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The integrator's new advantage - The reassessment of outsourcing and production competence in a global telecom firm

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  • Bengtsson, Lars
  • Berggren, Christian

Abstract

Summary For a long time, the telecom equipment industry has been at the forefront of outsourcing and relocating production operations to contract manufacturing firms located in Asia and Eastern Europe. Recently, however, leading firms have begun to revise this strategy, based on their recognition of the continual importance of technological leadership and integration capabilities. Using a case study of a key company, this paper explores the dynamics of outsourcing and production strategies in the telecom equipment industry. One of the central aspects under study is the interaction of product development with industrialisation and production. The paper analyses issues such as component standardisation versus differentiation and technological integration, the value of deep integration capabilities for cost reductions, and why production competence and the rapid industrialisation of products incorporating new technologies have acquired renewed importance, despite the global trend towards lowest-cost locations.

Suggested Citation

  • Bengtsson, Lars & Berggren, Christian, 2008. "The integrator's new advantage - The reassessment of outsourcing and production competence in a global telecom firm," European Management Journal, Elsevier, vol. 26(5), pages 314-324, October.
    • Handle: RePEc:eee:eurman:v:26:y:2008:i:5:p:314-324
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    Citations

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    Cited by:

    1. Likitwongkajon, Napaporn & Vithessonthi, Chaiporn, 2021. "The short- and long-run effects of foreign investments on firm performance: Evidence from Asia Pacific," International Review of Economics & Finance, Elsevier, vol. 75(C), pages 366-385.
    2. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    3. Law, Florence, 2018. "Breaking the outsourcing path: Backsourcing process and outsourcing lock-in," European Management Journal, Elsevier, vol. 36(3), pages 341-352.

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