IDEAS home Printed from https://ideas.repec.org/a/ids/ijatma/v9y2009i1p40-53.html
   My bibliography  Save this article

Towards the strategic outsourcing of core competencies in the automotive industry: threat or opportunity?

Author

Listed:
  • Glenn Parry
  • Jens K. Roehrich

Abstract

Faced with shorter product life cycles and increased cost of capital, companies can no longer afford the capital outlay for new facilities, which may become underutilised as processes improve over the first few years of operation. Outsourcing the production capacity can remove this uncertainty. However, fast-moving automotive environment companies, faced with increasingly demanding customers, have to deploy the resources and expertise of the best-in-class provider. To achieve this, they have further reduced their functions to a handful of core activities. Outsourcing core activities can bring about benefits under certain circumstances, but also possesses the risk that companies may become 'hollow', and lack a core deliverable. Within the next couple of years, companies in the automotive sector will further outsource activities in order to free up investment capital. The trends and areas of outsourcing have been explored and a guiding framework has been developed for practitioners.

Suggested Citation

  • Glenn Parry & Jens K. Roehrich, 2009. "Towards the strategic outsourcing of core competencies in the automotive industry: threat or opportunity?," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 9(1), pages 40-53.
    • Handle: RePEc:ids:ijatma:v:9:y:2009:i:1:p:40-53
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=23585
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    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. Hanlin, Rebecca & Hanlin, Christopher, 2012. "The view from below: ‘lock-in’ and local procurement in the African gold mining sector," Resources Policy, Elsevier, vol. 37(4), pages 468-474.

    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:ids:ijatma:v:9:y:2009:i:1:p:40-53. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=2 .

    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.