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Manufacturing outsourcing and its effect on plant performance: lessons for KIBS outsourcing
University of Gävle, Department of Technology and Built Environment, Ämnesavdelningen för industriell ekonomi. University of Gävle, Center for Logistics and Innovative Production. (Industriell ekonomi)ORCID iD: 0000-0001-8238-034X
Department of Industrial Economics and Management, Royal Institute of Technology (KTH), Sweden. (Industriell ekonomi)
2009 (English)In: Journal of evolutionary economics, ISSN 0936-9937, E-ISSN 1432-1386, Vol. 19, no 2, p. 231-257Article in journal (Refereed) Published
Abstract [en]

Despite the proclaimed advantages and popularity of outsourcing manufacturing and knowledge-intensive business services, there are few and mainly contradictory studies of its short- and long-term effects. The main purpose of this paper is to analyze the way in which outsourcing manufacturing and design work relates to performance at plant level. The study is based on a large-scale survey among a representative sample of Swedish engineering plants. The results show no significant effects from outsourcing manufacturing on plant operating performance. The paper further shows that investments in technological and organizational capabilities explain the improvements of performance to a significantly higher extent than does outsourcing. The problems of additional costs and managing dependencies when applying partial outsourcing and separating interdependent key processes provide important insights to the analysis on the effects of outsourcing knowledge-intensive business services (KIBS).

Place, publisher, year, edition, pages
2009. Vol. 19, no 2, p. 231-257
Keywords [en]
KIBS; Manufacturing; Outsourcing; Performance
National Category
Mechanical Engineering
Identifiers
URN: urn:nbn:se:hig:diva-1724DOI: 10.1007/s00191-008-0129-1ISI: 000263797500005Scopus ID: 2-s2.0-61449171136OAI: oai:DiVA.org:hig-1724DiVA, id: diva2:118386
Available from: 2008-09-26 Created: 2008-09-26 Last updated: 2018-03-13Bibliographically approved

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Bengtsson, LarsDabhilkar, Mandar

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Ämnesavdelningen för industriell ekonomiCenter for Logistics and Innovative Production
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Journal of evolutionary economics
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CiteExportLink to record
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  • apa
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  • Other style
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  • sv-SE
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Output format
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