Deployment of vendor capabilities and competences throughout the outsourcing process

Publication: Research - peer-reviewJournal article – Annual report year: 2012

Standard

Deployment of vendor capabilities and competences throughout the outsourcing process. / Perunovic, Zoran; Christoffersen, Mads; Mefford, Robert N.

In: International Journal of Operations and Production Management, Vol. 32, No. 3, 2012, p. 351-374.

Publication: Research - peer-reviewJournal article – Annual report year: 2012

Harvard

APA

CBE

MLA

Vancouver

Author

Perunovic, Zoran; Christoffersen, Mads; Mefford, Robert N. / Deployment of vendor capabilities and competences throughout the outsourcing process.

In: International Journal of Operations and Production Management, Vol. 32, No. 3, 2012, p. 351-374.

Publication: Research - peer-reviewJournal article – Annual report year: 2012

Bibtex

@article{289203b1d8d54b538fd1f93054fdfdab,
title = "Deployment of vendor capabilities and competences throughout the outsourcing process",
keywords = "Electronics industry, Manufacturing industries, Outsourcing, Vendor relations, Outsourcing process, Vendor’s perspective, Competences, Capabilities, Contract electronics manufacturing, Relationship management",
publisher = "Emerald Group Publishing Ltd.",
author = "Zoran Perunovic and Mads Christoffersen and Mefford, {Robert N.}",
year = "2012",
doi = "10.1108/01443571211212619",
volume = "32",
number = "3",
pages = "351--374",
journal = "International Journal of Operations and Production Management",
issn = "0144-3577",

}

RIS

TY - JOUR

T1 - Deployment of vendor capabilities and competences throughout the outsourcing process

A1 - Perunovic,Zoran

A1 - Christoffersen,Mads

A1 - Mefford,Robert N.

AU - Perunovic,Zoran

AU - Christoffersen,Mads

AU - Mefford,Robert N.

PB - Emerald Group Publishing Ltd.

PY - 2012

Y1 - 2012

N2 - Purpose - A vendor's capabilities are recognized as one of the most important factors for success in outsourcing. However, there is a lack of understanding of how vendors manage their capabilities throughout the outsourcing process. With an aim to contribute to filling this existing gap, the purpose of this paper is to explore how vendors deploy their capabilities in order to win, run and renew the outsourcing contracts. <br/>Design/methodology/approach - The research question has been derived by integrating a resource-based view theory with a model of a vendor's process in outsourcing. A multiple-case study of three contract electronic manufacturers has been employed to explore the research question. <br/>Findings - The results show that for achieving their outsourcing objectives, vendors use different capability mixes: the winning, the running, and the renewing. These mixes are created through utilization of different portfolios of competences (balanced, unit-dominant, and versatile) and capabilities (permanent and temporary) which need to be deployed in the right combination (deployment strategy) adequate for the stage of the industry dynamics in which vendors operate. The research also indicated the importance of the relationship management capability for the success of outsourcing arrangements in the electronic manufacturing service (EMS) provision industry. <br/>Research limitations/implications - New research involving more case companies would improve the validity of the conclusions made in this paper. Results also suggest that more research into relationship management capability in the context of the EMS industry will be a fruitful area for future studies. <br/>Practical implications - Vendors who seek to advance in the industry's value chain need to expand their portfolio of competences and adapt their deployment strategies to new, more dynamic and volatile environments. The paper proposes three different deployment strategies for three different operational contexts. <br/>Originality/value - In contrast with the existing static approach towards studying vendor's capabilities in outsourcing, the paper's findings show that vendors use different mixes of capabilities throughout the outsourcing process. The authors have been able to show how those capability mixes are formed. In addition, it was found that relationship management is an important capability for consideration when studying and practicing manufacturing outsourcing.

AB - Purpose - A vendor's capabilities are recognized as one of the most important factors for success in outsourcing. However, there is a lack of understanding of how vendors manage their capabilities throughout the outsourcing process. With an aim to contribute to filling this existing gap, the purpose of this paper is to explore how vendors deploy their capabilities in order to win, run and renew the outsourcing contracts. <br/>Design/methodology/approach - The research question has been derived by integrating a resource-based view theory with a model of a vendor's process in outsourcing. A multiple-case study of three contract electronic manufacturers has been employed to explore the research question. <br/>Findings - The results show that for achieving their outsourcing objectives, vendors use different capability mixes: the winning, the running, and the renewing. These mixes are created through utilization of different portfolios of competences (balanced, unit-dominant, and versatile) and capabilities (permanent and temporary) which need to be deployed in the right combination (deployment strategy) adequate for the stage of the industry dynamics in which vendors operate. The research also indicated the importance of the relationship management capability for the success of outsourcing arrangements in the electronic manufacturing service (EMS) provision industry. <br/>Research limitations/implications - New research involving more case companies would improve the validity of the conclusions made in this paper. Results also suggest that more research into relationship management capability in the context of the EMS industry will be a fruitful area for future studies. <br/>Practical implications - Vendors who seek to advance in the industry's value chain need to expand their portfolio of competences and adapt their deployment strategies to new, more dynamic and volatile environments. The paper proposes three different deployment strategies for three different operational contexts. <br/>Originality/value - In contrast with the existing static approach towards studying vendor's capabilities in outsourcing, the paper's findings show that vendors use different mixes of capabilities throughout the outsourcing process. The authors have been able to show how those capability mixes are formed. In addition, it was found that relationship management is an important capability for consideration when studying and practicing manufacturing outsourcing.

KW - Electronics industry

KW - Manufacturing industries

KW - Outsourcing

KW - Vendor relations

KW - Outsourcing process

KW - Vendor’s perspective

KW - Competences

KW - Capabilities

KW - Contract electronics manufacturing

KW - Relationship management

U2 - 10.1108/01443571211212619

DO - 10.1108/01443571211212619

JO - International Journal of Operations and Production Management

JF - International Journal of Operations and Production Management

SN - 0144-3577

IS - 3

VL - 32

SP - 351

EP - 374

ER -