Outsourcing Strategy Research Articles

Outsourcing Strategy With Patent Licensing in an Electronic Product Supply Chain

An electronic product like a smartphone might involve hundreds of thousands of patents. The risks caused by infringement make it necessary for enterprises to consider patent licensing when outsourcing production activities in the electronics industry. This paper studies the outsourcing strategy considering patent licensing in an electronic product supply chain composed of a patent-holding firm, an original equipment manufacturer (OEM) and a contract manufacturer (CM). In addition to outsourcing manufacturing to the CM, OEM also considers outsourcing the patent license obtaining as well. We construct two outsourcing modes, called Turnkey and Consignment. No matter under which outsourcing mode, the patent-holding firm will charge unit royalty and a fixed fee paid in a lump sum. The results show that the OEM tends to choose Consignment without considering fixed fees, while the CM prefers Turnkey. When considering fixed fees, the patent-holding firm could align their preferences by coordinating fixed fees borne by OEM and CM. What’s more, considering the environmental pollution caused by the production of electronic products, both strategies may lead to higher social welfare than the other strategy.

Outsourcing cyber power: Why proxy conflict in cyberspace may no longer pay

A sizable literature implies that states can achieve military and foreign policy objectives “on the cheap” by outsourcing covert operations to willing non-state proxy actors, be they mercenaries, patriotic zealots, pranksters, or simply enemies of enemies. By outsourcing, a host government can claim plausible deniability while all the while cashing in on strategic gains. Attribution is notoriously difficult in cyberspace, so outsourcing should especially prevalent. Puzzlingly, strategies of cyber outsourcing have not widely diffused, even in countries where hackers are both highly capable and ideologically sympathetic to host state objectives. This article leverages a formal analytical model to hypothesize about why it might no longer pay to outsource to cyber proxies. Default explanations, including principal-agent problems, are neither sufficient nor necessary to explain recently observed patterns. Instead, I argue, new attribution technologies, particularly the willingness of states to make allegations about informal state-proxy links on the basis of circumstantial and cumulative rather than legally admissible evidence, mean that outsourcing carries no real added benefit to offset its risks. Normative momentum regarding the international law on state responsibility should only reinforce this trend as international audiences come to more fully accept nontraditional forms of attributive evidence.

Порівняльна характеристика стратегій організаційного розвитку бізнес-систем в умовах глобального середовища

The research is aimed at comparing the strategies for organizational development of business systems in the global environment and determining the priorities of their application in the practice of business. When analyzing approaches to strategic management, the peculiarities of application of the strategies for organizational development of business systems are considered, and strategies are systematized into three following groups: non-interference, development, and decline. Considerable attention is paid to development strategies: internal growth; external growth – horizontal and vertical integration, concentric and conglomerate diversification, network structures, strategic alliances, outsourcing. As a result of the research, it is defined that the global environment is characterized by a significant degree of interstate and inter-firm competition. In order to make the most use of market opportunities, to minimize threats, to adapt to changes in a timely manner, taking into account business conditions in different countries, it is proposed to use innovative strategies of organizational development more actively. The strengths and weaknesses of each of the strategies considered are identified. The feasibility of using growth strategies is substantiated, namely, strategies of network structures and strategic alliances for powerful business systems, and outsourcing strategies for medium and small enterprises limited in resources. At the same time, it is proposed to combine various strategies for the organizational development of business systems to achieve various goals. Prospects for further research in this direction are the formation of methodological support for evaluating strategic alternatives in substantiating the choice of a strategy for the organizational development of business systems in global environment.

R&D 아웃소싱과 혁신성과 간의 관계: 자원기반관점을 기반으로

This study aims to analyze the relationship between innovation performance and internal and external resources of R&D outsourcing firms. In order to achieve this, logistic regression analysis was conducted using the STEPI “Korean innovation survey for 2016: Manufacturing sector” data, As a result, it was found that the ratio of researcher in employee, the number of patents per employee, and the cooperation partners had a positive effect on product innovation and the utilization of government support had negative effect. In addition, cooperative partners and utilization of government support had a positive effect on process innovation and organizational innovation, and the number of patents per employee and utilization of government support had a positive effect on marketing innovation. Through this study, it is possible to expect improvement of innovation performance and firm’s competitive by using internal and external resources efficiently in carrying out R&D outsourcing strategy, and provide reference data on policy directional for government support in R&D outsourcing.

