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Outsourcing and Industrial Decline
Richard A. Bettis, Stephen P. Bradley and Gary Hamel
Vol. 6, No. 1 (Feb., 1992), pp. 7-22
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/4165047
Page Count: 16
You can always find the topics here!Topics: Outsourcing, Business structures, Financial investments, Asians, Brands, Industrial management, Financial management, Technology, Investment strategies, Capital costs
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The improper use of outsourcing is playing an important role in the continuing competitive decline of many Western firms. Western managers often view outsourcing as a defensive operational measure. The approach tends to be incremental. A whole series of incremental outsourcing decisions, taken individually, may make economic sense, but collectively they may also represent the surrender of the business's capability to compete. However, properly understood and managed as an overall part of strategy, outsourcing can aid competitiveness. This article, based on the authors' research with firms in North America, Europe, and Asia, discusses the manner in which the improper use of outsourcing can destroy the future of a business, and how the proper use of outsourcing can help build competitive advantage.
The Executive © 1992 Academy of Management