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1

Chaudhury, Reuben, Dieter Gerdemann, and Bharat Kapoor. "Innovation advantage: insourcing engineering." Strategy & Leadership 43, no. 6 (2015): 3–9. http://dx.doi.org/10.1108/sl-08-2015-0066.

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Purpose – The authors make the case that insourcing engineering is a strategic investment in developing a company’s core competence and innovative capacity needed to continually push the frontiers of its markets, which is essential to creating fresh marginal value under all scenarios. Design/methodology/approach – The authors layout the risks of outsourcing engineering and explain why the benefits of insourcing engineering are great and likely to grow more critical in the near future. Findings – As the Internet of Things opens vast new possibilities for differentiating nearly everything such companies might build, innovative engineering to achieve superior connectivity, functionality and invulnerability becomes critical to competitive advantage. Practical implications – Insourcing engineering not only resurrects the innovation and IP that distinguish sustainably successful market leaders, it also increases the ability to keep ideas secret until the production stage, thus allowing for full commercialization. Originality/value – A leading practitioner at General Electric describes his firm’s experience with outsourcing engineering and why it reversed course and began insourcing engineering again.
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Grela, Grzegorz, and Mariusz Hofman. "Does insourcing of processes pay off?" Journal of Global Operations and Strategic Sourcing 14, no. 3 (2021): 477–501. http://dx.doi.org/10.1108/jgoss-06-2020-0029.

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Purpose This study aims to examine whether insourcing of processes pays off and verifies key hypotheses regarding the financial ratios of organisations. Design/methodology/approach This paper randomly selects and then surveys 1996 organisations, of which 9.5% (190) stated that they used insourcing, 1.9% (37) made a decision to implement insourcing in the near future and 88.6% did not use insourcing. Then, for available firm data (100 insourcing firms and 100 firms without it), the financial statements of the surveyed companies were obtained to compare the most important financial ratios. The financial situation was compared at four-time points. The mean and median values of individual indicators were compared with the significance of relevant statistical tests. Findings A U-shaped curve of financial results in the time of enterprises that implemented insourcing and reverse U-shaped curve for enterprises that did not have insourcing are seen. Thus, the insourcing of processes pays off in the long run. Research limitations/implications Limitations exist in the generalisation of the results obtained, due to the limited number of samples qualified for analyses (limited reliable financial data). Practical implications The research highlights the importance of effective insourcing projects in the long term. Originality/value This study is the first to quantify the financial performance of companies that have used insourcing in comparison with a reference group. This paper defines insourcing and contributes to the growing number of studies on insourcing by bringing attention to the financial outcomes in the long run.
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Dombrowski, Uwe, Henning Leichnitz, and Pawel Sliwonik. "Komplexitätsreduzierung durch Insourcing." ZWF Zeitschrift für wirtschaftlichen Fabrikbetrieb 102, no. 4 (2007): 222–26. http://dx.doi.org/10.3139/104.101130.

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Specht, Dieter, and Christian Mieke. "Re-Insourcing von Instandhaltungsbereichen." ZWF Zeitschrift für wirtschaftlichen Fabrikbetrieb 100, no. 7-8 (2005): 412–15. http://dx.doi.org/10.3139/104.100918.

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Singhania, Monica, and Puneet Gupta. "First Telecom – India 2.0 strategy." Emerald Emerging Markets Case Studies 6, no. 2 (2016): 1–11. http://dx.doi.org/10.1108/eemcs-04-2015-0067.

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Subject area This case looks at a recent shift in the way organizations look to leverage the benefits from India as a cost-effective destination to provide services. What started, around 15 years back, as an activity to outsource all non-core activities to Indian companies to take the advantage of cost-effective resources, has now given way to a new model where the focus is on two key aspects, namely, “insourcing of work” and “transfer of core activities to India”. This is because of the realization that outsourcing may be a short-term solution for non-core activities; however, to build a sustainable capability that is both cost-effective and value-oriented, insourcing is key. Also, it is not just non-core activities that can be supported remotely; many core activities that have been managed by on-shore teams are increasingly being shifted to India to leverage the depth of skills available in the country. First Telecom has undertaken pioneering work in this domain by moving some of the critical functions to India and has created Centers of Excellence (CoEs) providing niche services to rest of the world. Study level/applicability Target audience includes corporate executives, students of MBA/postgraduate program in management in strategic management and/or workshops for understanding the concept of insourcing, cost transformation, business environment analysis and growth strategies for future. Case overview First Telecom has adopted what could be termed as “India 2.0” as the strategy to transform their operations worldwide to utilize the full potential of “India” as a service sector-outsourcing destination. The focus is not only on cost-avoidance but also on standardization of processes and mobilization of resources in a CoE setting to maximize the benefits. This case attempts to understand the way to go about it and the expected returns in a quantifiable manner. Expected learning outcomes To develop an understanding of business environment in the context of large multinational organizations that are constantly evolving to improve their operational excellence. Also, to develop an understanding of the outsourcing market and how companies are looking to move their core services to cost-effective locations to achieve the next phase of cost transformation after the outsourcing (non-core services) wave. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 1: Accounting and Finance
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Damanpour, Fariborz, Catherine Magelssen, and Holly H. Chiu. "Outsourcing and Insourcing Organizational Services: Operational Capabilities & Strategy Recurrence." Academy of Management Proceedings 2013, no. 1 (2013): 13137. http://dx.doi.org/10.5465/ambpp.2013.13137abstract.

