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1 – 10 of 10Bella Belerivana Nujen, Deodat Edward Mwesiumo, Hans Solli-Sæther, Andrea Blindheim Slyngstad and Lise Lillebrygfjeld Halse
The purpose of this study is to delineate key aspects of backshoring readiness and discuss how such aspects contribute to a smooth shift-back from global sourcing operations. It…
Abstract
Purpose
The purpose of this study is to delineate key aspects of backshoring readiness and discuss how such aspects contribute to a smooth shift-back from global sourcing operations. It aims to answer the following questions: which factors constitute backshoring readiness and how these factors affect the backshoring transition.
Design/methodology/approach
Based on theory departure from the organizational readiness field and the emerging field on backshoring, a conceptual model is developed. A multiple qualitative case study is then conducted to exemplify the backshoring readiness factors delineated in the study.
Findings
The study indicates that due to previous outsourcing, limitations concerning the availability of firms’ capabilities are affected by ownership structures and that backshoring appears to be time-sensitive. The study delineates three key aspects of backshoring readiness and proposes a comprehensive understanding of readiness as an important construct to enhance successful backshoring.
Research limitations/implications
The findings are limited by the nature of this conceptual study, the restriction to a high-cost context and the small number of cases. Therefore, conclusions and proposed recommendations need to be further investigated in preferably larger samples of case studies.
Practical implications
By introducing contextual variables that go beyond traditional cost considerations, this work should be of special interest for both practitioners and academics, because the absorptive capacity for the exploitation of cutting-edge knowledge is globally scarce and hence rather expensive in Western countries compared with traditionally low-cost countries. Another practical contribution of this study is the conceptual backshoring readiness framework itself, as it can guide firms acquainting themselves with the resource availability in their home environment.
Originality/value
The research defines key resources needed to facilitate backshoring readiness in a conceptual framework developed from literature, which is then exemplified by a case study. This framework conceptualizes backshoring readiness as aspects of requirements to knowledge, technology and supplier infrastructures. Furthermore, the readiness framework developed provides firms and their managers with six recommendations that can enable a rigorous evaluation of a firm’s readiness to embark on backshoring and reflect on the aspect of fitness of its current strategies.
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Bella Belerivana Nujen, Lise Lillebrygfjeld Halse, Rickard Damm and Hallgeir Gammelsæter
Against the recent trend toward reversed global outsourcing, the purpose of this paper is to provide insights on how the internal process can be handled once the decision on…
Abstract
Purpose
Against the recent trend toward reversed global outsourcing, the purpose of this paper is to provide insights on how the internal process can be handled once the decision on reverse outsourcing has been made. The authors focus in particular on in-house knowledge and technology requirements.
Design/methodology/approach
To explore the topic at hand, the researchers conducted in-depth semi-structured interviews with five companies operating in two different industry sectors.
Findings
Reversed outsourcing accentuates challenges relating to retained knowledge. When embarking on reversed outsourcing, companies need to acknowledge the effort to revive and renew capabilities in order to perform technical operations and advanced manufacturing production.
Research limitations/implications
The research is based on case studies in a Scandinavian context. Further empirical research from other high-cost locations is needed to validate the findings.
Originality/value
Explorative qualitative research is scarce in the emergent literature on reversed outsourcing. The paper provides practical and theoretical insights into how to handle diminishing knowledge in companies that are re-evaluating their sourcing strategies. It adds a knowledge dimension within the emergent literature. A framework for key success factors and propositions is also provided.
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Deodat Mwesiumo, Bella Belerivana Nujen, Anette Utvær and Martin Orheim
This study seeks to explore the strategies purchasing and supply managers can employ to navigate the challenges presented by low-probability-high-impact (LPHI) disruptions. The…
Abstract
Purpose
This study seeks to explore the strategies purchasing and supply managers can employ to navigate the challenges presented by low-probability-high-impact (LPHI) disruptions. The core aim is to create a process framework that provides a systematic, step-by-step method to help purchasing and supply managers effectively deal with the chaos triggered by LPHI events.
Design/methodology/approach
The study draws on qualitative data collected from eight firms operating within different industries (healthcare, fishing, food retail and manufacturing), where two firms represented each industry. The data underwent a thorough analytical process involving open coding, axial coding and aggregation of categories, resulting in the identification and formulation of overarching themes.
