects between them in improving PSO performance.Design/methodology/approachDrawing on the theory of organizational learning, a conceptual framework is proposed with hypothesized relationships. The relationships in this conceptual model were tested using a structural equation model (SEM) to analyze a survey dataset including 192 Indian-based professional service providers.FindingsA service provider’s performance is positively associated with its external integration with global clients and internal integration across various functional units. Synergistic effect is generated from balanced high-level external and internal integration in improving PSO performance.Research limitations/implicationsThis study contributes to the much-needed efforts in studying PSO, a new and fast-growing cross-border professional service activity, and provides helpful managerial implications to practicing global clients and offshore PSO service providers on how to successfully manage and govern the outsourcing process to achieve expected benefits.Originality/valueThis study focuses on offshore service provider’s viewpoint to extend traditional supply-chain integration regarding cooperative and mutually beneficial mechanisms to the context of PSO.

Outsourcing, information symmetry and governance

PurposeThe purpose of this paper is to examine the effects of retailers’ organizational controls and controls of their boundary personnel on manufacturers’ outsourcing performance. It further assesses the moderating impact of information symmetry in this context.Design/methodology/approachData were collected from 230 Indian apparel manufacturers engaged in outsourcing activities with two international retailers. Organizational control is scrutinized as formal and informal controls, and outsourcing performance is studied in terms of efficiency and effectiveness. The partial least squares approach is used to test the proposed research model.FindingsFirst, the retailers’ and the boundary person’s formal controls have a direct, positive effect on outsourcing efficiency. Second, although no significant effect of the boundary person’s formal controls on outsourcing effectiveness is identified, a significant effect of retailers’ formal controls on effectiveness is seen. Third, the boundary person’s informal controls are associated with a decrease in efficiency, whereas they have a positive effect on effectiveness. Fourth, although the retailers’ informal controls enhance outsourcing effectiveness, they negatively affect efficiency. Fifth, information symmetry is statistically significant in enhancing outsourcing efficiency and effectiveness.Practical implicationsThe results have important implications for retailers and retailers’ boundary persons who are keen to improve their relations with manufacturers. This paper offers practical insights into the ways that manufacturers, boundary personnel and retailers can exercise control mechanisms in order to achieve effective and efficient outsourcing outcomes.Originality/valueThe effect of organizational control and information symmetry on outsourcing performance in typical outsourcing practices in manufacturer‒retailer relationships is shown.