Strategic Outsourcing: An International JournalTable of Contents for Strategic Outsourcing: An International Journal. List of articles from the current issue, including Just Accepted (EarlyCite)https://www.emerald.com/insight/publication/issn/1753-8297/vol/9/iss/3?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestStrategic Outsourcing: An International JournalEmerald Publishing LimitedStrategic Outsourcing: An International JournalStrategic Outsourcing: An International Journalhttps://www.emerald.com/insight/proxy/containerImg?link=/resource/publication/journal/98d0360b392de5f1d53acdd6489b6e88/UNKNOWNhttps://www.emerald.com/insight/publication/issn/1753-8297/vol/9/iss/3?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestServitization in contract manufacturing – evidence from Polar business caseshttps://www.emerald.com/insight/content/doi/10.1108/SO-04-2016-0014/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis 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. 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. 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. 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. 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.Servitization in contract manufacturing – evidence from Polar business cases
Esa Viitamo, Seppo Luoto, Timo Seppälä
Strategic Outsourcing: An International Journal, Vol. 9, No. 3, pp.246-270

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.

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.

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.

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.

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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Servitization in contract manufacturing – evidence from Polar business cases10.1108/SO-04-2016-0014Strategic Outsourcing: An International Journal2016-11-21© 2016 Emerald Group Publishing LimitedEsa ViitamoSeppo LuotoTimo SeppäläStrategic Outsourcing: An International Journal932016-11-2110.1108/SO-04-2016-0014https://www.emerald.com/insight/content/doi/10.1108/SO-04-2016-0014/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2016 Emerald Group Publishing Limited
ISO 37500 – Comparing outsourcing life-cycle modelshttps://www.emerald.com/insight/content/doi/10.1108/SO-04-2016-0013/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to illustrate the value of the outsourcing life cycle, as described in several industry models, including ISO 37500. The authors present a comparison of outsourcing life cycles to provide an overview of current practices in the global outsourcing industry. Several outsourcing life cycles have been defined by industry associations such as the International Association of Outsourcing Professionals (IAOP) and the National Outsourcing Association (NOA). Academic research has created several outsourcing life cycles, notably the model from the London School of Economics (Cullen and Willcocks, 2005). Finally, commercial models have been defined, for example the Vendor and Sourcing Management model from IDC (2014). Researchers will find the overview of different life cycles useful in assessing maturity of outsourcing organizations. Practitioners will find the detailed description of ISO 37500 and the comparative life cycles to be illustrative of different approaches to managing outsourcing transactions. Both buyers and providers will be able to compare their own life cycle to industry standards. Little or no research has been conducted on how outsourcing life cycles contribute to effective outsourcing. This paper provides a foundation for such research.ISO 37500 – Comparing outsourcing life-cycle models
Ron Babin, Adrian Quayle
Strategic Outsourcing: An International Journal, Vol. 9, No. 3, pp.271-286

This paper aims to illustrate the value of the outsourcing life cycle, as described in several industry models, including ISO 37500.

The authors present a comparison of outsourcing life cycles to provide an overview of current practices in the global outsourcing industry.

Several outsourcing life cycles have been defined by industry associations such as the International Association of Outsourcing Professionals (IAOP) and the National Outsourcing Association (NOA). Academic research has created several outsourcing life cycles, notably the model from the London School of Economics (Cullen and Willcocks, 2005). Finally, commercial models have been defined, for example the Vendor and Sourcing Management model from IDC (2014).

Researchers will find the overview of different life cycles useful in assessing maturity of outsourcing organizations.

Practitioners will find the detailed description of ISO 37500 and the comparative life cycles to be illustrative of different approaches to managing outsourcing transactions. Both buyers and providers will be able to compare their own life cycle to industry standards.

Little or no research has been conducted on how outsourcing life cycles contribute to effective outsourcing. This paper provides a foundation for such research.