Findings
The analysis unveiled five primary challenges purchasing and supply management (PSM) encountered during the COVID-19 pandemic. These include supply shortages, supplier opportunism, the imperative to build a new supply base, price volatility and the need to make critical decisions based on limited information. It also identified contingent factors that influenced the magnitude of these challenges and approaches applied to address them. Additionally, it identified five responses to the challenges and two contingent factors that affected the responses.
Originality/value
This study extends the existing body of knowledge in purchasing and supply management by developing a process framework tailored to assist purchasing and supply managers in effectively addressing LPHI disruptions. To the best of our knowledge, this is one of the first studies to offer a structured, step-by-step approach that guides PSM professionals in navigating the chaos likely to be caused by such events.
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Bella Belerivana Nujen, Deodat Mwesiumo, Erlend Alfnes and Tore Tomasgard
Despite increased interest in the Operator 4.0 concept, there has been scarce attention on practice-oriented frameworks that can assist firms in reaping the potential benefits of…
Abstract
Purpose
Despite increased interest in the Operator 4.0 concept, there has been scarce attention on practice-oriented frameworks that can assist firms in reaping the potential benefits of technologies within the I4.0 framework. The purpose of this paper is to provide an integrative framework on how to engage Operator 4.0 effectively.
Design/methodology/approach
Following meta-synthesis logic and integrative conceptual analysis, this study synthesizes and integrates experimental case studies on Operator 4.0 solutions. The analysis is conducted on 24 cases retrieved from peer-reviewed articles.
Findings
The analysis revealed several factors that determine the type and extent of benefits that can be realized within a human-cyber-physical system. However, enhancing these capabilities is not straightforward, as several factors can inhibit the realization of these capabilities. Firstly, the benefits vary depending on the type of Operator 4.0. Secondly, the interoperability of the introduced I4.0 solution with the existing systems is crucial. Thirdly, the adaptability of the solution to serve multiple purposes is crucial, as it tends to increase technology acceptance.
Research limitations/implications
The studies reviewed in this research were based on experimental cases, with limited implementation of the solutions they proposed. As such, their implications when implemented on a larger scale are tentative.
Originality/value
The present study has synthesized existing experimental cases and developed an integrative framework to guide the implementation of Operator 4.0. By gathering primary insights from these experiments, we have clarified when and how Operator 4.0 and the required interactions can lead to successful implementation.
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Lise Lillebrygfjeld Halse, Bella Belerivana Nujen and Hans Solli-Sæther
Based on in-depth case studies from a high-cost environment, we identify context-specific aspects as important motivating factors for decision-makers re-evaluating the previous…
Abstract
Based on in-depth case studies from a high-cost environment, we identify context-specific aspects as important motivating factors for decision-makers re-evaluating the previous offshoring decisions. This chapter sheds light on the complexity of backshoring motives by adding a meso level, illustrating how case companies’ sourcing decisions evolve alongside the institutional context at a regional level. Further, the chapter provides a deeper understanding of the motives that underlay backshoring decisions and argues that these motivating factors differ from a broader set of drivers that can be found within the existing frameworks of backshoring.
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Bella Belerivana Nujen and Lise Lillebrygfjeld Halse
Global businesses base their sourcing operations and manufacturing decisions primarily on financial principles and metrics. What is often disregarded is the strategic value of…
Abstract
Global businesses base their sourcing operations and manufacturing decisions primarily on financial principles and metrics. What is often disregarded is the strategic value of domestic locations and contextual tacit knowledge. However, recent empirical work on knowledge flows shows that proximity is crucial. The risk of losing knowledge and important competencies developed through generations within companies and value chains needs to be considered when developing a global sourcing strategy. This chapter sheds light on how global shift-backs, through backshoring are seen to affect organizations that are located in a high-cost country. Based on interviews with managers and key personnel within a specific industry, we explore how companies preserve innovative capabilities when considering closing down (captive) offshore centers or when embarking on a backshoring strategy. The implications derived from the case offers valuable insights into how organizational capabilities could be restored when companies bring manufacturing back.
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