Impact of Strategic Outsourcing on Operational Control

2011 ◽  
pp. 244-283 ◽  
Author(s):  
Rob Dekkers
Keyword(s):  
Decision Making ◽  
Transaction Cost Economics ◽  
Core Competencies ◽  
Effective Means ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Manufacturing Strategy ◽  
Make To Order ◽  
Strategic Outsourcing ◽  
Operational Issues

Many studies using the theories of Transaction Cost Economics and the Resource-Based View together with the core competencies approach have confirmed that strategic outsourcing might be an effective means for efficient exploitation of available resources. Additionally, for companies, outsourcing provides access to resources beyond the reach of the intrinsic capabilities of an organisation. In theory, such strategies should fuel competitiveness and operational efficiency. Five cases – all characterised by Make-to-Order or Engineering-to-Order for processing orders – have been reviewed, to explore the operational issues that result from strategic decision-making on outsourcing. From this evaluation, it appears that these companies perform weakly on the control of the outsourced activities. Furthermore, it seems that the (manufacturing) strategy is disconnected from outsourcing practices and that outsourcing is not perceived as contributing to competitive advantage. Finally, traditional criteria and behaviour for decision-making, i.e. a cost-driven perspective, prevail, which does not address the operational challenges for the cases. This chapter indicates that, based on these three theories, strategic decision-making on outsourcing insufficiently accounts for operational issues that emerge later during manufacturing.

The Context for Strategic Decision-Making

2020 ◽  
pp. 11-15
Author(s):  
Greg Fisher ◽  
John E. Wisneski ◽  
Rene M. Bakker
Keyword(s):  
Decision Making ◽  
Competitive Advantage ◽  
Core Competencies ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Firm Resources ◽  
Cost Leadership ◽  
Environmental Attributes ◽  
Corporate Level

Strategic management does not exist in a vacuum; strategic decisions are strongly influenced by, and often dependent on, certain organizational and environmental attributes. This chapter discusses the context for strategic decision-making, be it a managerial, business, or corporate level choice. First, a firm’s vision, mission, and values are defined and discussed. Second, the chapter unpacks firm resources, capabilities, core competencies, and activities. Finally, the nature of competitive advantage is elaborated, and three types of competitive advantage are distinguished: differentiation, cost leadership, and dual advantage. Overall the chapter provides foundational insight into the factors that make up the context for strategic decision-making.

scholarly journals Symbolic Management of Process

2020 ◽  
pp. 42-76
Author(s):  
James Westphal ◽  
Sun Hyun Park
Keyword(s):  
Decision Making ◽  
Impression Management ◽  
Effective Means ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Symbolic Management ◽  
Seeking Behavior ◽  
Decision Making Processes ◽  
Strategic Advice ◽  
Actual Decision

In this chapter we examine the symbolic management of social processes in firm leadership and governance. We explain how firm leaders engage in verbal impression management about their strategic advice network, and how such communication is decoupled from their actual advice-seeking behavior. We go on to describe how firms gain legitimacy by adopting participative strategic decision-making programs that ostensibly use cutting-edge information technology to solicit input, despite decoupling the programs from actual strategic decision making. We then consider how and when firms manage impressions about the diversity and inclusiveness of firm leadership, and how such rhetoric may also be decoupled from actual decision-making processes. We conclude that the symbolic management of social and organizational processes in firm leadership is among the most efficient and effective means of increasing the legitimacy of firm governance and strategy.

scholarly journals HR Managers’ Emotions in Strategic Decision-Making Events: Evidence from Croatia

2021 ◽  
Vol 13 (2) ◽  
pp. 845
Author(s):  
Marli Gonan Božac ◽  
Katarina Kostelić
Keyword(s):  
Decision Making ◽  
Problem Solving ◽  
Strategic Planning ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Personal Perspective ◽  
Human Resource Managers ◽  
Organizational Perspective ◽  
Hr Managers ◽  
Experienced Emotion

The inclusion of emotions in the strategic decision-making research is long overdue. This paper deals with the emotions that human resource managers experience when they participate in a strategic problem-solving event or a strategic planning event. We examine the patterns in the intensity of experienced emotions with regard to event appraisal (from a personal perspective and the organization’s perspective), job satisfaction, and coexistence of emotions. The results reveal that enthusiasm is the most intensely experienced emotion for positively appraised strategic decision-making events, while frustration is the most intensely experienced emotion for negatively appraised problem-solving events, as is disappointment for strategic planning. The distinction between a personal and organizational perspective of the event appraisal reveals differences in experienced emotions, and the intensity of experienced anger is the best indicator of the difference in the event appraisals from the personal and organizational perspective. Both events reveal the variety of involved emotions and the coexistence of—not just various emotions, but also emotions of different dominant valence. The findings indicate that a strategic problem-solving event triggers greater emotional turmoil than a strategic planning event. The paper also discusses theoretical and practical implications.

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