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| Author: | Bengtsson, L. Haartman, R. von Dabhilkar, M. |
| Title: | Low cost versus innovation: Contrasting outsourcing and integration strategies in manufacturing |
| Journal: | Creativity and innovation management
2009 : MAR, VOL. 18:1 p. 35-47 |
| Index terms: | outsourcing manufacturing strategy engineering industry innovation |
| Freeterms: | low-cost performance |
| Language: | eng |
| Abstract: | The article analyzes the effect of two different outsourcing manufacturing strategies on plant performance and innovation capability when taking into account the organizational integration of manufacturing and design, and complexity of products. The two strategies are innovation-oriented outsourcing and low-cost-oriented outsourcing. Empirical data is collected through a survey of 267 engineering firms, of which half have outsourced manufacturing. The findings suggest that the two strategies have different effects, and thus it can be concluded that outsourcing represents a trade-off between lowering costs and improving innovation. |
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