Outsourcing decision: do strategy and structure really matter?

Mishra, D.P.; Kumar, Sameer; Sharma, Ruchi; Dubey, Rameshwar

doi:10.1108/jocm-04-2017-0144

Cited by 11 publications

(11 citation statements)

References 95 publications

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“…These efforts may improve company focus, and may have the potential to yield significant benefit to the firms entirely. It also can allow organisations to focus on their core business (Yeboah, 2013;Sridarran & Fernando, 2016) and enables firms to accelerate their growth and success through concentrating their investment on areas that offer the greatest sustainable competitive advantage (Mishra et al, 2018;Sandhu et al, 2018).…”

Section: Improving Company Focusmentioning

confidence: 99%

Sustainable Outsourcing Decisions, Competitive Capabilities and Business Performance of Malaysian Manufacturing Smes: A Confirmatory Factor Analysis Approach

Zulkiffli¹,

Padlee²

2020

J. Sustain. Sci. Manage.

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The role of outsourcing in attaining competitive advantage and improving business performance has been widely discussed. Due to growing awareness of the importance of environmental and social responsibility issues, outsourcing firms see these issues as a strength that can be used to become more sustainable in the face of global competition. Therefore, based on an extensive literature review, a model consisting of six constructs (reducing operating costs, improving company focus, access to worldclass capabilities, unavailability of internal resources, competitive capabilities, and business performance) was developed to discover ways to push outsourcing firms to support sustainability efforts. Utilising the first-order confirmatory factor analysis (CFA) approach, a final 29-item survey covering six measurement constructs was developed and verified. The convergent validity of the constructs was also validated. The results provided an adequate fit to the Malaysian manufacturing SME data. The findings also highlighted some theoretical and methodological issues in relation to the application of the validated constructs in future work.

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Section: Improving Company Focusmentioning

confidence: 99%

Sustainable Outsourcing Decisions, Competitive Capabilities and Business Performance of Malaysian Manufacturing Smes: A Confirmatory Factor Analysis Approach

Zulkiffli¹,

Padlee²

2020

J. Sustain. Sci. Manage.

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“…Decentralization is a structural characteristic of an organization describing the extent to which the power of authority is either concentrated or shared (Hempel et al, 2012). It is generally considered to be one of the key dimensions of organizational structure (Mishra et al, 2018). Thus, choosing the appropriate level of decentralization is a major issue for management (Ecker et al, 2013).…”

Section: Theoretical Background and Hypotheses Development Strategymentioning

confidence: 99%

“…While many dimensions of classifying organizational structure have been proposed (Mishra et al, 2018), a key one is decentralization (Ecker et al, 2013;Hempel et al, 2012), whose benefits involve the effective use of local knowledge, conservation of management time, and the training and motivation of local managers (Brickley et al, 2004). These benefits mean that higher decentralization leads to greater empowerment, innovation and performance (Ben-Ner and Siemsen, 2017;Hempel et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

The mediating role of decentralization between strategy and performance

Chen

Eriksson

2019

JOCM

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Purpose The purpose of this paper is to empirically examine the mediating role of decentralization in the relationship between a firm’s strategy and its performance in the context of an advanced economy where the chief corporate strategy is differentiation. Design/methodology/approach The study uses data collected by an online survey targeting a stratified sample of 1,238 private firms operating in Denmark. The empirical analysis was carried out by estimating a structural equation model. Findings The key finding was that a decentralized organization (DO) can act as a mediator between a firm’s differentiation strategy and its performance. A multi-group analysis revealed that the mediating impact of decentralizing was affected by contingency factors such as firm size, strategic clarity, degrees of business environment risk and industry competition. Thus, a DO can be said to play a more important role in larger firms, in firms with less strategic clarity, and in companies with multiple plants. Research limitations/implications Although the study offers empirical evidence from a relatively large and representative sample of firms, the specificity of the context should be noted. In particular, firms in Denmark, while facing strong competition, do not compete with low costs. Clearly, studies of the mediating role of decentralization in low-cost strategy environments would be an important next step. Practical implications Several implications of the findings for organizational design and creation of beneficial conditions for strategy implementations are discussed. Originality/value The novel contribution of the study lies in the focus on decentralization as a mediator in the strategy–performance relationship. While previous research has shown that strategy is related to decentralization, and that decentralization is associated with higher performance, an empirical analysis of the relationship between the factors in the strategy-decentralization-performance path had not previously been undertaken.

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“…Also, they found that outsourcing HR practices within the organization has reduced HR flexibility, reduced HR processing time, decreased satisfaction and increased work of HR managers (Patel et al, 2017). In another analysis, the results indicate that companies that have customer-oriented approaches have the potential to outsource HR informal activities more than companies with analytical and defensive strategies (Mishra et al, 2018). Outsourcing of products to competitors has become a common practice in many industries.…”

Section: K 499mentioning

confidence: 99%

A dynamic model of strategic outsourcing with emphasis on human resources and work experience in power industry of Iran

Nikabadi

Hoseini

2019

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Purpose The production of a good or service requires that the supplier performs a wide range of activities. Many companies are trying to fit outsourcing with the dimensions of their organization. Outsourcing is increasingly being used among Iranian companies in the field of the electric power industry. Human resources are among the factors that consider outsourcing as an obstacle for their growth because staffs declare that the development of outsourcing is a serious threat for unemployment of them and ultimately expulsion from work. Thus, this study surveys the dynamic effects of human resources and work experience on outsourcing decisions. This paper aims to propose a model for dynamic strategic outsourcing focusing on human resource and work experience. Design/methodology/approach Presenting a model for strategic outsourcing can help organizations to resolve their outsourcing problems. The data needed for examining the dynamic impact of human resources and work experience on outsourcing have been compiled using library and field studies. The method used in this study is an integrated approach, so the model could consider the general effects of manpower and present a systematic view. After interviewing with experts in power industry, the causal relationships of the variables were determined, and a dynamic model based on the applications of the dynamic system was developed in VENSIM software. The research model will be completed in a three-year period (2016-2019) in the power industry of Iran. Findings For completing projects in an organization, cooperation between internal employees and external contractors is needed; thus, results based on both external contractors and internal staff have shown that outsourcing through working of a number of contractors will be more effective than frequent use of one contractor. On the other hand, improving the quality of projects could be done by training new employees using skilled and expert employees. Originality/value Existence of one-dimensional models (only with qualitative factors or only with quantitative factors) in the context of outsourcing in the past studies has prompted to study different types of factors together as a dynamic model. This paper presents a quantitative and qualitative model in the field of strategic outsourcing with emphasis on human resources and work experience. In the past studies, there was no way to formulate the qualitative factors, and they simply used the data from the organization, and the only formulation in their works was based on quantitative factors. But in this study, both factors with dynamic modeling have been formulated.

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Outsourcing decision: do strategy and structure really matter?

Cited by 11 publications

References 95 publications

Sustainable Outsourcing Decisions, Competitive Capabilities and Business Performance of Malaysian Manufacturing Smes: A Confirmatory Factor Analysis Approach

Sustainable Outsourcing Decisions, Competitive Capabilities and Business Performance of Malaysian Manufacturing Smes: A Confirmatory Factor Analysis Approach

The mediating role of decentralization between strategy and performance

A dynamic model of strategic outsourcing with emphasis on human resources and work experience in power industry of Iran

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