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ISO 37500 – Comparing outsourcing life-cycle models10.1108/SO-04-2016-0013Strategic Outsourcing: An International Journal2016-11-21© 2016 Emerald Group Publishing LimitedRon BabinAdrian QuayleStrategic Outsourcing: An International Journal932016-11-2110.1108/SO-04-2016-0013https://www.emerald.com/insight/content/doi/10.1108/SO-04-2016-0013/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2016 Emerald Group Publishing Limited
Local industry technological capability development using outsourcing opportunitieshttps://www.emerald.com/insight/content/doi/10.1108/SO-02-2016-0005/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestTechnological outsourcing requires possessing the technological capability level by enterprises taking the outsourced activity and further mandates build-up capabilities. Small and medium enterprises (SMEs) in developing nations such as Ethiopia are usually equipped with low level of technological capability and could benefit from government-supported or government-initiated outsourcing networks. The current study aims to preliminarily assess performance of outsourcing initiative taken by the Hibret Manufacturing and Machine Building Industry, a subsidiary of a national corporation, in developing technological capability of SMEs in Ethiopia. The study used a qualitative research approach through interviews with the parent company officials and owners of SMEs and site visit to these SMEs. Findings are organized in a way to draw lessons to be learned from technological outsourcing examined. Technological learning, acquisition of new technologies, market access and process innovation are few capabilities achieved by the involved SMEs. To facilitate and harness these opportunities and further assist in policy ratification, a conceptual framework has been presented and elaborated. Further investigation into outsourcing procedure and biases are expected to shed further light onto the outsourcing initiative by the parent company. This study drew results from investigation of the SMEs involved. Additional investigation of other SMEs is expected to reveal additional insights. There is a dearth of literature focusing on exploration of technological outsourcing in low-income developing countries, such as Ethiopia, to build SMEs’ technological capabilities. This research presents insightful contribution to strategic outsourcing to build local technological capability in developing economies.Local industry technological capability development using outsourcing opportunities
Ameha Mulugeta Gewe, Birhanu Beshah Abebe, Daniel Kitaw Azene, Fitsum Getachew Bayu
Strategic Outsourcing: An International Journal, Vol. 9, No. 3, pp.287-302

Technological outsourcing requires possessing the technological capability level by enterprises taking the outsourced activity and further mandates build-up capabilities. Small and medium enterprises (SMEs) in developing nations such as Ethiopia are usually equipped with low level of technological capability and could benefit from government-supported or government-initiated outsourcing networks. The current study aims to preliminarily assess performance of outsourcing initiative taken by the Hibret Manufacturing and Machine Building Industry, a subsidiary of a national corporation, in developing technological capability of SMEs in Ethiopia.

The study used a qualitative research approach through interviews with the parent company officials and owners of SMEs and site visit to these SMEs. Findings are organized in a way to draw lessons to be learned from technological outsourcing examined.

Technological learning, acquisition of new technologies, market access and process innovation are few capabilities achieved by the involved SMEs. To facilitate and harness these opportunities and further assist in policy ratification, a conceptual framework has been presented and elaborated.

Further investigation into outsourcing procedure and biases are expected to shed further light onto the outsourcing initiative by the parent company. This study drew results from investigation of the SMEs involved. Additional investigation of other SMEs is expected to reveal additional insights.

There is a dearth of literature focusing on exploration of technological outsourcing in low-income developing countries, such as Ethiopia, to build SMEs’ technological capabilities. This research presents insightful contribution to strategic outsourcing to build local technological capability in developing economies.

