Challenges in Accounting for Cost Based Outsourcing: Evidence from a Manufacturing Firm

Ivar Friis; Kim Sundtoft Hald; Sof Thrane

Challenges in Accounting for Cost Based Outsourcing: Evidence from a Manufacturing Firm

Ivar Friis, Kim Sundtoft Hald, Sof Thrane

Department of Operations Management

Research output: Contribution to conference › Paper › Research › peer-review

Abstract

The purpose of this paper is to develop a model of challenges in cost-based outsourcing decisions when firms compare internal manufacturing costs and supplier prices. The research applies a case study design to explore a firm's challenges with finding reliable external and internal cost figures that can enable them to increase the quality of their outsourcing. Based on a literature review we specify four cost calculation challenges and investigate how these challenges unfold in our case firm. We illustrate how these challenges are more deeply integrated in the organisational context than assumed in extant research.

Original language	English
Publication date	2021
Number of pages	10
Publication status	Published - 2021
Event	The 28th International Annual EurOMA Conference 2021: Managing the “New Normal”: The Future of Operations and Supply Chain Management in Unprecedented Times - Online, WWW Duration: 1 Jul 2021 → 7 Jul 2021 Conference number: 28 https://www.euroma21.org/

Conference

Conference	The 28th International Annual EurOMA Conference 2021
Number	28
Location	Online
Country/Territory	WWW
Period	01/07/2021 → 07/07/2021
Internet address	https://www.euroma21.org/

Keywords

Outsourcing
Manufacturing costs
Make-or-buy decisions

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Persistent link

Cite this

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abstract = "The purpose of this paper is to develop a model of challenges in cost-based outsourcing decisions when firms compare internal manufacturing costs and supplier prices. The research applies a case study design to explore a firm's challenges with finding reliable external and internal cost figures that can enable them to increase the quality of their outsourcing. Based on a literature review we specify four cost calculation challenges and investigate how these challenges unfold in our case firm. We illustrate how these challenges are more deeply integrated in the organisational context than assumed in extant research.",

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AU - Thrane, Sof

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N2 - The purpose of this paper is to develop a model of challenges in cost-based outsourcing decisions when firms compare internal manufacturing costs and supplier prices. The research applies a case study design to explore a firm's challenges with finding reliable external and internal cost figures that can enable them to increase the quality of their outsourcing. Based on a literature review we specify four cost calculation challenges and investigate how these challenges unfold in our case firm. We illustrate how these challenges are more deeply integrated in the organisational context than assumed in extant research.

AB - The purpose of this paper is to develop a model of challenges in cost-based outsourcing decisions when firms compare internal manufacturing costs and supplier prices. The research applies a case study design to explore a firm's challenges with finding reliable external and internal cost figures that can enable them to increase the quality of their outsourcing. Based on a literature review we specify four cost calculation challenges and investigate how these challenges unfold in our case firm. We illustrate how these challenges are more deeply integrated in the organisational context than assumed in extant research.

KW - Oursourcing

KW - Manufacturing costs

KW - Make-or-buy decisions

KW - Outsourcing

KW - Manufacturing costs

KW - Make-or-buy decisions

M3 - Paper

Y2 - 1 July 2021 through 7 July 2021

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