Total acquisition cost of overseas outsourcing/sourcing: a framework and a case study

Total acquisition cost of overseas outsourcing/sourcing: a framework and a case study Purpose – The purpose of this paper is to develop a framework of total acquisition cost of overseas outsourcing/sourcing in manufacturing industry. This framework contains categorized cost items that may occur during the overseas outsourcing/sourcing process. The framework was tested by a case study to establish both its feasibility and usability. Design/methodology/approach – First, interviews were carried out with practitioners who have the experience of overseas outsourcing/sourcing in order to obtain inputs from industry. The framework was then built up based on combined inputs from literature and from practitioners. Finally, the framework was tested by a case study in a multinational high‐tech manufacturer to establish both its feasibility and usability. Findings – A practical barrier for implementing this framework is shortage of information. The predictability of the cost items in the framework varies. How to deal with the trade off between accuracy and applicability is a problem needed to be solved in the future research. Originality/value – There are always limitations to the generalizations that can be made from just one case. However, despite these limitations, this case study is believed to have shown the general requirement of modeling the uncertainty and dealing with the dilemma between accuracy and applicability in practice. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Manufacturing Technology Management Emerald Publishing

Total acquisition cost of overseas outsourcing/sourcing: a framework and a case study

Loading next page...
 
/lp/emerald-publishing/total-acquisition-cost-of-overseas-outsourcing-sourcing-a-framework-WECVtorym9
Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
1741-038X
DOI
10.1108/17410380710817291
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to develop a framework of total acquisition cost of overseas outsourcing/sourcing in manufacturing industry. This framework contains categorized cost items that may occur during the overseas outsourcing/sourcing process. The framework was tested by a case study to establish both its feasibility and usability. Design/methodology/approach – First, interviews were carried out with practitioners who have the experience of overseas outsourcing/sourcing in order to obtain inputs from industry. The framework was then built up based on combined inputs from literature and from practitioners. Finally, the framework was tested by a case study in a multinational high‐tech manufacturer to establish both its feasibility and usability. Findings – A practical barrier for implementing this framework is shortage of information. The predictability of the cost items in the framework varies. How to deal with the trade off between accuracy and applicability is a problem needed to be solved in the future research. Originality/value – There are always limitations to the generalizations that can be made from just one case. However, despite these limitations, this case study is believed to have shown the general requirement of modeling the uncertainty and dealing with the dilemma between accuracy and applicability in practice.

Journal

Journal of Manufacturing Technology ManagementEmerald Publishing

Published: Sep 11, 2007

Keywords: Modelling; Outsourcing; Purchasing; Manufacturing systems; Cost effectiveness

References

  • FDI location at the subnational level: a study of EJVs in China
    Chadee, D.D.; Qiu, F.; Rose, E.L.
  • The nature of the firm
    Coase, R.H.
  • The influence of industry structure on the entry mode choice of overseas entrants in manufacturing industries
    Elango, B.; Sambharya, R.B.
  • The use of total cost of ownership concepts to model the outsourcing decision
    Ellram, L.M.; Maltz, A.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off