Sourcing of Services International Aspects and Complex Categories
:
Lydia Bals
:
Sourcing of Services International Aspects and Complex Categories
:
Gabler Verlag
:
9783834981462
:
1
:
CHF 48.40
:
:
Betriebswirtschaft
:
English
:
119
:
Wasserzeichen/DRM
:
PC/MAC/eReader/Tablet
:
PDF
Lydia Bals identifies different types of offshoring, concluding that the buy option of offshore outsourcing versus hybrid or make options is directly related to purchasing. Her in-depth analysis specifically focuses on the sourcing of marketing services. In this context, the investigations of purchasing/marketing integration provide a conceptual model of barriers to purchasing involvement in sourcing of services. Moreover, she seeks to shed light on issues of providing incentives for advertising agencies from an agency theory perspective.
Dr. Lydia Bals promovierte bei Prof. Dr. Christopher Jahns am SVI-Stiftungslehrstuhl für Einkauf, Logistik und Supply Chain Management der European Business School Schloß Reichartshausen. Sie ist heute als Post-Doc Visiting Scholar an der Columbia Business School, Columbia University (New York, U.S.A.), tätig.
2 Offshoring: Dimensions and Diffusion of a New Business Concept
(S. 7-8)
Abstract
In order to leverage global cost differentials, companies are increasingly turning to offshoring. Nevertheless, discussions in research and practice on offshoring are characterized by the lack of a common definition as well as a theoretically grounded explanation for this phenomenon. This article presents an explicit definition in order to provide a stringent understanding of the term offshoring along the dimensions of contractual/legal arrangement and geographic location. Further, the driving forces of offshoring are analyzed on the environmental and company levels. The article closes with a discussion of managerial implications and an outlook on aspects for further research. Keywords: Offshoring, Offshore Outsourcing, Offshore Buying, Make or Buy Decision
2.1 Introduction
The continuous search for efficiency gains and the goal of attaining a sustainable competitive advantage have steadily increased the volume of goods and services procured globally from third party vendors (Kotabe and Murray, 1990). Nevertheless, research on how the purchasing function of a company could and should adapt to these developments is still scarce (Quintens, Matthyssens and Faes, 2005). In this hardly researched context of international purchasing, especially when focusing on the services sector, offshoring has become a more frequently mentioned concept, also in combination with terms such as"offshore buying" (Giunipero and Monczka, 1997). In order to be aware of and able to effectively implement innovative approaches for better leveraging global cost differentials, a clear understanding of offshoring and its implications is as important for supply management practice as it is for academia.
2.1.1 Offshoring: widely discussed, hardly defined
It should be noted that the topic of offshoring is deeply interrelated with the make-or-buy decision, as sourcing decisions in general have their origins in make/buy alternatives (Culliton, 1942). The question, which processes of a company can be supplied by external providers or should be maintained inhouse, is in turn related to the core competencies concept (Prahalad and Hamel, 1990, Quinn and Hilmer, 1994). This approach should be particularly useful when the question of"what" to offshore lies at the centre of interest. As this article focuses on the terminological issues and the diffusion of the phenomenon in general, the concept of core competencies is not treated in detail.
The term offshoring is in fact used to describe a multitude of scenarios (compare table 1), as it is seldom explicitly defined in literature. Furthermore, academic research on offshoring often lacks a theoretical framework based on economic theories for argumentation or testing. While the work of Arnold (2000) on outsourcing as well as the paper of Mol et al. (2004) on international purchasing are notable exceptions, many articles show a focus on the practical implications and the actual handling of an international sourcing or offshoring decision (e.g. Robinson and Kalakota, 2004, Smith, Mitra and Narasimhan, 1996, Sathyanarayan, 2003, von Campenhausen, 2005).
As table 1 illustrates, other topics currently addressed include the implications offshoring has on organizations innovativeness as well as productivity (Mol et al., 2004, Kotabe, 1990). Considering the empirical investigation of various aspects of offshoring, a literature review reveals that offshoring has so far undergone only limited quantitative investigation. No more than three studies with a sample size exceeding 30 respondents could be identified (Kotabe, 1990, Lowson, 2001, Mol et al., 2004). Next, the research questions addressed in these articles as well as their key findings will be summarized.
Foreword
6
Acknowledgements
7
Table of Contents
8
List of Figures
10
List of Tables
11
Table of Abbreviations
12
1 Introduction
13
2 Offshoring: Dimensions and Diffusion of a New Business Concept
19
Abstract
19
2.1 Introduction
20
2.2 The offshoring concept in practice
25
2.3 The offshoring concept in theory
27
2.4 Environmental driving forces for the offshoring phenomenon
32
2.5 The offshoring concept on the company level exploring aspects of transaction cost economics, the resource - based view and the market-based view
36
2.6 Conclusion, managerial implications and further research needs
44
3 Barriers of Purchasing Involvement in Marketing Service Procurement
51
Abstract
51
3.1 Introduction
52
3.2 Theoretical considerations
54
3.3 Case study
63
3.4 Results
68
3.5 Conclusion
77
4 A Theoretical Approach to Problems in Buying Agency Services
81
Abstract
81
4.1 Introduction
82
4.2 Issues in purchasing agency services
85
4.3 Theoretical solution mechanisms for the issues identified
89
4.4 Research methodology
93
4.5 Case analysis and results
96
4.6 Conclusion and discussion
107
References
113
