Outsourcing Service Activities

Kotabe, Masaaki; Murray, Janet Y.
March 2001
Marketing Management;Spring2001, Vol. 10 Issue 1, p40
Service firms seem to have begun outsourcing part of their service activities in much the same way as manufacturing firms have sourced components and finished goods in the past 30 years. However, little is empirically known about the nature of service-sourcing strategy. What types of service activities are conducive to outsourcing? Which factors are considered important in selecting suppliers for outsourcing service activities? How would service-outsourcing strategy affect firm performance? We have found that, similar to components and finished-goods procurement, supplementary service activities are increasingly outsourced. Furthermore, outsourcing of supplementary services seems to affect the service firm's market performance.


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