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Johansson, Björn, Max Lilja, and Ludvig Tarland. "The Need for Boundary Spanners in an Offshore Insourcing Strategy." Procedia Computer Science 181 (2021): 572–79. http://dx.doi.org/10.1016/j.procs.2021.01.204.

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8

Silva, Lucas Eric Da, Kaique Doratiotto, and José Geraldo Vidal Vieira. "Outsourcing or insourcing logistics activities: a Brazilian case study." International Journal of Integrated Supply Management 12, no. 3 (2019): 167. http://dx.doi.org/10.1504/ijism.2019.099702.

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Vieira, José Geraldo Vidal, Lucas Eric Da Silva, and Kaique Doratiotto. "Outsourcing or insourcing logistics activities: a Brazilian case study." International Journal of Integrated Supply Management 12, no. 3 (2019): 167. http://dx.doi.org/10.1504/ijism.2019.10021378.

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Singhania, Monica, and Puneet Gupta. "First Telecom: Insourcing vs. Outsourcing." Emerald Emerging Markets Case Studies 4, no. 5 (2014): 1–7. http://dx.doi.org/10.1108/eemcs-10-2013-0203.

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Subject area This case attempts to study one of the key problems faced by a multinational organisation in the globalised environment that exists today: whether to outsource or insource. Outsourcing deals with getting into a contract with an outside vendor/supplier (local to the region in question) to deliver services to the parent company as per the agreed deliverables. On the other hand, insourcing deals with setting up operations in the destination country and hiring local staff on behalf of the company to do the same tasks. Historically, outsourcing has been considered a better choice because of several benefits such as the ease of setting up operations, a predictable costing model and reduced capital investment. However, it comes with its own set of disadvantages as well, including a high attrition rate and a sub-standard level of quality in the deliverables. Apart from the quantifiable parameters, there are several qualitative parameters as well, which encompasses the employees' passion/commitment towards the company, sense of achievement and performance management process. This case considers an existing situation in First Telecom (henceforth, referred as FT), where they have outsourced one part of their operations to multiple providers in India and are now facing huge issues with the quality of the deliverables; as a result, FT are now looking to explore if an insourced solution would be more cost-effective and productive. It evaluates the two models against various parameters and makes a recommendation on the preferred model. Study level/applicability This case can be used as a teaching tool in the following courses: MBA/postgraduate programme in strategic decision-making; MBA/postgraduate programme in management in management accounting and management control systems; and executive training programme for middle- and senior-level employees to look at the various factors involved (in addition to cost) that should be taken into account while comparing outsourcing versus insourcing. Case overview FT is a communication service provider and has presence in more than 170 countries around the world. The company is considered among the top three telecom companies around the globe and offers solutions to multinational customers in the areas of networks, IP telephony, security services and other managed services. The company has more than 100,000 employees around the globe. In addition to the regular (on rolls) employees, the company also outsources a lot of its operations in various countries to local service providers. The services that this company outsources include software/tools development, solution pricing and in-life service management. Historically, the company has believed that outsourcing is a better alternative because of the ease of setting up operations and lower cost. However, because of the recent changes in the global market, there is a huge pressure within the company to reconsider all the functions and find ways to contain costs to help the company's bottom line. There have been numerous complaints about the quality of output from one of the outsourced functions, namely, the “Pricing Team”, which is being presently outsourced to two service providers in India. The lack of accuracy has cost the company a key opportunity valued at more than USD5 million and the COO is furious at this loss. He has tasked the head of business improvement to do a full review of the function and look at the possible alternatives the company can explore to avoid these issues in future. FT now wants to do a cost-comparison analysis of the existing set-up with a new insourced set-up considering all costs that would come into play. This would help FT to decide the future course of action to ensure reduced costs and enhanced operational efficiency from the process. Expected learning outcomes Understanding of cost-comparison parameters involved as an effective tool for strategy development and achieving organisational objectives; understanding of SWOT analysis (organisation level and decision level) and its applicability in the organisation context; understanding the Porter's five competitive forces model to illustrate the effect of environment on an organisation; and understanding of outsourcing and insourcing models and the pros and cons of each model, which is a key management decision in most multinational organisations. Supplementary materials Historical reports of the concerned unit in terms of the costs incurred, rate of attrition and operational efficiency achieved. Cost Accounting: A Managerial Emphasis, 14th ed., Charles T. Horngren, Srikant M. Datar and Madhav Rajan, Publisher: Prentice-Hall, 2012.Practical implications Based on the option (outsourcing versus insourcing) found to be better, appropriate actions would need to be taken in terms of either renewing the contracts with the outsourcing partners or preparing to terminate the existing contracts and hiring of talent from the market to replace the outsourced staff. Social implications For nearly two decades, India as a country has grown considerably and one of the key contributors in that growth has been “Business Process Outsourcing” from all across the world to India. While the outsourcing wave has provided the initial push to the economy of India, it would not be able to help sustain the momentum primarily because of two reasons: the first is the growth of other countries, such as Hungary, the Philippines and China, as alternatives for outsourcing (and equally may be more cost-effective at times); and the second reason is the shift in various companies towards an insourcing model for critical functions. Therefore, as a country, India needs to move ahead and, instead of only focusing on providing resources to do the tasks outsourced by global companies, focus should now shift to promoting innovation and creativity among the workforce. A lot of companies nowadays are realising the importance of product innovation and are investing huge amounts in R&D to come up with breakthrough technologies that can help them create a sustainable development model. However, this should in no way be considered an end of the outsourcing era. Although there needs to be an effort towards improving the interlock process, outsourcing is here to stay because of the benefits it brings.
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11

