Rethinking Outsourcing in Manufacturing : a tale of two telecom firms
By: BERGGREN, Christian; BENGTOSSON, Lars.
Material type: ArticlePublisher: Oxford : Elsevier, April 2004European Management Journal 22, 2, p. 211-223Abstract: Since the early 1990s outsourcing has been a major industrial trend. In the literature the economic advantages of outsourcing are often taken for granted. This article aims to take a detailed look at actual outcomes in terms of costs and competences. The focus in on outsourcing of manufacturing in the telecom equipment industry. The article builds on a comparative study of two leading firms, Ericsson (global leader in digital networls) and Nokia (world leader in cellular phone). The comparison reveals strikingly different strategies for production and outsourcing, qhich lends support for a critical rethinking of general outsourcing trendsSince the early 1990s outsourcing has been a major industrial trend. In the literature the economic advantages of outsourcing are often taken for granted. This article aims to take a detailed look at actual outcomes in terms of costs and competences. The focus in on outsourcing of manufacturing in the telecom equipment industry. The article builds on a comparative study of two leading firms, Ericsson (global leader in digital networls) and Nokia (world leader in cellular phone). The comparison reveals strikingly different strategies for production and outsourcing, qhich lends support for a critical rethinking of general outsourcing trends
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