Global Sourcing of Advanced Services: A Strategic Management Analysis

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    In this exploratory study we take a strategic management approach to global sourcing of advanced services. We discuss in which ways conventional sourcing differs from strategic sourcing and what impels firms to aim for the latter (or, prevent them from doing so). Potentially, strategic global sourcing of services has high returns, but is also associated with high risks and needs for organizational changes. Strategic global sourcing may therefore be outside firms’ “comfort zone” – a composite of organizational knowledge transferability, structural inertia, managers’ risk preferences, and – most interesting in a strategic management perspective ‐ their ability to mitigate risks of strategic global sourcing. One important risk reducing measure is internalization of (out)sourced service activities. Many firms instigate global sourcing via conventional offshore outsourcing. However, as the human asset specificity of the outsourcing operation increases, firms are pulled out of their comfort zones and a desire for internalization arises. An illustrative company case gives suggestions as to how, in practice, internalization may be accomplished without losing valuable human assets held by the local service providers.
    Antal sider32
    StatusUdgivet - 2011
    BegivenhedThe 27th EGOS Colloquium 2011 - Göteborg , Sverige
    Varighed: 6 jun. 20119 jun. 2011
    Konferencens nummer: 27


    KonferenceThe 27th EGOS Colloquium 2011
    AndetHosted by the School of Business, Economics and Law,<br/>University of Gothenburg


    • Global sourcing
    • Services
    • Strategic management
    • Comfort zone
    • Internalization