Gassmann, Oliver, and Berislav Gaso. "Insourcing Creativity with Listening Posts in Decentralized Firms." Creativity and Innovation Management 13, no. 1 (2004): 3–14. http://dx.doi.org/10.1111/j.1467-8691.2004.00289.x.

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Cali, Jonathan, Heather Cogswell, Mompati Buzwani, Elizabeth Ohadi, and Carlos Avila. "Cost-benefit analysis of outsourcing cleaning services at Mahalapye hospital, Botswana." Journal of Hospital Administration 5, no. 1 (2015): 114. http://dx.doi.org/10.5430/jha.v5n1p114.

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Objective: As part of its national privatization strategy to diversify the economy, Botswana has started outsourcing nonclinical services at seven public hospitals. Hospital managers are signing contracts without knowing whether outsourcing offers better value for money than “insourcing”. The objective of this study is to assist hospital administrators in making evidence-based outsourcing decisions.Methods: We conducted a cost-benefit analysis of cleaning services at Mahalapye Hospital. We take the hospital manager’s perspective when considering two alternatives: outsourcing, and “insourcing”. We used an activity-based costing approach and monetised benefits by weighting costs of the alternatives based on a service quality survey of hospital managers.Results: After adjusting per quality of the service, outsourcing provides greater value for money in terms of “cleanliness per pula spent” than insourcing. Incremental costs of outsourcing are Botswana Pula (BWP) 5 million (US $524,135) over five years but outsourcing is cost-beneficial after considering quality. The benefit-cost ratio of 1.06 means that outsourcing would return six cents in value for every dollar invested, resulting in net gains for Mahalapye Hospital of BWP 1.7 million (US $182,365) over five years.Discussion: Important lessons for hospital managers include: 1) Assessing the value of outsourcing requires information on the unit price of the outsourced services; 2) Outsourcing can be more costly than insourcing; 3) Outsourcing may be justified if it increases the quality of the service; 4) Collaboration between hospitals and vendors could reduce costs and increase benefits for both vendor and purchaser; and 5) Outsourcing should get more cost-beneficial as vendors and hospitals gain experience working together.Conclusions: The lessons from this study are relevant to other hospitals considering outsourcing agreements. Outsourcing requires managerial skills, supported by sound benchmark data and proper quality monitoring to streamline operations, achieve value for money and improve service delivery so hospitals can focus on core clinical services.
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Caputo, Antonio C., and Mario Palumbo. "Manufacturing re‐insourcing in the textile industry." Industrial Management & Data Systems 105, no. 2 (2005): 193–207. http://dx.doi.org/10.1108/02635570510583325.

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Chaikin, Philip, Sylvain Durrleman, Florence Berger, Johan Reinhoudt, Ibrahim Farr, and Martin Ford. "Insourcing International Clinical Trials to Affiliates: A Business-Driven and Medically Sound Strategy." Drug Information Journal 34, no. 4 (2000): 1293–301. http://dx.doi.org/10.1177/009286150003400436.

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Nordigården, Daniel, Jakob Rehme, Staffan Brege, Daniel Chicksand, and Helen Walker. "Outsourcing decisions – the case of parallel production." International Journal of Operations & Production Management 34, no. 8 (2014): 974–1002. http://dx.doi.org/10.1108/ijopm-06-2012-0230.

