IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2019i1p155-d301390.html
   My bibliography  Save this article

Dynamic Outsourcing Development for Sustainable Competitive Advantage in a High-Tech Backend Semiconductor Equipment Firm

Author

Listed:
  • Hyun-Joon Jo

    (Seoul Business School, aSSIST, Seoul 03767, Korea
    Business School Lausanne (BSL), CH-1022 Chavannes (VD), CH-1022 Chavannes, Switzerland)

  • Timothy Connerton

    (Business School Lausanne (BSL), CH-1022 Chavannes (VD), CH-1022 Chavannes, Switzerland)

  • Hyun-Jung Kim

    (Seoul Business School, aSSIST, Seoul 03767, Korea)

Abstract

In a high-tech backend semiconductor business where a market environment changes sharply and requires competitiveness of high technology, one of the most important criteria is to establish an optimal strategy for outsourcing development so a firm can achieve a sustainable competitive advantage. Many studies have investigated sustainable and successful strategies for the selection and management of outsourcing suppliers, whereas, this study focuses mainly on analyzing the most affecting factor for outsourcing development in the perspective of dynamic capability by using the Delphi Analytic Hierarchy Process (AHP) method. For the analysis of affecting factors, 4 dimensions are defined: technology, organization, environment, and process. The research result shows that the sustainability of the productive skill in the technology dimension is adopted as the most affecting factor for outsourcing development among the defined 4 dimensions of an outsourcing supplier’s capability. With this research, a high-tech firm can measure the level of each dimension and each factor in developing outsourcing service providers. Then the firm can develop an appropriate outsourcing provider who contributes to the firm’s sustainable competitive advantage. This study also provides a practical and strategic framework of a high-tech firm’s outsourcing development in variable market situations and changeable conditions of transaction.

