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Manufacturing outsourcing and its effect on plant performance-lessons for KIBS outsourcing
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Economics and Management (Div.).
2009 (English)In: Journal of evolutionary economics, ISSN 0936-9937, E-ISSN 1432-1386, Vol. 19, no 2, 231-257 p.Article in journal (Refereed) Published
Abstract [en]

Despite the proclaimed advantages and popularity of outsourcing manufacturing and knowledge-intensive business services, there are few and mainly contradictory studies of its short- and long-term effects. The main purpose of this paper is to analyze the way in which outsourcing manufacturing and design work relates to performance at plant level. The study is based on a large-scale survey among a representative sample of Swedish engineering plants. The results show no significant effects from outsourcing manufacturing on plant operating performance. The paper further shows that investments in technological and organizational capabilities explain the improvements of performance to a significantly higher extent than does outsourcing. The problems of additional costs and managing dependencies when applying partial outsourcing and separating interdependent key processes provide important insights to the analysis on the effects of outsourcing knowledge-intensive business services (KIBS).

Place, publisher, year, edition, pages
2009. Vol. 19, no 2, 231-257 p.
Keyword [en]
Outsourcing, Manufacturing, Performance, KIBS
National Category
Other Mechanical Engineering
URN: urn:nbn:se:kth:diva-31251DOI: 10.1007/s00191-008-0129-1ISI: 000263797500005ScopusID: 2-s2.0-61449171136OAI: diva2:405590
QC 20110323 5th European Meeting on Applied Evolutionary Economics, Manchester Metropolitan Univ, Manchester, ENGLAND, MAY 17-19, 2007Available from: 2011-03-23 Created: 2011-03-11 Last updated: 2011-03-23Bibliographically approved

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