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Purpose – The purpose of this paper is to investigate an underexplored aspect of outsourcing involving a mixed strategy in which parallel production is continued in-house at the same time as outsourcing occurs. Design/methodology/approach – The study applied a multiple case study approach and drew on qualitative data collected through in-depth interviews with wood product manufacturing companies. Findings – The paper posits that there should be a variety of mixed strategies between the two governance forms of “make” or “buy.” In order to address how companies should consider the extent to which they outsource, the analysis was structured around two ends of a continuum: in-house dominance or outsourcing dominance. With an in-house-dominant strategy, outsourcing complements an organization's own production to optimize capacity utilization and outsource less cost-efficient production, or is used as a tool to learn how to outsource. With an outsourcing-dominant strategy, in-house production helps maintain complementary competencies and avoids lock-in risk. Research limitations/implications – This paper takes initial steps toward an exploration of different mixed strategies. Additional research is required to understand the costs of different mixed strategies compared with insourcing and outsourcing, and to study parallel production from a supplier viewpoint. Practical implications – This paper suggests that managers should think twice before rushing to a “me too” outsourcing strategy in which in-house capacities are completely closed. It is important to take a dynamic view of outsourcing that maintains a mixed strategy as an option, particularly in situations that involve an underdeveloped supplier market and/or as a way to develop resources over the long term. Originality/value – The concept of combining both “make” and “buy” is not new. However, little if any research has focussed explicitly on exploring the variety of different types of mixed strategies that exist on the continuum between insourcing and outsourcing.
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Øivind Madsen, Dag. "Examining the popularity trajectory of outsourcing as a management concept." Problems and Perspectives in Management 15, no. 2 (2017): 178–96. http://dx.doi.org/10.21511/ppm.15(2-1).2017.02.

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This paper examines the popularity trajectory of outsourcing as a management concept. The paper shows that while outsourcing is an old management practice that has roots that date back centuries, it did not gain widespread popularity as a modern organizational practice until the 1980s. While the initial outsourcing hype and craze of the late 1980s and early 1990s has waned, outsourcing has shown considerable staying power as a management concept, even in the face of counter-movements such as backsourcing and insourcing. Although the experiences with implementation of outsourcing are mixed, outsourcing remains a widely used management concept. However, the current relatively low satisfaction level among users could influence the future popularity trajectory of the outsourcing concept.
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Miller, Thomas I., Michelle M. Kobayashi, and Paula M. Noble. "Insourcing, Not Capacity Building, a Better Model for Sustained Program Evaluation." American Journal of Evaluation 27, no. 1 (2006): 83–94. http://dx.doi.org/10.1177/1098214005283185.

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Dayyala, Niharika, Faruk Arslan, Kent A. Walstrom, and Kallol K. Bagchi. "Co-Diffusion Effects in Software Sourcing Arrangements." Information Resources Management Journal 33, no. 4 (2020): 33–52. http://dx.doi.org/10.4018/irmj.2020100103.

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This study analyzes the temporal diffusion of software sourcing arrangements by applying innovation diffusion theories. The study tests the co-diffusion effects 1) between onshoring and offshoring and 2) between insourcing and outsourcing. The results from the analysis indicate the existence of one-way complementary co-diffusion effects between on-shoring and offshoring and between outsourcing and in-housing. Positive, significant effects of innovation were found for in-housed, on-shored, and offshored software projects. Furthermore, a negative, significant effect of imitation was found for outsourced software projects. Indications were co-diffusion effects are stronger than diffusion effects.
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Jensen, Per Anker. "Strategic sourcing and procurement of facilities management services." Journal of Global Operations and Strategic Sourcing 10, no. 2 (2017): 138–58. http://dx.doi.org/10.1108/jgoss-10-2016-0029.

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Purpose The purpose of this paper is to provide insights into strategic sourcing concerning facilities management (FM) and how it can contribute to a sourcing decision that combines the benefits of internal and external provision with consideration of business risk and cost. Design/methodology/approach The paper investigates a strategic sourcing and procurement process in a large public organisation in Denmark based on participating in internal meetings, a workshop, document studies and interviews. The process is compared to a new ISO standard with guidance on strategic sourcing and development of FM agreements. Findings A problem in the new ISO standard is that it is based on sequential model starting with detailing the demand and needs before investigating sourcing option. The case shows that the way needs are specified are depending on the chosen sourcing models. Based on a thorough analysis, the organisation decided to change the sourcing strategy with insourcing the most critical building-related activities and changing the procurement strategy from one integrated FM contract to three bundled and seven single-service contracts. The concept of right-sourcing is discussed. Research limitations/implications The research is based on a study of one public organisation, which limits the possibility to generalise the results. However, it provides detailed insights into the strategic sourcing process in FM, which can give inspiration for practitioners and further research. Originality/value The paper throws light on a strategic sourcing process which is rarely available in public because of confidentiality considerations, and it provides the first evaluation of the new ISO standard from 2016.
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Rouquet, Aurélien, Kiane Goudarzi, and Tatiana Henriquez. "The company-customer transfer of logistics activities." International Journal of Operations & Production Management 37, no. 3 (2017): 321–42. http://dx.doi.org/10.1108/ijopm-01-2015-0049.

