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Outsourcing to a non-developed supplier market: The importance of operational aspects in outsourcing
Authors:Jakob Rehme  Daniel Nordigården  Staffan Brege  Daniel Chicksand
Affiliation:1. Department of Management and Engineering, Linköping University, SE-58183 Linköping, Sweden;2. Operations Management Group, Warwick Business School, Warwick University, United Kingdom;1. Department of Information Systems and Computing, Brunel University, West London, UK;2. School of Management, Royal Holloway, University of London, Egham, UK;3. Department of Management, School of Economics and Management, Xidian University, Xian City, Shaanxi, China;4. Department of Management, Information Systems and Innovation Group, London School of Economics and Political Science, London, UK;1. Shanghai Key Laboratory of Intelligent Information Processing, School of Computer Science, Fudan University, Shanghai 200433, China;2. Department of Computer Science, University of Chicago, Chicago, IL 60637, USA;3. School of Mathematical Science, Fudan University, Shanghai 200433, China;1. Indian Institute of Management Udaipur, Udaipur 313 001, India;2. Indian Institute of Management Bangalore, Bangalore 560 076, India
Abstract:This article investigates how firms manage outsourcing in situations of a non-developed supplier market. This study followed the initial outsourcing activities and strategies of two case companies in the wood product manufacturing industry. The findings show that greater focus needs to be placed on operational aspects associated with non-developed supplier markets, which contrasts with the traditional strategic view of outsourcing. For practitioners, this article suggests that it is important to emphasise that the learning curve for a supplier can be lengthy, and also that alternative outsourcing routes are available when outsourcing to a non-developed supplier market.
Keywords:Outsourcing  Supplier market  Operational aspects  Case study  Wood products
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