The Impact of Outsourcing Strategy on a Firm’s Innovation and Internationalization

The Impact of Outsourcing Strategy on a Firm’s Innovation and Internationalization

Holistic Archetypes of IT Outsourcing Strategy: A Contingency Fit and Configurational Approach

Holistic Archetypes of IT Outsourcing Strategy: A Contingency Fit and Configurational Approach

Strategic outsourcing in SMEs

PurposeSo far, there are very few empirical research studies available on the outsourcing pattern among small- and medium-sized enterprises (SMEs). The purpose of this paper is to examine strategic outsourcing among Icelandic SME service firms, from 2009 to 2018.Design/methodology/approachThe data presented in this paper cover responses from 802 small service firms, which were collected through telephone and online questionnaires. In order to have sufficient data on strategic outsourcing and to ensure a decent analysis, three surveys were combined.FindingsThe main finding of the present paper is that SMEs that have a developed strategy on outsourcing seem to perform better than those who do not have. The former are more likely to have achieved cost reduction, especially in housing and finance, and they use outsourcing to increase core businesses. They select vendor firms more on the bases of cost and services, rather than personal contacts. Also, these firms have improved service quality, by focusing on their core competences.Originality/valueTo the authors‘ knowledge, the present study is one of the few empirical studies that have examined outsourcing in SMEs from a strategic perspective. The findings are valuable for managerial practice and could be a base for outsourcing strategies in SMEs.

Does resource-based view explain outsourcing intention: Revenue management perspective

Revenue management (RM) in the hotel industry is fundamental as a revenue enhancer, and it is an integral part of the overall strategy of many hotel properties. However, considering the complex, technical, and costly structure of RM, not all properties can utilize it properly; consequently, they may need to outsource this function. By focusing on resource-based view (RBV), this study examined the rationale behind RM outsourcing strategy. The findings of this study provide useful information in expanding our understanding of how hotel managers make an outsourcing decision in a highly complex RM environment. The empirical findings of the study also provide a confirmation of RBV as a useful tool in RM outsourcing research.

Identify the factors affecting the outsourcing of information systems with a multi-criteria decision-making approach and present its implementation strategies

The purpose of this article is to identify and prioritize the factors affecting the of outsourcing of information systems and provide strategies for its implementation in order to increase the quality, accuracy and productivity of outsourcing in Nezaja Physical Education Organization. In this research, first factors Examining the outsourcing of information systems for sports managers of the Nezaja Physical Education Organization will be examined to identify and rank the role of outsourcing in the promotion of the Physical Education Organization. In the following, the factors in the field of outsourcing, including quality, management, strategy, economy, technology, accuracy in outsourcing decisions will be considered as a criterion for measuring the effectiveness of decisions for outsourcing information systems. Offer. For this purpose, the research approach is done using multi-criteria decision making methods with network analysis process and fuzzy wikor. Due to ambiguities in the opinions of various experts, this decision-making model produces fuzzy numerical values ​​to compare criteria, sub-criteria and options so that managers can better plan outsourcing strategies for each of the desired information systems. Make a decision. In the areas of sports management, managers' information systems, information technology, etc., the main and important factors were identified, categorized and analyzed, which are: importance, supply characteristics, risk, quality, financial , Delivery and technology, which was considered the strategic importance factor as the most effective factor in outsourcing and quality factor as the most effective factor in outsourcing sports management information systems of Nezaja Physical Education Organization.

Evolutionary positioning of outsourcing in the local public administration

Purpose: This work intends to establish a new methodology to quantitatively measure the initial position and evolution of outsourcing in a public administration. Design/methodology: Product of the generalization of a methodological tool based on the fuzzy set theory of maximum and minimum level, a method is designed to evaluate the evolution of the positioning of outsourcing in a public administration. Contributions/results: The proposed model that is presented opens up the possibility to study the evolution of public administration in terms of the actions that have been taken to reach an ideal outsourcing position, which would allow managers to create points of control at various stages to ensure the success of the actions taken. Limitations: The limitations to the proposed method are directly related to the cases established in the fuzzy set theory. As an example, having to choose a specific value for the ideal values in an outsourcing strategy implies a regression to the concept of certainty. The work shows no examples of how to overcome these problems, although it does offer some ideas on how to minimize them. Practical implications: This work offers a tool to help determine the degree to which the objectives have been reached that are established within a public administration with regard to actions associated with outsourcing. Social implications: The ability to establish a distance from an ideal value means that citizens can numerically analyze whether the actions taken by the management team have improved or worsened the position of the public administration in terms of its outsourcing actions. Originality/added value: The work offers two original proposals. First, it offers an expansion of an index customarily used to calculate the distance from an ideal position. Second, it offers a context in which to demonstrate the usefulness of the index.

