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Rethinking Outsourcing in Manufacturing:: A Tale of Two Telecom Firms

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  • Berggren, Christian
  • Bengtsson, Lars

Abstract

Since the early 1990s outsourcing has been a major industrial trend. In the literature the economic advantages of outsourcing are often taken for granted. This article aims to take a detailed look at actual outcomes in terms of costs and competences. The focus is on outsourcing of manufacturing in the telecom equipment industry. The article builds on a comparative study of two leading firms, Ericsson (global leader in digital networks) and Nokia (world leader in cellular phone). The comparison reveals strikingly different strategies for production and outsourcing, which lends support for a critical rethinking of general outsourcing trends.

Suggested Citation

  • Berggren, Christian & Bengtsson, Lars, 2004. "Rethinking Outsourcing in Manufacturing:: A Tale of Two Telecom Firms," European Management Journal, Elsevier, vol. 22(2), pages 211-223, April.
    • Handle: RePEc:eee:eurman:v:22:y:2004:i:2:p:211-223
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    Citations

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    Cited by:

    1. Roger Strange, 2011. "The outsourcing of primary activities: theoretical analysis and propositions," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(2), pages 249-269, May.
    2. Mazzola, Erica & Bruccoleri, Manfredi & Perrone, Giovanni, 2019. "The curvilinear effect of manufacturing outsourcing and captive-offshoring on firms' innovation: The role of temporal endurance," International Journal of Production Economics, Elsevier, vol. 211(C), pages 197-210.
    3. Zaryab Sheikh & Shafaq Rana, 2014. "The Role of Logistics Service Providers in Supply Chain Performance Management: A comprehensive Literature Review," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(5), pages 608-613, May.
    4. Rafael Pardo & Ruth Rama, 2013. "Is the Pro-Network Bias Justified?," SAGE Open, , vol. 3(3), pages 21582440134, July.
    5. Valeria Gheorghiu, 2012. "Ways To Reduce Undeclared Work," Perspectives of Law and Public Administration, Societatea de Stiinte Juridice si Administrative (Society of Juridical and Administrative Sciences), vol. 1(1), pages 202-208, December.
    6. Lars Bengtsson & Mandar Dabhilkar, 2009. "Manufacturing outsourcing and its effect on plant performance—lessons for KIBS outsourcing," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 231-257, April.
    7. Salanta Irina & Ilies Liviu & Muresan Ioana, 2012. "An Empirical Study On The Benefits And The Risks Of Outsourcing Logistics In The Romanian Industry," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1066-1071, July.

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