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Purpose The starting point of the paper is the fact that customers participate in the logistics activities of the supply chain (SC) (Johnston, 1989; Granzin and Bahn, 1989). Having established that customers can and do participate in logistics, firms can consider transferring some of their logistics activities to/from their customer. The transfer can take two contrasting forms: outsourcing by the company of some logistics activities to its customers or insourcing by the company of some logistics activities from its customers. The purpose of this paper is to contribute to a theoretical understanding of these company/customer transfers. Design/methodology/approach To address this emerging issue, the authors build on the service management literature and on the study of two contrasting cases of transfer. The first (IKEA) examines the outsourcing of some logistics activities to the consumer. The second (AuchanDrive) examines the reverse process of insourcing. Findings Based on the service management literature and the two case studies, the authors develop a theoretical model for the transfer of logistics activities between a firm and its customers. The findings confirm several elements, such as the importance of managing customer participation and adapting service production during a transfer. Most importantly, the findings show that a key issue for a firm during a transfer is the need to redesign its SC in terms of transport, warehousing and production. The main contribution of the research therefore is showing that customer participation in logistics is a key variable in SC design. Research limitations/implications This research is based on the analysis of two cases. To generalise these results, further research needs to be conducted. Practical implications This research proposes recommendations to help managers and organisations to transfer some logistics activities to or from their customers. Originality/value The originality of the framework is that it considers both the company and its customers. This comprehensive approach establishes a link between supply chain management research and marketing.
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Bals, Lydia, Jon F. Kirchoff, and Kai Foerstl. "Exploring the reshoring and insourcing decision making process: toward an agenda for future research." Operations Management Research 9, no. 3-4 (2016): 102–16. http://dx.doi.org/10.1007/s12063-016-0113-0.

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Vishnyakov, Yu D., S. P. Kiseleva, L. V. Makolova, V. V. Pham, and T. T. Vu Huong. "Environmental-oriented development of enterprises of agricultural industry and advanced training of personnel in agricultural environmental management." Upravlenie 7, no. 2 (2019): 24–32. http://dx.doi.org/10.26425/2309-3633-2019-2-24-32.

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The directions of the ecological-oriented development of enterprises of the agro-industrial complex have been analyzed through the implementation of the principles of rational resource consumption. The purpose of the article is to form the scientific basis for the effective use of non-renewable resources by enterprises of the agro-industrial complex in modern economic conditions. A study has been conducted on the causes of waste accumulation in agricultural enterprises and the stages of the greening mechanism of the enterprise functioning have been analyzed. The mechanism of greening the functioning of an enterprise has been considered on the basis of an analysis of the stages, which implies the consistent introduction of technologies and equipment, which makes it possible to reduce the negative impact of agricultural enterprises on the environment.On the basis of the developed general strategy of the enterprise in the field of resource consumption, two models of resource management of an agricultural enterprise have been presented through the use of insourcing and outsourcing tools. The model using insourcing tools assumes the reorientation of the company’s own assets, that are not used in production activities for the cleaning and processing of secondary resources. The model with the use of outsourcing tools assumes the involvement of third-party organizations for the collection and processing of waste in secondary resources. The range of effective implementation of the proposed models in the activities of an agricultural enterprise has been determined. The importance of advanced management training in the field of agricultural economics in the interests of sustainable development of the agro-industrial complex has been denoted and proposals from the State University of Management (SUM) in this area have been presented. The Department of Environmental Management and Environmental Safety has proposed the preparation of masters for the implementation of all activities stipulated by the educational standard in the field of agro-ecological management. The structure of the proposed educational program “Agroecological Management” contains disciplines (modules) of a theoretical and applied nature, that are relevant for the study by specialists of the agro-industrial complex in accordance with the need to solve modern environmental problems.
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Ozturk, Ebru. "The impact of R&D sourcing strategies on basic and developmental R&D in emerging economies." European Journal of Innovation Management 21, no. 4 (2018): 522–42. http://dx.doi.org/10.1108/ejim-10-2017-0152.

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PurposeThe purpose of this paper is to investigate the impact of R&D sourcing strategies and their governance modes on basic and developmental R&D. Following the concept of cognitive distance, this research proposes that there are trade-offs between basic and developmental R&D when emerging economy firms engage in different R&D sourcing strategies. R&D sourcing can enable emerging economy firms to access different level of heterogeneity of knowledge inputs depending on the cognitive distance between the firm and its suppliers. Distance in cognition increases when firms obtain knowledge from abroad and independent suppliers in comparison to the acquisition of knowledge from home boundaries and affiliates.Design/methodology/approachTobit maximum likelihood estimation approach is used.FindingsUsing data from Turkish firms, this study finds out that offshore R&D with an outsourcing governance mode affects basic R&D. In contrast, domestic R&D with an insourcing mode influences developmental R&D.Originality/valueThis research extends recent efforts to better understand the determinants of different R&D types by examining offshore and domestic R&D together and by taking into account different governance modes of each R&D sourcing strategy. This study becomes important because it investigates this issue from the perspective of emerging economy firms.
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Viitamo, Esa, Seppo Luoto, and Timo Seppälä. "Servitization in contract manufacturing – evidence from Polar business cases." Strategic Outsourcing: An International Journal 9, no. 3 (2016): 246–70. http://dx.doi.org/10.1108/so-04-2016-0014.