Placing the Production of Investment Returns: An Economic Geography of Asset Management in Public Pension Plans

Public pension funds are engulfed in a severe funding crisis. At stake is the financial stability of state and local governments as well as the welfare of over thirty million public-sector employees. Although cutting back on external asset management expenses could help save billions in taxpayers’ money and improve public pension funding, recent research suggests that public pensions remain predominantly outsourced and keep paying high fees to private-sector asset managers. This article examines why public pension funds outsource their asset management functions. It relies on mixed methods, juxtaposing positivist and reflexive approaches. The study relies on an econometric analysis of a unique panel data set of twenty-one state pension plans. The model tests specific relationships between levels of outsourcing and the organizational, economic, and political context in which these plans are embedded. The results indicate that outsourcing is linked to plans’ (1) investment return targets, (2) allocation to nondomestic and private market investments, (3) local financial sector vibrancy, and (4) proximity to a leading financial center. These quantitative results are enriched with insights from thirty-seven semistructured interviews with investment professionals employed by a top-performing state pension plan. The interviews help shed further light on how distance, politics, and governance affect pension plans’ outsourcing strategies. This article contributes new insights on context to economic geographic literature on pension decision-making as well as new perspectives to financial geography literature on the role of place and distance in institutional asset management.

Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms

Successful outsourcing strategy is a key enabler of sustainable competitiveness of established firms engaged in technology-intensive business. This study proposes a research framework of a successful outsourcing process composed of resources, dynamic capabilities and created values, from a review of relevant literature and in-depth case study of four leading medical device firms. The research results specify four outsourcing types according to the characteristics of outsourced resources, and their alignment with resources owned by the outsourcer. Each type of outsourcing is positively affected by the outsourcer’s dynamic capabilities, namely sensing, integrating capability, absorptive capability and technology transfer capability. In addition, the significance of the outsourcee’s size according to each outsourcing type is also found. As a result of successful outsourcing experience, the outsourcer can reap the benefits of enhanced dynamic capabilities, i.e., market-oriented innovation, strategic flexibility, agility and increased efficiency, thereby creating a virtuous cycle of sustainable competitiveness in a volatile environment.

Performance Impact of Outsourced Component Knowledge in the Face of an Innovation Shock

The purpose of this study is to investigate under what conditions a firm can successfully manage exchange hazards arising from outsourcing strategy in the face of an innovation shock. The specific ...

Building maritime empire: Shipbuilding and networks of coercion under the Verenigde Oost-Indische Compagnie (VOC) in South and Southeast Asia

This article maps the overseas infrastructure of the Dutch East India Company (VOC) for ship maintenance and shipbuilding. Reversing the perspective on the VOC, emphasizing the centrality of the ‘overseas’ or Asian activities, it studies how the VOC set up an infrastructure for shipbuilding, ship maintenance, and the necessary supporting industries in Asia. Historians have primarily examined the Company as a ‘merchant’, but the organization of the workplaces and underlying infrastructure for building and repairing ships reveals how important it activities and role as ‘potentate’ and ‘producer’ were. Mobilizing the resources and labour needed for the maintenance of its maritime infrastructure, especially in shipbuilding and repairs, the Company alternated monopolistic and outsourcing strategies, and regularly resorted to coercion.

The Impact of Cost- driven Strategic Outsourcing on the Organizational Performance of Manufacturing Companies in Nigeria

The pivotal roles of the manufacturing sector in economic growth and sustainable development in both developed and developing countries have been documented in the literature. However, the highly competitive environment along with customers' demands for tailored products and services, has forced manufacturing companies, especially in Nigeria to experience slow growth. This study, therefore, seeks to determine the impact of cost drive outsourcing strategy on the organizational performance of manufacturing companies in Nigeria. The questionnaires were administered among the one hundred and twenty (120) management staff members of the sixty selected manufacturing companies in Nigeria through a purposive sampling method, and this was done personally by the researcher. Linear regression was used to analyzed and interpret the data used in this research. The study reveals that cost-driven is a major strategy that helps an organization in achieving its stated objectives in the global competitive environment. The findings further show that cost-driven has a significant impact on the organizational performance of the manufacturing sector in Nigeria. Based on the findings, the study therefore, recommends that the management of manufacturing companies should adopt strategic and well thought out outsourcing partnerships in order to continuously reduce operating costs for growth.