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Local industry technological capability development using outsourcing opportunities10.1108/SO-02-2016-0005Strategic Outsourcing: An International Journal2016-11-21© 2016 Emerald Group Publishing LimitedAmeha Mulugeta GeweBirhanu Beshah AbebeDaniel Kitaw AzeneFitsum Getachew BayuStrategic Outsourcing: An International Journal932016-11-2110.1108/SO-02-2016-0005https://www.emerald.com/insight/content/doi/10.1108/SO-02-2016-0005/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2016 Emerald Group Publishing Limited
An exploratory study on the impact of recruitment process outsourcing on employer branding of an organisationhttps://www.emerald.com/insight/content/doi/10.1108/SO-08-2015-0020/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to focus on “Recruitment Process Outsourcing” (RPO) as a key element of improvement in corporate brand of organisation through using the talent and capabilities of employees. This research explores the linkages and interconnection between the concepts of RPO and its contribution towards the employer branding process. The review of the literature on RPO and employer branding identifies an emergence of conceptual framework based around outsourcing effectiveness and its impact on employer branding. Exploratory research was carried out using case study analysis to give clear and deep understanding of the RPO and its impact on employer branding. This was conducted by using the semi-structured interviews with the HR and marketing managers using the qualitative method. The findings propose a conceptual framework which is representative for the organisations engaged in RPO. The key findings include talented employees’ role in improving the brand image of any organisation; the development of customers’ perceptions through their attitude and behaviours; the reduction in the HR costs through RPO Services, the responsibility of the organisation taken by RPO which provides the chance for HR professionals and top management to focus on core activities; and the organisational care in selection of the RPO service provider as per their criteria. This research has been limited to assessing the impact of RPO on the employer branding of manufacturing organisations purely due to access issues. The research clearly establishes a good link between the operationalisation of RPO and its direct influences on an organisation’s employer branding through its outsourced employees. The research clearly highlights the importance of and the vital role played by the outsourced employees and how they need to be nurtured through a strong corporate culture and make them great brand ambassadors. At the practical level, this study has several managerial implications, as the findings provide a good understanding of the concept of RPO and how it impacts the employer brands of the organisation. The research gives confidence to the HR managers and directors on the importance of outsourced staff members and the need to address the issues concerning the employee branding of an outsourced member of staff. The outcome of the research gives a conceptual model which represents the impact of an outsourced employee on the employer branding process of the organisation. This conceptual model highlights the many different factors that need to be addressed by a HR manager to keep consistency in employee branding of the organisation. The social implications of this research relate to the wellbeing and motivated staff members of an organisation, even though they do not work directly under the brand of the company they serve in. As mentioned in the research findings, the complications of the RPO process usually has drastic and serious impacts on employee attitudes and feelings when it comes to issues like change management, job satisfaction and the sense of belonging to the organisation. By addressing the different factors explored in the conceptual model of this research, an outsourced employee can feel equally motivated and belonging to the organisation they serve in, just as any other permanent member of staff who acts like an ideal brand ambassador for the employer branding of the organisation. This research is original and adds value to the dynamics of RPO processes by exploring the impact of the process on employer branding of the organisation through its brand ambassadors. This research paves way for further research to be carried out within service organisations where employees play a vital role in being the brand ambassadors of their employer brands.An exploratory study on the impact of recruitment process outsourcing on employer branding of an organisation
Hasan Gilani, Shabana Jamshed
Strategic Outsourcing: An International Journal, Vol. 9, No. 3, pp.303-323

This paper aims to focus on “Recruitment Process Outsourcing” (RPO) as a key element of improvement in corporate brand of organisation through using the talent and capabilities of employees. This research explores the linkages and interconnection between the concepts of RPO and its contribution towards the employer branding process. The review of the literature on RPO and employer branding identifies an emergence of conceptual framework based around outsourcing effectiveness and its impact on employer branding.

Exploratory research was carried out using case study analysis to give clear and deep understanding of the RPO and its impact on employer branding. This was conducted by using the semi-structured interviews with the HR and marketing managers using the qualitative method. The findings propose a conceptual framework which is representative for the organisations engaged in RPO.

The key findings include talented employees’ role in improving the brand image of any organisation; the development of customers’ perceptions through their attitude and behaviours; the reduction in the HR costs through RPO Services, the responsibility of the organisation taken by RPO which provides the chance for HR professionals and top management to focus on core activities; and the organisational care in selection of the RPO service provider as per their criteria.

This research has been limited to assessing the impact of RPO on the employer branding of manufacturing organisations purely due to access issues. The research clearly establishes a good link between the operationalisation of RPO and its direct influences on an organisation’s employer branding through its outsourced employees. The research clearly highlights the importance of and the vital role played by the outsourced employees and how they need to be nurtured through a strong corporate culture and make them great brand ambassadors.

At the practical level, this study has several managerial implications, as the findings provide a good understanding of the concept of RPO and how it impacts the employer brands of the organisation. The research gives confidence to the HR managers and directors on the importance of outsourced staff members and the need to address the issues concerning the employee branding of an outsourced member of staff. The outcome of the research gives a conceptual model which represents the impact of an outsourced employee on the employer branding process of the organisation. This conceptual model highlights the many different factors that need to be addressed by a HR manager to keep consistency in employee branding of the organisation.

The social implications of this research relate to the wellbeing and motivated staff members of an organisation, even though they do not work directly under the brand of the company they serve in. As mentioned in the research findings, the complications of the RPO process usually has drastic and serious impacts on employee attitudes and feelings when it comes to issues like change management, job satisfaction and the sense of belonging to the organisation. By addressing the different factors explored in the conceptual model of this research, an outsourced employee can feel equally motivated and belonging to the organisation they serve in, just as any other permanent member of staff who acts like an ideal brand ambassador for the employer branding of the organisation.

