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Strategic outsourcing practices of multi‐national corporations (MNCs) in China

Strategic outsourcing practices of multi‐national corporations (MNCs) in China Purpose – The purpose of this paper is to present a research model and case illustrations that explore strategic outsourcing practices for sustainable competitive advantages in the Chinese context. Design/methodology/approach – This study is based on in‐depth interviews of executives of three multi‐national firms (MNCs) from Switzerland, Korea and the USA that have been successfully operating in China for more than seven years. Findings – This paper discusses how three MNC firms in China maintain clear and disciplined strategic outsourcing and achieve desired business outcomes. They race to the top by managing strategic insourcing for high risk and high profit items while outsourcing low risk and high profit leveraging items. Originality/value – The paper presents a strategic outsourcing model and case studies of three multi‐national firms in China, which suggest both theoretical and managerial implications showing how to implement successful outsourcing practices in the global market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Outsourcing: An International Journal Emerald Publishing

Strategic outsourcing practices of multi‐national corporations (MNCs) in China

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Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
1753-8297
DOI
10.1108/17538290911005153
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to present a research model and case illustrations that explore strategic outsourcing practices for sustainable competitive advantages in the Chinese context. Design/methodology/approach – This study is based on in‐depth interviews of executives of three multi‐national firms (MNCs) from Switzerland, Korea and the USA that have been successfully operating in China for more than seven years. Findings – This paper discusses how three MNC firms in China maintain clear and disciplined strategic outsourcing and achieve desired business outcomes. They race to the top by managing strategic insourcing for high risk and high profit items while outsourcing low risk and high profit leveraging items. Originality/value – The paper presents a strategic outsourcing model and case studies of three multi‐national firms in China, which suggest both theoretical and managerial implications showing how to implement successful outsourcing practices in the global market.

Journal

Strategic Outsourcing: An International JournalEmerald Publishing

Published: Nov 20, 2009

Keywords: Strategic planning; Outsourcing; China; Multi‐national companies

References