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Purpose This paper aims to contribute to the scholarly debate on the origins and nature of industrial servitization. By resorting to contract manufacturing (CM) as an empirical case, it is posited that any product-service solution that a manufacturing firm is capable of delivering on a competitive basis mirrors its goals in value creation and capture, positioning within its value networks and the pool of assets and competences it holds. Design/methodology/approach To support this argument, a comparative case study of two CM firms that represent polar cases in the industry was conducted. The primary data were collected through participatory methodology, observations and semi-structured interviews of company representatives. The business experiences of an industry practitioner provided a distinct contribution to the content analysis and modelling. Findings It was concluded that servitization becomes endogenous as contract manufacturers aim for higher profitability through the insource of customer activities and hence extend their offering downstream in the supply chain. The findings suggest that the way out of the servitization trap is a shift toward original design and manufacturing business, where high value-adding modules are insourced and integrated into replicable solutions for various types of customers and market segments. Research limitations/implications The generalization of the conclusion is constrained by the limited focus on two cases only. More industry and company data are therefore required to further validate this argument. Particularly valuable will be the data on the intermediate business models between the two polar cases. Originality/value Building on contested business practices, this paper outlines the logic of competitive strategy in CM on the basis of specific characteristics and implications of the various business concepts. In this case, the principal drivers of servitization are the acquisition of supporting capabilities and insourcing of customer activities. The case study method integrates theory with academic observation and managerial experiences.
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Hartman, Paul L., Jeffrey A. Ogden, and Benjamin T. Hazen. "Bring it back? An examination of the insourcing decision." International Journal of Physical Distribution & Logistics Management 47, no. 2/3 (2017): 198–221. http://dx.doi.org/10.1108/ijpdlm-09-2015-0220.

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Purpose Discussion regarding the implications of and antecedents to the decision to outsource manufacturing functions has dominated both the academic literature and popular press for over 30 years. However, economic and competitive landscapes across the globe have changed such that the tenability of outsourcing is being re-evaluated by many organizations. Using the rich body of literature regarding the decision to outsource as a starting point, the purpose of this paper is to investigate the reasons why firms insource and the associated implications thereof. Design/methodology/approach This case study research captures data from 12 firms in the manufacturing industry that have insourced a previously outsourced function. Data were collected via interviews with executives, researcher observations, and archival records over a nine-month period. Findings The findings suggest that the primary drivers for insourcing were predominantly the same as those cited for outsourcing. However, insourcing decisions are often made in response to a specific, external trigger event and not necessarily in concert with long-term, strategic goals. This is in contrast to firms’ desires to make more strategic location decisions. The findings also show that insourcing/outsourcing location decisions require continuous evaluation in order to optimize competitiveness and align with long-term firm goals. Research limitations/implications This research contributes by not only assimilating and gaining an understanding of key factors affecting insourcing decisions, but also by establishing a baseline for future investigation into this burgeoning area via the presentation of testable propositions. Practical implications This paper provides insights for supply chain, logistics, and operations management professionals who seek to better understand the critical factors that should be considered when deciding whether or not to insource. Originality/value The benefits of insourcing are being considered to a greater extent across industry, yet there is a dearth of academic or practitioner literature that business leaders and academicians can use as the basis for examining this decision. This research provides both the basis and motivation for developing knowledge in this area of increasing importance.
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Qu, Wen Guang, Wonseok Oh, and Alain Pinsonneault. "The strategic value of IT insourcing: An IT-enabled business process perspective." Journal of Strategic Information Systems 19, no. 2 (2010): 96–108. http://dx.doi.org/10.1016/j.jsis.2010.05.002.

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Drauz, Ralf. "Re-insourcing as a manufacturing-strategic option during a crisis—Cases from the automobile industry." Journal of Business Research 67, no. 3 (2014): 346–53. http://dx.doi.org/10.1016/j.jbusres.2013.01.004.

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Castellani, Marco. "Anticipazione strategica e riposizionamento nella filiera distrettuale. Il caso Sabaf." STUDI ORGANIZZATIVI, no. 2 (December 2009): 150–72. http://dx.doi.org/10.3280/so2009-002008.

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- Sabaf Group is a worldwide leading gas cooking appliance manufacturer. The firm, which has been playing since the fifties a major role in the metalworking industrial district of "Valli Bresciane", planned a re-organization during the late nineties. Drawing upon a clear separation between ownership and management, the firm started up an industrial restructuring focused on the insourcing of the pressure die casting process for the making of burners and the brand new production of aluminium alloys. The strategic anticipation took place as consequence to Sabaf's forecast for the forthcoming decline of the district-area (2000-2004), and firm's management decided to move from the "core" of the district (Lumezzane) to the border of it (Ospitaletto), a choice which meant to overcome some typical external economies of the marshallian district. The entire manufacturing department was replaced and a joint engineering (processes and products) method was also adopted with considerable results that allowed the firm in becoming one of the most innovative players in its sector. Corporate governance and social and environmental sustainability turned out to be the main drivers of the firm's lead over other competitors and now represent also thecrucial keys for facing current crisis in a pro-active way, rather than simply in a reactive manner.
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Kantarelis, Demetri. "The firm as a function of deals." International Journal of Law and Management 56, no. 4 (2014): 311–32. http://dx.doi.org/10.1108/ijlma-10-2012-0036.

