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How does the industry work with sourcing decisions?: Case studies at two Swedish companies
Mälardalen University, School of Innovation, Design and Engineering. (Product Realization)
2006 (English)In: Journal of Manufacturing Technology Management, ISSN 1741-038X, E-ISSN 1758-7786, Vol. 17, no 5, 547-560 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – The objective of this paper is to present how two Swedish companies work, or plan to work, with sourcing decisions. The aim is furthermore to analyze if their decision process, or parts of it, can be used as a base for building a rightsourcing decision model. In this paper rightsourcing is defined as; “the process to actively apply in-and outsourcing strategically to be competitive now and in the future”.

Design/methodology/approach – Since the business environment is dynamic and the global aspects are increasing, companies tend to focus on what they do best-their core competence. The concept of outsourcing has, therefore, been growing rapidly during the last decade. Many companies seem to have a vague understanding about the risks and benefits of outsourcing, except from a general idea that it will reduce cost. Many companies hence experience that sourcing decisions are complex and the need for a model supporting sourcing decision exist within many corporations. This is accomplished through a literature overview and a multiple case study.

Findings – The results indicate that a model for sourcing decisions ought to include, or be based on, following aspects, e.g. the companies overall strategy, the companies core competence, both qualitative and quantitative data and risk analysis. The sourcing process also ought to be made with a process approach, avoiding functional sub-optimization. The results also indicated that financial evaluation and documentation of the decision is important.

Research limitations/implications – The multiple case study was conducted in one mechanical company and one engineering company from Sweden. The fact that the study only included two studies could affect the possibility to generalize the result.

Originality/value – This paper offers help to companies that consider sourcing decisions.

Place, publisher, year, edition, pages
2006. Vol. 17, no 5, 547-560 p.
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
URN: urn:nbn:se:mdh:diva-13741DOI: 10.1108/17410380610668513Scopus ID: 2-s2.0-33744551485OAI: oai:DiVA.org:mdh-13741DiVA: diva2:466661
Projects
Product Realization
Funder
XPRES - Initiative for excellence in production research
Available from: 2011-12-16 Created: 2011-12-16 Last updated: 2016-01-11Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf