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Invest or divest?: on the relative improvement potential in outsourcing manufacturing
School of Industrial Engineering and Management, Department of Industrial Economics and Management, Royal Institute of Technology (KTH), Stockholm, Sweden. (Industriell ekonomi)
Högskolan i Gävle, Institutionen för teknik och byggd miljö, Ämnesavdelningen för industriell ekonomi. (Industriell ekonomi)ORCID-id: 0000-0001-8238-034X
2008 (svensk)Inngår i: Production planning & control (Print), ISSN 0953-7287, E-ISSN 1366-5871, Vol. 19, nr 3, s. 212-228Artikkel i tidsskrift (Fagfellevurdert) Published
Abstract [en]

The study sought to clarify the comparative effect of outsourcing in relation to alternative manufacturing practices. A representative sample of 267 Swedish manufacturing plants was subjected to multiple regression analysis. Results show that in comparison to outsourcing manufacturing, the other practices related to the enhancement of manufacturing capability had a much stronger ability to predict improvements in operating performance. While investments in higher manufacturing capability have only positive effects, outsourcing may entail negative as well as positive effects on operating performance. For the most part, outsourcing leads to negative effects when used as the main strategy to improve performance, but is more likely to cause positive effects if concurrent initiatives are taken to develop manufacturing capabilities. Thus it is argued that there is a far greater performance improvement potential in investing in, rather than divesting, the manufacturing function. Outsourcing is mainly beneficial when used to free resources in order to invest in higher manufacturing capability.

sted, utgiver, år, opplag, sider
2008. Vol. 19, nr 3, s. 212-228
Emneord [en]
Capability progression; Empirical research; Manufacturing; Outsourcing; Plant operating performance; Sweden
HSV kategori
Identifikatorer
URN: urn:nbn:se:hig:diva-1659DOI: 10.1080/09537280701830144ISI: 000254064600003Scopus ID: 2-s2.0-40849083861OAI: oai:DiVA.org:hig-1659DiVA, id: diva2:118321
Tilgjengelig fra: 2008-04-17 Laget: 2008-04-17 Sist oppdatert: 2018-03-13bibliografisk kontrollert

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