Outsourcing best practice: transformational and transactional considerations

Kakabadse, Andrew; Kakabadse, Nada K.

doi:10.1002/kpm.161

Cited by 48 publications

(33 citation statements)

References 14 publications

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“…Without commitment from both leadership teams, it would be easy to regress into traditional adversarial thinking. For this reason, the outsourcing literature has cited the need to have involvement from top management as well as mid‐level management in the relationship management process (Kakabadse and Kakabadse, 2003; Quinn, 1999). Ultimately, the organization must view the engagement as a partnership (Dwyer et al, 1987; Mohr and Spekman, 1994; Prahinski and Benton, 2004) where the driving question is “how do we maximize the total system value” rather than “how can we maximize our portion of the pie at the expense of our provider”.…”

Section: Outsourcing Process: Critical Elementsmentioning

confidence: 99%

Unlocking the business outsourcing process model

Handley

Benton

2008

J of Ops Management

152

154

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Outsourcing has emerged as a prevalent business practice that is having a transformational impact on how many organizations manage their global supply chains. Despite this prominence, anecdotal reports from multiple reputable organizations suggest that many businesses fail to realize the benefits anticipated from their outsourcing initiatives. Motivated by these observations, this study investigates those management practices during the outsourcing process that are key drivers of outsourcing performance. Specifically, detailed data from 198 sourcing executives and managers responsible for outsourcing initiatives are used to investigate the influence that strategic evaluation, contractual completeness, and relationship management practices have on achieving projected outsourcing results. The results offer strong empirical evidence that outsourcing performance is significantly influenced by extensive strategic evaluation and proactive relationship management practices. Moreover, the impact strategic evaluation has on outsourcing performance is not direct, but rather is partially mediated by the relationship between the parties. Finally, the results show that contractual completeness does not distinguish between successful and unsuccessful outsourcing efforts, and can be considered qualifying activity.

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Section: Outsourcing Process: Critical Elementsmentioning

confidence: 99%

Unlocking the business outsourcing process model

Handley

Benton

2008

J of Ops Management

152

154

View full text Add to dashboard Cite

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“…The growth in the importance of outsourcing can be attributed to the ability of outsourcing programs to create or protect competitive advantages for a firm (Narasimhan and Das, 1999;Venkatesan, 1992). This growth in importance has transformed outsourcing from a tactical procurement exercise to a strategic component of a business strategy (Kakabadse and Kakabadse, 2003). The strategic benefits and competitive advantages generated by a well-executed outsourcing plan can provide numerous competitive benefits, including improved quality, lower costs, increased flexibility, and superior product designs (Ettlie and Sethuraman, 2002).…”

Section: Introductionmentioning

confidence: 99%

Outsourcing congruence with competitive priorities: Impact on supply chain and firm performance

Kroes

Ghosh

2009

J of Ops Management

246

192

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The growth of outsourcing has led outsourcing strategies to become an increasingly important component of firm success (Gottfredson et al., 2005). While the purported goal of outsourcing in supply chains is to derive a competitive advantage, it is not clear whether the outsourcing decisions of firms are always strategically aligned with their overall competitive strategy. In this paper we evaluate the degree of congruence (fit or alignment) between a firm's outsourcing drivers and its competitive priorities and assess the impact of congruence on both supply chain performance and business performance, using empirical data collected from manufacturing business units operating in the United States. We find outsourcing congruence across all five competitive priorities to be positively and significantly related to supply chain performance. We also find the level of supply chain performance in a firm to be positively and significantly associated with the firm's business performance.

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“…A 'make' Downloaded by [Florida Atlantic University] at 05:04 18 November 2014 decision is unlikely in military operations because of the scarcity of military resources (Frerks et al ., 2006), the policy of untied development aid, and considerations of efficiency (Kakabadse and Kakabadse, 2003). Therefore, contracting out is likely to occur.…”

Section: General Criteriamentioning

confidence: 98%

“…A balance between trust and control is essential since generating trust reduces costs and stimulates the learning process. Developing a shared view, establishing personal relationships, and cultural sensitivity are critical (Kakabadse and Kakabadse, 2003).…”

Section: General Criteriamentioning

confidence: 99%

Construction contracting and civil–military interaction

Kremers

Rietjens

Voordijk

et al. 2010

Construction Management and Economics

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There is a need for improved insights into the contracting process for construction projects that the military contract out to civil contractors in the specific setting of civil–military interaction (CMI) in regions that are suffering from instability and armed conflict. The core questions are: what are the key criteria for contracting out CMI projects in out‐of‐area operations, and what contracting methods are appropriate? First, we discuss possible methods and key criteria for contracting out CMI projects. Following this, a case study based in the Uruzgan province of Afghanistan explores key criteria for contracting out CMI projects. Based on this case study, the following five CMI‐related criteria have been identified: generating information on the civilian environment; contributing to building local capacity; process transparency; force acceptance and local participation; and contracting as a tool for stability. These criteria dominate more regular criteria such as cost and time. Some methods frequently used in developed economies, for example the open public tender procedure, seem less appropriate when contracting out CMI projects within a military mission. In CMI projects, contracting most closely resembles the multiple negotiated tender procedure. Future projects can use the identified range of methods and key criteria in designing an improved contracting process.Contracting, tendering, Afghanistan, military mission, criteria,

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Outsourcing best practice: transformational and transactional considerations

Cited by 48 publications

References 14 publications

Unlocking the business outsourcing process model

Unlocking the business outsourcing process model

Outsourcing congruence with competitive priorities: Impact on supply chain and firm performance

Construction contracting and civil–military interaction

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