Incompetence and outsourcing: running backwards in the race to learn

Abstract

Argues that many firms have progressively destroyed the foundations of their competitive advantage by incrementally outsourcing such key competence‐sustaining activities. Distinguishes between ‘brand share’ — the quantity or market share of product sold under the corporation's brand, and the ‘manufacturing share’ — the proportion of the market that is internally produced by the firm. Sums up, that, although users of outsourcing take various steps to keep sensitive market information from outsource suppliers — the component or service provided by the supplier embodies valuable market information.

Citation

Gould, B. (1997), "Incompetence and outsourcing: running backwards in the race to learn", The Antidote, Vol. 2 No. 6, pp. 26-27. https://doi.org/10.1108/EUM0000000006357