This research is original and adds value to the dynamics of RPO processes by exploring the impact of the process on employer branding of the organisation through its brand ambassadors. This research paves way for further research to be carried out within service organisations where employees play a vital role in being the brand ambassadors of their employer brands.

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An exploratory study on the impact of recruitment process outsourcing on employer branding of an organisation10.1108/SO-08-2015-0020Strategic Outsourcing: An International Journal2016-11-21© 2016 Emerald Group Publishing LimitedHasan GilaniShabana JamshedStrategic Outsourcing: An International Journal932016-11-2110.1108/SO-08-2015-0020https://www.emerald.com/insight/content/doi/10.1108/SO-08-2015-0020/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2016 Emerald Group Publishing Limited
Determinants of ICT outsourcing among the locally-owned manufacturers in Malaysiahttps://www.emerald.com/insight/content/doi/10.1108/SO-03-2016-0011/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine the level of information and communication technology (ICT) outsourcing and its determinants in the Malaysian locally owned manufacturing firms. Drawing on the transaction cost theory and the resource-based theory, four determinants – asset specificity, uncertainty, business skills and technical skills – were hypothesized to influence ICT outsourcing. Data were collected using a questionnaire survey from 104 manufacturing firms listed on the Directory of Federation of Malaysian Manufacturers. Data were then analyzed using R package partial least squares path modeling. The study reveals that slightly over two-thirds (68 per cent) of the surveyed manufacturers either fully or partially outsourced their ICT services. Asset specificity and uncertainty are found to be positively related to the level of ICT outsourcing, which contradict the prediction of the transaction cost theory. On the other hand, business skills and technical skills are not significantly related to the level of ICT outsourcing, which also conflict the resource-based arguments. The small sample size would not be able to make meaningful conclusion for the population; the small R2 value indicates that other important determinants of ICT outsourcing were not tested in this study, and the transaction cost theory and the resource-based theory do not adequately predict the level of ICT outsourcing in the Malaysian locally owned manufacturers. The study serves as one of the first studies that tested the determinants of ICT outsourcing using the transaction cost theory and the resource-based theory in locally owned manufacturing firms of a developing country.Determinants of ICT outsourcing among the locally-owned manufacturers in Malaysia
Ching Seng Yap, Yet Mee Lim, Farah Waheeda Jalaludin, Teck Heang Lee
Strategic Outsourcing: An International Journal, Vol. 9, No. 3, pp.324-342

This paper aims to examine the level of information and communication technology (ICT) outsourcing and its determinants in the Malaysian locally owned manufacturing firms. Drawing on the transaction cost theory and the resource-based theory, four determinants – asset specificity, uncertainty, business skills and technical skills – were hypothesized to influence ICT outsourcing.

Data were collected using a questionnaire survey from 104 manufacturing firms listed on the Directory of Federation of Malaysian Manufacturers. Data were then analyzed using R package partial least squares path modeling.

The study reveals that slightly over two-thirds (68 per cent) of the surveyed manufacturers either fully or partially outsourced their ICT services. Asset specificity and uncertainty are found to be positively related to the level of ICT outsourcing, which contradict the prediction of the transaction cost theory. On the other hand, business skills and technical skills are not significantly related to the level of ICT outsourcing, which also conflict the resource-based arguments.

The small sample size would not be able to make meaningful conclusion for the population; the small R2 value indicates that other important determinants of ICT outsourcing were not tested in this study, and the transaction cost theory and the resource-based theory do not adequately predict the level of ICT outsourcing in the Malaysian locally owned manufacturers.

The study serves as one of the first studies that tested the determinants of ICT outsourcing using the transaction cost theory and the resource-based theory in locally owned manufacturing firms of a developing country.

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Determinants of ICT outsourcing among the locally-owned manufacturers in Malaysia10.1108/SO-03-2016-0011Strategic Outsourcing: An International Journal2016-11-21© 2016 Emerald Group Publishing LimitedChing Seng YapYet Mee LimFarah Waheeda JalaludinTeck Heang LeeStrategic Outsourcing: An International Journal932016-11-2110.1108/SO-03-2016-0011https://www.emerald.com/insight/content/doi/10.1108/SO-03-2016-0011/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2016 Emerald Group Publishing Limited