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Dynamic outsourcing through process modularization

Lifang Wu (Williams College of Business, Xavier University, Cincinnati, Ohio, USA)
Daewoo Park (Williams College of Business, Xavier University, Cincinnati, Ohio, USA)

Business Process Management Journal

ISSN: 1463-7154

Article publication date: 17 April 2009

2897

Abstract

Purpose

The purpose of this paper is to introduce a dynamic outsourcing framework for making and implementing process outsourcing decisions in a rapidly changing environment.

Design/methodology/approach

The theoretical framework incorporates three major concepts/techniques: the order winner concept to identify strategic level competitive priorities, the modularization concept to reconfigure enterprise organizational structure, and the analytical hierarchy process technique for linking critical demand attributes with process modules at the operational level.

Findings

The study presents a dynamic outsourcing approach through organizational modularization and shows when and how core and non‐core activities can be outsourced in a fast changing market.

Research limitations/implications

The complexities of the framework will need facilitation and supports on issues such as organizational modularity, multi‐goal optimization, and empirical validation.

Practical implications

This paper offers practical insights and clarifies common confusions associated with strategic outsourcing.

Originality/value

The paper tries to fill the gap between the existing outsourcing literature and the practical need for choosing specific outsourcing activities at the operational level. The dynamic framework creates a foundation for continuous process improvement on a cyclic basis.

Keywords

Citation

Wu, L. and Park, D. (2009), "Dynamic outsourcing through process modularization", Business Process Management Journal, Vol. 15 No. 2, pp. 225-244. https://doi.org/10.1108/14637150910949461

Publisher

:

Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited

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