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Purpose – The purpose of this paper is to attempt a justification as to why a profit-making firm may be viewed as a function of its nucleus expertise and a risky portfolio of deals. Design/methodology/approach – This is a theoretical paper relying on mathematics, graphs and verbal arguments to describe concepts. Findings – A profit-making firm can gain even more if it reduces the risk of its portfolio of deals. In its effort to reduce such a risk, the firm needs to know each deal’s profit share and be able to estimate each dealing partner’s reliability (a random variable). Research limitations/implications – The proposed hypotheses are not empirically tested, an exercise left to future work. Practical implications – Pragmatically, a profit-making firm may be viewed as a function of its strategic nucleus and its strategic federation. The firm may increase its gains by minimizing deals’ risk through a portfolio of deals diversification. The more the firm considers factors such as mediation, optimal commitments and the like, the more effective and efficient becomes the management of the portfolio of deals. Social implications – As explained through examples and illustrations, viewing the firm as a function of deals benefits the parties in such deals as well as other stakeholders (community, region, nation, etc), e.g. less costly deals contribute to more profit and more growth. Originality/value – A profit-making firm is viewed as an entity that manages a risky portfolio of promisor- and promisee-type deals. The ideas in this paper may be of value to today’s global, knowledge-based, outsourcing/insourcing firms which may find it increasingly difficult to rely on conventional contracts.
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Buldeo Rai, Heleen, Sara Verlinde, Cathy Macharis, Penelope Schoutteet, and Lieselot Vanhaverbeke. "Logistics outsourcing in omnichannel retail." International Journal of Physical Distribution & Logistics Management 49, no. 3 (2019): 267–86. http://dx.doi.org/10.1108/ijpdlm-02-2018-0092.

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Purpose The purpose of this paper is to identify in what way logistics service providers are involved in the logistics operations of omnichannel retailers. Given the importance of logistics in omnichannel retail and the complexities that it brings forth, it is unclear if the current tendency towards logistics outsourcing continues, and how logistics service providers should adapt to remain relevant in the omnichannel retail environment. Design/methodology/approach The research draws on both desk and field research. The authors analysed the scientific information available on omnichannel retail logistics and conducted semi-structured expert interviews with food and non-food retailers that adopt an omnichannel model. Findings The research demonstrates distinct differences between food and non-food retailers. While food retailers are inclined to organise fulfilment and last mile activities in-house, non-food retailers partner closely with logistics service providers. Nonetheless, the store network of non-food retailers is attracting a growing part of logistics activities, which retailers are building themselves. To sustain their relevance in the omnichannel environment and strengthen their position for the future, the authors created a competency recommendation framework for logistics service providers, in which service differentiation is proposed as a viable direction for growth. Research limitations/implications The research is based on insights from retailers based in the Brussels-Capital Region (Belgium) and requires further and wider testing in other contexts and geographical areas. Practical implications The findings have strategic importance for retailers that are developing an omnichannel retail model and logistics service providers that (aim to) serve clients and operate activities within the retail sector. Originality/value The research provides a holistic view of logistics in omnichannel retail by identifying insourcing and outsourcing mechanisms and developing competency recommendations to fulfilment, internal transport and last mile transport in omnichannel retail.
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Krykavskyy, Yevhen, and Nataliya Hayvanovych. "Competitiveness of Family SMEs in the Supply Chain." Journal of Intercultural Management 11, no. 1 (2019): 81–103. http://dx.doi.org/10.2478/joim-2019-0004.

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Abstract Objective: The goal of the article is to study the problem of identification of the correlation between the goals and development strategies of network structures (organizations) and the goals and strategies of SMEs, realization of their harmonization and synergy effect generation as well as adaptation of typical strategies to the conditions of functioning of small and medium-sized family businesses within network structures. Methodology: Theoretical (critical analysis of sources, data systematization, statistical analysis, comparative analysis, hypothesis formulation, etc.) and empirical (survey method, observation, critical analysis, hypothesis verification, etc.) research methods are used in the article. In order to study the prospects of and readiness of small enterprises for cooperation within network structures an express questionnaire online survey of the representatives of small companies in different sectors of Lviv and Lviv region (Ukraine) was conducted. The sample included 134 respondents. Findings: Calculation and statistical analysis of empirical material collected within the survey has not confirmed the assumption made by the authors about presupposed that the overwhelming majority of the representatives of small and micro enterprises would be open to (ready for) cooperation in the supply chains, ready for close interaction in the field of IC, business process integration with the supply network or chain participants/partners, etc. Only 7.6% are ready to be active participants of network structures, 84.6% are not yet clear about that, while 7.8% object to such cooperation. Less than 40% are ready to integrate their ICs with the ICs of network participants, and the same is the number of those who are not yet clear about that. The largest number of negative answers was given to the question about the readiness to share competences, expertise with network participants – 38.5% and 30.7% are not clear about that. Commodity (service) certification procedure is the direction where the representatives of SMEs showed the strongest readiness for cooperation (69.2%) Value Added: The article suggests a model of the mechanism of strategic development of small and medium-sized family businesses in the supply chain. This model involves, primarily, combination of strategies specific to the micro level and integrated systems, and secondly, delineation of typifying of strategic decisions in such areas as the basic strategies of competitive behaviour, strategies of supply chain development, strategies of supply system planning, relationship institutionalization strategies and specialization strategies. Recommendations: Modern supply networks and chains must possess a considerable elasticity potential that will enable them to successful adjust to the turbulent environment. Such elasticity potential should be developed via involvement of small and medium-sized enterprises with a relatively narrow specialization. Such process must take place in the context of well-grounded decisions of out/insourcing in the distribution system and towards construction of network structures in the strategic dimension. Involvement of small and medium-sized enterprises will contribute to increased elasticity of network structures’ means.
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Barbieri, Paolo, Francesco Ciabuschi, Luciano Fratocchi, and Matteo Vignoli. "What do we know about manufacturing reshoring?" Journal of Global Operations and Strategic Sourcing 11, no. 1 (2018): 79–122. http://dx.doi.org/10.1108/jgoss-02-2017-0004.

