NDLI: A processual analysis of the purchasing and supply organization in transition: the impact of offshoring

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A processual analysis of the purchasing and supply organization in transition: the impact of offshoring

Content Provider	Springer Nature Link
Author	Mugurusi, Godfrey Bals, Lydia
Copyright Year	2016
Abstract	Many companies have resorted to offshoring in order to reduce costs and grow their global market presence. Yet it remains unclear what impact the offshoring strategy has on the purchasing and supply organization (PSO) of these companies. In this paper the nature and type of changes offshoring organizations make within the PSO are examined, i.e. how new purchasing and supply management (PSM) structures and practices emerge, are maintained or are discarded as production operations are relocated. The processual perspective is used to analyze empirical data from a rich, in-depth case study within a global engineering company. Results suggest that in line with the law of requisite variety the PSO changes thoroughly when the company relocates its production activities through the captive offshoring mode, but does so in a more disjointed and non-linear manner than the current stage models would suggest. The offshoring process provides momentum for PSO change and influences where and how the change happens. We present five propositions for further research and conclude that offshoring provides managers with opportunities to: (i) change and influence the strategic direction of PSM in their organizations, and (ii) build viable strategies of retaining and managing knowledge and PSM competencies in global operations.
Starting Page	64
Ending Page	83
Page Count	20
File Format	PDF
ISSN	19369735
Journal	Operations Management Research
Volume Number	10
Issue Number	1-2
e-ISSN	19369743
Language	English
Publisher	Springer US
Publisher Date	2016-07-27
Publisher Place	New York
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Purchasing Procurement Sourcing Supply management Organization Captive offshoring Processual analysis Case study research Operations Management Engineering Economics, Organization, Logistics, Marketing Industrial and Production Engineering Operation Research/Decision Theory Management Innovation/Technology Management
Content Type	Text
Resource Type	Article
Subject	Industrial and Manufacturing Engineering Management Science and Operations Research Strategy and Management Management of Technology and Innovation

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
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9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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