Contextualisation of the complexity in the selection of developing country outsourcees by developed country outsourcers

Pawar, Kulwant S.; Huq, Fahian Anisul; Khraishi, Ahmad; Shah, Janat

Abstract

© 2018 Informa UK Limited, trading as Taylor & Francis Group. Outsourcing research has recognised that selecting the right offshore supplier (outsourcee) in low-cost distant developing countries is complex, but central to outsourcing success. More specifically, the combination of outsourcee contextual internal factors (e.g. capabilities) with outsourced-to country contextual external factors (e.g. political, legal, economic, socio-cultural) as two fundamental and interconnected decisions firms make when outsourcing remains an underexplored research gap. Therefore, through a rigorous three-tier qualitative approach we, firstly, develop a contextual Environmental Separation Index (ESI) decision tool to help outsourcing firms in making more informed decisions when selecting outsourcees and outsourcing locations. Secondly, we operationalise the ESI as intuitive and easy to use decision tool, yet with a provision to deliver a truly context proof outsourcee selection decision. Thirdly, we adopt a complexity theory lens to explain that narrowing the contextual outsourcer–outsourcee gap facilitates a mind-set shift in outsourcing relationships from hierarchies to networks and from controlling to empowering developing country outsourcees. We show from a complexity theory perspective how contextual separation gaps between developed country outsourcers and developing country outsourcees can be an effective way to grasp the evolutionary path of outsourcing relationships.

Citation

Pawar, K. S., Huq, F. A., Khraishi, A., & Shah, J. (2019). Contextualisation of the complexity in the selection of developing country outsourcees by developed country outsourcers. International Journal of Production Research, 57(13), 4310-4332. https://doi.org/10.1080/00207543.2018.1529444

• Journal Article Type: Article
• Acceptance Date: Sep 18, 2018
• Online Publication Date: Oct 7, 2018
• Publication Date: Jul 3, 2019
• Deposit Date: Dec 17, 2018
• Publicly Available Date: Oct 8, 2019
• Journal: International Journal of Production Research
• Print ISSN: 0020-7543
• Electronic ISSN: 1366-588X
• Publisher: Taylor and Francis
• Peer Reviewed: Peer Reviewed
• Volume: 57
• Issue: 13
• Pages: 4310-4332
• DOI: https://doi.org/10.1080/00207543.2018.1529444
• Keywords: Outsourcing Decisions, Outsourcing Relationships, Supplier Selection, Supply; Chains, Complexity Theory; 2
• Public URL: https://nottingham-repository.worktribe.com/output/1418464
• Publisher URL: https://www.tandfonline.com/doi/full/10.1080/00207543.2018.1529444
• Additional Information: Peer Review Statement: The publishing and review policy for this title is described in its Aims & Scope.; Aim & Scope: http://www.tandfonline.com/action/journalInformation?show=aimsScope&journalCode=tprs20
• Contract Date: Dec 17, 2018