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Purpose The aim of this paper is to analyze and classify research that has been conducted on manufacturing reshoring, i.e. the decision to bring back to the home country production activities earlier offshored, independently of the governance mode (insourcing vs outsourcing). Consequently, the paper also aims at providing avenues for future research and to highlight the distinct value of studying manufacturing reshoring either per se or in combination with other constructs of the international business tradition. Design/methodology/approach A set of 57 carefully selected articles on manufacturing reshoring published in international journals or books indexed on Scopus in the past 10 years was systematically analyzed based on the “5Ws and 1H” (who-what-where-when-why and how) set of questions. Findings The authors’ work shows a certain convergence among authors regarding what reshoring is and what its key features and motivations are. In contrast, other related aspects, such as the decision-making and implementation processes, are comparatively less understood. Research limitations/implications As manufacturing reshoring is a “recent” topic, for some of its aspects, only exploratory research is available to date, limiting the authors’ possibility to either characterize it in a more exhaustive way or highlight well-established patterns. Practical implications The paper demonstrates that studying reshoring will indeed contribute to expanding our understanding of internationalization processes and strategies in general and of production internationalization specifically. While past studies have argued that the learning derived from international experience would permit firms to overcome their unfamiliarity with new business environments, reshoring might show that this outcome is not necessarily certain. Rather, firms might not be able to overcome obstacles because of internationalization or they might realize that attempting to do so is not desirable, e.g. because of excessive risk or changes in the firm’s strategic priorities. Social implications From a societal point of view, the present research underlines that reshoring can be part of that re-industrialization policy that many Western countries include in their economic agenda – yet, its impact on employment should not be overestimated, as often relocation is only in regard to some product lines. At the same time, there might be an intimate relationship between reshoring and the various forms of technological innovations applied to manufacturing – which has become popularly labeled as “Industry 4.0”. Originality/value Literature reviews proposed until now usually paid almost exclusive attention to motivations driving this phenomenon. This paper offers a broader and more comprehensive examination of the extant knowledge of manufacturing reshoring and identifies the main unresolved issues and knowledge gaps, which future research should investigate.
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Dupuis, Mathieu, and Ian Greer. "Recentralizing Industrial Relations? Local Unions and the Politics of Insourcing in Three North American Automakers." ILR Review, June 7, 2021, 001979392110151. http://dx.doi.org/10.1177/00197939211015191.

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Since the auto industry’s 2008 crisis, the decades-long trend toward outsourcing by the Detroit Three automakers has stalled. During and after the crisis, original equipment manufacturers moved work inside their corporate boundaries, including the purchase of eight previously spun-off parts plants. Why has this happened? Drawing on 77 interviews in the United States and Canada and 27 insourcing cases, the authors explore how and why insourcing has taken place. Past literature has considered the costs and benefits of creating the vertically integrated corporation, the managerial politics behind vertical disintegration, and the labor–management relations that shape both. While much industrial relations scholarship points to decentralized plant-level partnerships as a union strategy to win investment, the authors find that local unionists are intervening in the politics of the corporation above the plant level to influence the purchasing, manufacturing, and engineering functions that determine the sourcing decision.
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"Asset Owners, Investment Management, and Commitment: An Organizational Framework." Journal of Retirement, February 1, 2019. http://dx.doi.org/10.3905/jor.2019.6.3.009.

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This article focuses on asset owners, such as pension funds, and their models of investment management and describes the choice between insourcing, outsourcing, and re-intermediation. Drawing on the principal-agent problem and emphasizing the challenges facing asset owners when attempting to realize value from asset managers, the authors identify the dimensions of the management “problem.” Implications are drawn for the management practices of asset owners and the implementation of investment strategy combining in-house capabilities with external relationships. The authors also identify a set of metrics of performance that is consistent with superior long-term investment performance metrics to a range of asset owners, large and small.
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