Optimal advertising outsourcing strategy with different effort levels and uncertain demand

This paper studies the issue of advertising outsourcing and production planning for a manufacturer facing asymmetric advertising cost and uncertain market demand. To improve product sales, a manufacturer would hire an advertising agency to provide professional service on product advertising before the production takes place. A contract taking into account both advertising effort level and payment is introduced to incentivize the advertising agency to report the exact cost to the manufacturer. Furthermore, a model with the goal of maximising the manufacturer's net profit is proposed, in which both product demand and payment to the advertising agency are affected by the advertising effort level. Analytical solutions of the optimal strategies including the optimal advertising effort level and the optimal payment to the advertising agency are derived. Optimal retail price and the optimal production quantity are also obtained for the manufacturer in making managerial decisions.

The impact of R&D workforce diversity on firm’s performance in internal and external R&D

PurposeHow should managers organize their R&D workforce in order to maximize the benefit of internal R&D and R&D outsourcing strategy? The purpose of this paper is to examine the effects of R&D workforce diversity on firms’ performance when the firms use internal and external knowledge acquired from R&D outsourcing. Diversity of R&D employees as R&D workforce can enable firms to utilize the knowledge of internal R&D and internalize the external knowledge.Design/methodology/approachPanel data analysis with fixed effects is used. The authors conduct hierarchical multiple regression analyses to test the moderating effect of R&D workforce diversity with 10,401 data from Korean manufacturing firms.FindingsThis study finds out that age and education diversity of R&D workforce have positive moderating effects on the relationship between the R&D outsourcing and firm performance. In contrast, internal R&D is negatively associated with firm performance when the age diversity of R&D workforce increases. The results point to the significant role of R&D workforce diversity in R&D unit since firms often use both internal R&D and external R&D.Practical implicationsFor practical implications to be more effective, CEOs and managers of firms should employ differentiated approaches to manage the diversity of R&D workforce based on whether they primarily focus on their internal R&D or utilize external R&D.Originality/valueThis research extends recent efforts to better understand the effect of organizational diversity on the firms’ performance when firms use internal R&D and R&D outsourcing strategy.

Assessment of Factors Influencing Outsourcing Strategy in Teaching Hospitals in South-Western Nigeria

Assessment of Factors Influencing Outsourcing Strategy in Teaching Hospitals in South-Western Nigeria

Business Process Outsourcing Strategy on Competitive Advantage and Organizational Performance

Business Process Outsourcing Strategy on Competitive Advantage and Organizational Performance

ISIS Cohort Transnational Travels and EU Security Gaps: Reconstructing the 2015 Paris Attack Preplanning and Outsource Strategy

ABSTRACT We explore the underappreciated role of organizational tactics in terrorist violence in an understudied single case: ISIS’s execution of the November 13, 2015 Paris attacks. It is one of the first systemic reconstructions of the journeys made by two ISIS strike cohorts in the coordinated attacks, as teams traveled from the Levant to Europe. In contrast to other high-profile attacks, terrorism scholars have not undertaken a detailed reconstruction of this event, even while open source information is now available. By examining the transnational travels of foreign terrorist fighters, we identify ISIS’s distinctive terrorist outsourcing strategy in which operatives used their experiences to adapt to changing security conditions, while EU governments revealed limited responses. Both elements in this tightly-knit dynamic—terrorist outsourcing savvy using FTFs and EU security policy failures—were necessary to achieve this high-profile attack. The essay contributes to descriptive empirical and theoretical knowledge of terrorist tactical innovation and adaptive operational learning, as these capacities are enhanced by on-the-ground organized networks to increase organizational (versus lone-wolf) campaign success. By using a single case interdisciplinary and exploratory framework, terrorism studies can delve deeper into superficially understood phenomena to isolate concepts with future cross-case value, such as cohorts and tactical adaptation.