Suggested Citation

  • Hyun-Joon Jo & Timothy Connerton & Hyun-Jung Kim, 2019. "Dynamic Outsourcing Development for Sustainable Competitive Advantage in a High-Tech Backend Semiconductor Equipment Firm," Sustainability, MDPI, vol. 12(1), pages 1-13, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2019:i:1:p:155-:d:301390
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/1/155/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/1/155/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lizhong Tong & Zhongmin Pu & Jizheng Ma, 2019. "Maintenance Supplier Evaluation and Selection for Safe and Sustainable Production in the Chemical Industry: A Case Study," Sustainability, MDPI, vol. 11(6), pages 1-15, March.
    2. García-Vega, María & Huergo, Elena, 2019. "The role of international and domestic R&D outsourcing for firm innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 775-792.
    3. Kabiraj, Tarun & Sinha, Uday Bhanu, 2016. "Strategic outsourcing with technology transfer under price competition," International Review of Economics & Finance, Elsevier, vol. 44(C), pages 281-290.
    4. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    5. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    6. Ka Leung Lok & Alex Opoku & David Baldry, 2018. "Design of Sustainable Outsourcing Services for Facilities Management: Critical Success Factors," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    7. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    8. Yucai Wu & Jiguang Wang & Changhong Li & Kan Su, 2018. "Optimal Supply Chain Structural Choice under Horizontal Chain-to-Chain Competition," Sustainability, MDPI, vol. 10(5), pages 1-16, April.
    9. Erin Anderson & David C. Schmittlein, 1984. "Integration of the Sales Force: An Empirical Examination," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 385-395, Autumn.
    10. Pournader, Mehrdokht & Kach, Andrew & Fahimnia, Behnam & Sarkis, Joseph, 2019. "Outsourcing performance quality assessment using data envelopment analytics," International Journal of Production Economics, Elsevier, vol. 207(C), pages 173-182.
    11. Benaroch, Michel & Webster, Scott & Kazaz, Burak, 2012. "Impact of sourcing flexibility on the outsourcing of services under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 219(2), pages 272-283.
    12. Byungjoo Paek & Joohyun Kim & Joonyoung Park & Heesang Lee, 2019. "Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms," Sustainability, MDPI, vol. 11(17), pages 1-28, August.
    13. Rowe, Gene & Wright, George, 1999. "The Delphi technique as a forecasting tool: issues and analysis," International Journal of Forecasting, Elsevier, vol. 15(4), pages 353-375, October.
    14. Sarah Feron & Raúl R. Cordero, 2018. "Is Peru Prepared for Large-Scale Sustainable Rural Electrification?," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    15. Hsun Chuan Cho & Ying Jiun Hsieh & Lan Ying Huang, 2018. "Capturing the Risk-Pooling Effect through Inventory Planning and Demand Switching," Sustainability, MDPI, vol. 10(11), pages 1-14, November.
    16. Yang, Qian & Zhao, Xiande, 2016. "Are logistics outsourcing partners more integrated in a more volatile environment?," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 211-220.
    17. Insung Son & Sihyun Kim, 2018. "Does Partner Volatility Have Firm Value Relevance? An Empirical Analysis of Part Suppliers," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    18. Franco Maria Battagello & Livio Cricelli & Michele Grimaldi, 2019. "Prioritization of Strategic Intangible Assets in Make/Buy Decisions," Sustainability, MDPI, vol. 11(5), pages 1-25, February.
    19. Foss, Nicolai J., 1998. "The resource-based perspective: An assessment and diagnosis of problems," Scandinavian Journal of Management, Elsevier, vol. 14(3), pages 133-149, March.
    20. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    21. Wei Yan & Hengyu Li & Junwu Chai & Zhifeng Qian & Hong Chen, 2018. "Owning or Outsourcing? Strategic Choice on Take-Back Operations for Third-Party Remanufacturing," Sustainability, MDPI, vol. 10(1), pages 1-18, January.
    22. Qiangqiang Zhang & Beibei Yan & Xuexi Huo, 2018. "What Are the Effects of Participation in Production Outsourcing? Evidence from Chinese Apple Farmers," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    23. Michela Pellicelli, 2018. "Gaining Flexibility and Innovation through Offshore Outsourcing," Sustainability, MDPI, vol. 10(5), pages 1-12, May.
    24. Gao, Yongling & Driouchi, Tarik, 2018. "Accounting for ambiguity and trust in partial outsourcing: A behavioral real options perspective," Journal of Business Research, Elsevier, vol. 92(C), pages 93-104.
    25. Fabio De Felice & Antonella Petrillo & Claudio Autorino, 2015. "Development of a Framework for Sustainable Outsourcing: Analytic Balanced Scorecard Method (A-BSC)," Sustainability, MDPI, vol. 7(7), pages 1-21, June.
    26. Minja Bolesnikov & Milica Popović Stijačić & Mladen Radišić & Aleksandar Takači & Jelena Borocki & Dragana Bolesnikov & Paula Bajdor & Joanna Dzieńdziora, 2019. "Development of a Business Model by Introducing Sustainable and Tailor-Made Value Proposition for SME Clients," Sustainability, MDPI, vol. 11(4), pages 1-16, February.
    27. Brian S. Silverman, 1999. "Technological Resources and the Direction of Corporate Diversification: Toward an Integration of the Resource-Based View and Transaction Cost Economics," Management Science, INFORMS, vol. 45(8), pages 1109-1124, August.
    28. Malgorzata Pankowska, 2019. "Information Technology Outsourcing Chain: Literature Review and Implications for Development of Distributed Coordination," Sustainability, MDPI, vol. 11(5), pages 1-28, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Byungjoo Paek & Joohyun Kim & Joonyoung Park & Heesang Lee, 2019. "Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms," Sustainability, MDPI, vol. 11(17), pages 1-28, August.
    2. Laurence Capron & Will Mitchell, 2009. "Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal," Organization Science, INFORMS, vol. 20(2), pages 294-312, April.
    3. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.
    4. Giovanni. Gavetti & Daniel A. Levinthal, 2004. "50th Anniversay Article: The Strategy Field from the Perspective of Management Science: Divergent Strands and Possible Integration," Management Science, INFORMS, vol. 50(10), pages 1309-1318, October.
    5. César Camisón-Zornoza & Beatriz Forés-Julián & Alba Puig-Denia & Sergio Camisón-Haba, 0. "Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-34.
    6. Jason Li-Ying & Yuandi Wang & Lutao Ning, 2016. "How do dynamic capabilities transform external technologies into firms’ renewed technological resources? – A mediation model," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1009-1036, December.
    7. Filipe J. Sousa & Luis M. de Castro, 2004. "The strategic relevance of business relationships: a preliminary assessment," FEP Working Papers 163, Universidade do Porto, Faculdade de Economia do Porto.
    8. Mohamed Mansouri & Cheklekbire Malainine & Hayat Souti & Ikram Cadimi, 2022. "Dynamic capabilities, competitiveness and performance of small and medium-sized enterprises: a systematic literature review [Capacités dynamiques, compétitivité et performance des petites et moyenn," Post-Print hal-03794567, HAL.
    9. Sharma, Sunil, 2015. "Relevance of Resource Based View Themes for Capability Evolution," IIMA Working Papers WP2015-03-30, Indian Institute of Management Ahmedabad, Research and Publication Department.
    10. Byungjoo Paek & Heesang Lee, 2018. "Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 883-925, December.
    11. César Camisón-Zornoza & Beatriz Forés-Julián & Alba Puig-Denia & Sergio Camisón-Haba, 2020. "Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1393-1426, December.
    12. Lucía Muñoz-Pascual & Jesús Galende & Carla Curado, 2021. "Contributions to Sustainability in SMEs: Human Resources, Sustainable Product Innovation Performance and the Mediating Role of Employee Creativity," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    13. Tobias Knabke & Sebastian Olbrich, 2018. "Building novel capabilities to enable business intelligence agility: results from a quantitative study," Information Systems and e-Business Management, Springer, vol. 16(3), pages 493-546, August.
    14. Anil K. Gupta & Paul E. Tesluk & M. Susan Taylor, 2007. "Innovation At and Across Multiple Levels of Analysis," Organization Science, INFORMS, vol. 18(6), pages 885-897, December.
    15. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    16. von den Driesch, Till & Eva Susanne da Costa, Maika & Christina Flatten, Tessa & Brettel, Malte, 2015. "How CEO experience, personality, and network affect firms' dynamic capabilities," European Management Journal, Elsevier, vol. 33(4), pages 245-256.
    17. Emanuela Todeva & Ruslan Rakhmatullin, 2016. "Industry Global Value Chains, Connectivity and Regional Smart Specialisation in Europe. An Overview of Theoretical Approaches and Mapping Methodologies," JRC Research Reports JRC102801, Joint Research Centre.
    18. Quan Anh Nguyen & Gillian Sullivan Mort, 0. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    19. C. Lakshman & Sangeetha Lakshman & Kubilay Gok, 2023. "Managers’ knowledge and customer-focused knowledge management as dynamic capabilities: implications for innovation performance," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 246-274, February.
    20. Amandine Maus & Sylvie Sammut, 2018. "Business model innovation in incubators: the role played by dynamic capabilities theory," Post-Print hal-02466175, HAL.

    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:gam:jsusta:v:12:y:2019:i:1:p:155-:d:301390. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.