IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00455163.html
   My bibliography  Save this paper

Strategic Outsourcing through Specifications

Author

Listed:
  • Rajesh Nellore

    (Research & Development & Planning - GM - General Motors Corporation)

  • Klas Soderquist

    (MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management)

Abstract

Outsourcing is one of the top priorities on the strategic agenda of Original Equipment Manufacturers [OEMs] in many industries. The decision of outsourcing an activity as opposed to doing it in-house and the development of a part or parts system is one of the most complex decisions facing today's industrial managers. Several models have been developed in order to aid in this process. The present paper analyses some of these models, and proposes an extension based on the role that specifications might play in outsourcing decisions. Based on how the specification is generated and on the nature of the data it contains, it can be of significant help in outsourcing decisions. The research reported in the paper is based on a longitudinal study of one automotive OEM [global family], one truck OEM and four medium sized expert supplier, all located in Europe. A procurement matrix is developed in which guidance for outsourcing decisions is provided in terms of specification generator, type of supplier, and contract relationship.

Suggested Citation

  • Rajesh Nellore & Klas Soderquist, 2000. "Strategic Outsourcing through Specifications," Post-Print hal-00455163, HAL.
    • Handle: RePEc:hal:journl:hal-00455163
    Note: View the original document on HAL open archive server: http://hal.grenoble-em.com/hal-00455163
    as

    Download full text from publisher

    File URL: http://hal.grenoble-em.com/hal-00455163/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kim B. Clark, 1989. "Project Scope and Project Performance: The Effect of Parts Strategy and Supplier Involvement on Product Development," Management Science, INFORMS, vol. 35(10), pages 1247-1263, October.
    2. Michael A. Cusumano & Akira Takeishi, 1991. "Supplier relations and management: A survey of Japanese, Japanese‐transplant, and U.S. auto plants," Strategic Management Journal, Wiley Blackwell, vol. 12(8), pages 563-588, November.
    3. James Richardson, 1993. "Parallel sourcing and supplier performance in the Japanese automobile industry," Strategic Management Journal, Wiley Blackwell, vol. 14(5), pages 339-350, July.
    4. Bronder, Christoph & Pritzl, Rudolf, 1992. "Developing strategic alliances: A conceptual framework for successful co-operation," European Management Journal, Elsevier, vol. 10(4), pages 412-421, December.
    5. Janice A. Black & Kimberly B. Boal, 1994. "Strategic resources: Traits, configurations and paths to sustainable competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 131-148, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Niu, Baozhuang & Wang, Yulan & Guo, Pengfei, 2015. "Equilibrium pricing sequence in a co-opetitive supply chain with the ODM as a downstream rival of its OEM," Omega, Elsevier, vol. 57(PB), pages 249-270.
    2. McGovern, Tom & Hicks, Christian, 2006. "Specifications and supplier development in the UK electrical transmission and distribution equipment industry," International Journal of Production Economics, Elsevier, vol. 104(1), pages 164-178, November.
    3. Jiang, Bin & Reinhardt, Gilles & Young, Scott T., 2008. "BOCOG's outsourcing contracts: The vendor's perspective," Omega, Elsevier, vol. 36(6), pages 941-949, December.

    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. Nellore, Rajesh & Söderquist, Klas, 2000. "Strategic outsourcing through specifications," Omega, Elsevier, vol. 28(5), pages 525-540, October.
    2. Matsushima, Noriaki & Mizuno, Tomomichi, 2013. "Vertical separation as a defense against strong suppliers," European Journal of Operational Research, Elsevier, vol. 228(1), pages 208-216.
    3. Liker, Jeffrey K. & Kamath, Rajan R. & Nazli Wasti, S. & Nagamachi, Mitsuo, 1996. "Supplier involvement in automotive component design: are there really large US Japan differences?," Research Policy, Elsevier, vol. 25(1), pages 59-89, January.
    4. Kenji Kojima, 2000. "Japanese Supplier Relations: A Comparative Perspective," Kobe Economic & Business Review, Research Institute for Economics & Business Administration, Kobe University, vol. 44, pages 53-76, February.
    5. Li, Hongmin & Wang, Yimin & Yin, Rui & Kull, Thomas J. & Choi, Thomas Y., 2012. "Target pricing: Demand-side versus supply-side approaches," International Journal of Production Economics, Elsevier, vol. 136(1), pages 172-184.
    6. McLaren, John, 1999. "Supplier relations and the market context: A theory of handshakes," Journal of International Economics, Elsevier, vol. 48(1), pages 121-138, June.
    7. Alessandro Lomi & Philippa Pattison, 2006. "Manufacturing Relations: An Empirical Study of the Organization of Production Across Multiple Networks," Organization Science, INFORMS, vol. 17(3), pages 313-332, June.
    8. Markus C. Becker & Francesco Zirpoli, 2003. "Organising new product development Knowledge hollowing-out and knowledge integration," DRUID Working Papers 03-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    9. Morita, Hodaka & Nakahara, Hirohiko, 2004. "Impacts of the information-technology revolution on Japanese manufacturer-supplier relationships," Journal of the Japanese and International Economies, Elsevier, vol. 18(3), pages 390-415, September.
    10. Anderson, Shannon W. & Glenn, David & Sedatole, Karen L., 2000. "Sourcing parts of complex products: evidence on transactions costs, high-powered incentives and ex-post opportunism," Accounting, Organizations and Society, Elsevier, vol. 25(8), pages 723-749, November.
    11. Akira Takeishi, 2002. "Knowledge Partitioning in the Interfirm Division of Labor: The Case of Automotive Product Development," Organization Science, INFORMS, vol. 13(3), pages 321-338, June.
    12. Ying Zhang & Lihua Wang & Jie Gao, 2017. "Supplier collaboration and speed-to-market of new products: the mediating and moderating effects," Journal of Intelligent Manufacturing, Springer, vol. 28(3), pages 805-818, March.
    13. Chung, Seungwha (Andy) & Kim, Gyeong Mook, 2003. "Performance effects of partnership between manufacturers and suppliers for new product development: the supplier's standpoint," Research Policy, Elsevier, vol. 32(4), pages 587-603, April.
    14. Susan Helper, 1997. "Complementarity and Cost Reduction: Evidence from the Auto Supply Industry," NBER Working Papers 6033, National Bureau of Economic Research, Inc.
    15. Kim, Bowon, 2000. "Coordinating an innovation in supply chain management," European Journal of Operational Research, Elsevier, vol. 123(3), pages 568-584, June.
    16. Fujita, Mai, 2013. "The Japanese and Chinese models of industrial organisation : fighting for supremacy in the Vietnamese motorcycle industry," IDE Discussion Papers 420, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    17. Raji Srinivasan & Thomas H. Brush, 2006. "Supplier Performance in Vertical Alliances: The Effects of Self-Enforcing Agreements and Enforceable Contracts," Organization Science, INFORMS, vol. 17(4), pages 436-452, August.
    18. Nassimbeni, Guido, 1996. "Factors underlying operational JIT purchasing practices: Results of an empirical research," International Journal of Production Economics, Elsevier, vol. 42(3), pages 275-288, April.
    19. Karbowski, Adam & Prokop, Jacek, 2019. "The Impact of Vertical R&D Cooperation on Market Performance of Firms," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(4), pages 73-89.
    20. Ito, Keiko, 2004. "Foreign ownership and plant productivity in the Thai automobile industry in 1996 and 1998: a conditional quantile analysis," Journal of Asian Economics, Elsevier, vol. 15(2), pages 321-353, April.

    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:hal:journl:hal-00455163. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.