IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v16y1998i6p635-643.html
   My bibliography  Save this article

The impact of corporate outsourcing on company value

Author

Listed:
  • Bryce, David J.
  • Useem, Michael

Abstract

Companies worldwide are expanding their use of outsourcing for services and products. This article appraises what is known about the impact of outsourcing on company value, and the emergent picture is not an unblemished one. Company managers frequently complain about the downsides, some companies have retrieved what they had sourced out, failures can be seen here and there, and the long-term potential consequences of outsourcing too much are yet to be seen. Still, the weight of the research evidence indicates that, when well designed and well managed, outsourcing reduces operating cost, enhances competitive strategy, and enlarges shareholder value.

Suggested Citation

  • Bryce, David J. & Useem, Michael, 1998. "The impact of corporate outsourcing on company value," European Management Journal, Elsevier, vol. 16(6), pages 635-643, December.
    • Handle: RePEc:eee:eurman:v:16:y:1998:i:6:p:635-643
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237398000401
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mol, Michael J. & Pauwels, Pieter & Matthyssens, Paul & Quintens, Lieven, 2004. "A technological contingency perspective on the depth and scope of international outsourcing," Journal of International Management, Elsevier, vol. 10(2), pages 287-305.
    2. Freytag, Per V. & Clarke, Ann H. & Evald, Majbritt R., 2012. "Reconsidering outsourcing solutions," European Management Journal, Elsevier, vol. 30(2), pages 99-110.
    3. Müller, Hans-Erich, 2009. "Autozulieferer: Partner auch in der Krise? Lieferantenmanagement bei Toyota, General Motors und Volkswagen," EconStor Books, ZBW - Leibniz Information Centre for Economics, volume 127, number 109734.
    4. Steven Globerman & Aidan Vining, 2004. "The Outsourcing Decision: A Strategic Framework," International Trade 0404007, University Library of Munich, Germany.
    5. Barbara Bradaè Hojnik, 2010. "Correlation Between Reasons And Effects Of Outsourcing: Evidence From Slovenian Sme’S," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 313-324, november.
    6. MahmudulHasan Foiji & Md. Anamul Hoque & Muhammad Belal Hossain Khan, 2019. "Strategic Potential of e-HRM in Outsourcing HR Functions," International Journal of Business and Social Research, LAR Center Press, vol. 9(2), pages 1-10, February.
    7. Debarati Ghosh & Meghna Dutta, 2023. "Credit Constraints and Increased Firm-Level Production Fragmentation: Evidence from India," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(1), pages 93-108, January.
    8. Rybak, Aurelia & Rybak, Aleksandra, 2016. "Possible strategies for hard coal mining in Poland as a result of production function analysis," Resources Policy, Elsevier, vol. 50(C), pages 27-33.
    9. Y. Boulaksil & J. C. Fransoo & T. Tan, 2017. "Capacity reservation and utilization for a manufacturer with uncertain capacity and demand," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(3), pages 689-709, July.
    10. Ana Redondo-Cano & M. Canet-Giner, 2010. "Outsourcing agrochemical services: economic or strategic logic?," Service Business, Springer;Pan-Pacific Business Association, vol. 4(3), pages 237-252, December.
    11. MahmudulHasan Foiji & Md. Anamul Hoque & Muhammad Belal Hossain Khan, 2019. "Strategic Potential of e-HRM in Outsourcing HR Functions," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 9(2), pages 1-10, February.
    12. Mukherjee, Debmalya & Gaur, Ajai S. & Datta, Avimanyu, 2013. "Creating value through offshore outsourcing: An integrative framework," Journal of International Management, Elsevier, vol. 19(4), pages 377-389.
    13. Müller, Hans-Erich, 2009. "Autozulieferer: Partner auch in der Krise? Lieferantenmanagement bei Toyota, General Motors und Volkswagen," Study / edition der Hans-Böckler-Stiftung, Hans-Böckler-Stiftung, Düsseldorf, volume 127, number 230, March.
    14. Pei†Cheng Liao & Suresh Radhakrishnan, 2013. "A Commitment†Based Explanation for Outsourcing Multiple Tasks," Contemporary Accounting Research, John Wiley & Sons, vol. 30(3), pages 1063-1081, September.
    15. Sandeep Rustagi & William R. King & Laurie J. Kirsch, 2008. "Predictors of Formal Control Usage in IT Outsourcing Partnerships," Information Systems Research, INFORMS, vol. 19(2), pages 126-143, June.
    16. Gonzalez, Reyes & Gasco, Jose & Llopis, Juan, 2005. "Information systems outsourcing reasons in the largest Spanish firms," International Journal of Information Management, Elsevier, vol. 25(2), pages 117-136.
    17. Raassens, Néomie & Wuyts, Stefan & Geyskens, Inge, 2014. "The performance implications of outsourcing customer support to service providers in emerging versus established economies," International Journal of Research in Marketing, Elsevier, vol. 31(3), pages 280-292.
    18. Kedia, Ben L. & Lahiri, Somnath, 2007. "International outsourcing of services: A partnership model," Journal of International Management, Elsevier, vol. 13(1), pages 22-37, March.
    19. Choi, Jongmoo Jay & Ju, Ming & Trigeorgis, Lenos & Zhang, Xiaotian Tina, 2021. "Outsourcing flexibility under financial constraints," Journal of Corporate Finance, Elsevier, vol. 67(C).
    20. Cooper, Robin & Slagmulder, Regine, 2004. "Interorganizational cost management and relational context," Accounting, Organizations and Society, Elsevier, vol. 29(1), pages 1-26, January.
    21. Hammerling, Jessie HF, 2022. "Financial Drivers of Domestic Outsourcing: Case Study of Food Services in the San Francisco Bay Area," Institute for Research on Labor and Employment, Working Paper Series qt9sz919zw, Institute of Industrial Relations, UC Berkeley.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:16:y:1998:i:6:p:635-643. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.