The outsourcing practice among small knowledge-intensive service firms
Purpose This paper aims to present findings on outsourcing practices in small service firms in Iceland, where the prime focus is on knowledge-intensive service firms. Design/methodology/approach To gain information on the scope and reason for outsourcing, telephone and online surveys were used. In t...
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cremerald:10.1108/vjikms-06-2019-0083 2024-09-15T18:14:16+00:00 The outsourcing practice among small knowledge-intensive service firms Edvardsson, Ingi Runar Óskarsson, Guðmundur Kristján Durst, Susanne 2020 http://dx.doi.org/10.1108/vjikms-06-2019-0083 https://www.emerald.com/insight/content/doi/10.1108/VJIKMS-06-2019-0083/full/xml https://www.emerald.com/insight/content/doi/10.1108/VJIKMS-06-2019-0083/full/html en eng Emerald https://www.emerald.com/insight/site-policies VINE Journal of Information and Knowledge Management Systems volume 51, issue 1, page 177-191 ISSN 2059-5891 2059-5891 journal-article 2020 cremerald https://doi.org/10.1108/vjikms-06-2019-0083 2024-07-31T04:05:58Z Purpose This paper aims to present findings on outsourcing practices in small service firms in Iceland, where the prime focus is on knowledge-intensive service firms. Design/methodology/approach To gain information on the scope and reason for outsourcing, telephone and online surveys were used. In total, 802 firms participated in the surveys, which were conducted in the period 2009-2018. Findings The results show that knowledge-intensive firms outsource far more than other service firms and are also more likely to have an outsourcing strategy. The grounds for increased outsourcing are cost reduction and strategic reasons, such as a focus on core competency and the search for external knowledge. In comparison with other firms, knowledge-intensive firms are increasingly outsourcing cleaning, security services, canteen and transportation, IT processes, human resource management, training and consulting. Additionally, managers of these firms select suppliers more on the basis of cost and quality. They also realize more cost savings as a consequence of outsourcing. Outsourcing had a very limited effect on employment in the firms, while cost reduction was achieved in 48.3 per cent of the firms involved. Research limitations/implications The findings are in line with the resource-based theory and, interestingly, this is not limited to knowledge-based firms, but to a large portion of service firms as well. Originality/value This is the first in-depth study on outsourcing patterns in knowledge-intensive firms, which uses theoretical classification in empirical analysis. Article in Journal/Newspaper Iceland Emerald VINE Journal of Information and Knowledge Management Systems 51 1 177 191 |
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Purpose This paper aims to present findings on outsourcing practices in small service firms in Iceland, where the prime focus is on knowledge-intensive service firms. Design/methodology/approach To gain information on the scope and reason for outsourcing, telephone and online surveys were used. In total, 802 firms participated in the surveys, which were conducted in the period 2009-2018. Findings The results show that knowledge-intensive firms outsource far more than other service firms and are also more likely to have an outsourcing strategy. The grounds for increased outsourcing are cost reduction and strategic reasons, such as a focus on core competency and the search for external knowledge. In comparison with other firms, knowledge-intensive firms are increasingly outsourcing cleaning, security services, canteen and transportation, IT processes, human resource management, training and consulting. Additionally, managers of these firms select suppliers more on the basis of cost and quality. They also realize more cost savings as a consequence of outsourcing. Outsourcing had a very limited effect on employment in the firms, while cost reduction was achieved in 48.3 per cent of the firms involved. Research limitations/implications The findings are in line with the resource-based theory and, interestingly, this is not limited to knowledge-based firms, but to a large portion of service firms as well. Originality/value This is the first in-depth study on outsourcing patterns in knowledge-intensive firms, which uses theoretical classification in empirical analysis. |
format |
Article in Journal/Newspaper |
author |
Edvardsson, Ingi Runar Óskarsson, Guðmundur Kristján Durst, Susanne |
spellingShingle |
Edvardsson, Ingi Runar Óskarsson, Guðmundur Kristján Durst, Susanne The outsourcing practice among small knowledge-intensive service firms |
author_facet |
Edvardsson, Ingi Runar Óskarsson, Guðmundur Kristján Durst, Susanne |
author_sort |
Edvardsson, Ingi Runar |
title |
The outsourcing practice among small knowledge-intensive service firms |
title_short |
The outsourcing practice among small knowledge-intensive service firms |
title_full |
The outsourcing practice among small knowledge-intensive service firms |
title_fullStr |
The outsourcing practice among small knowledge-intensive service firms |
title_full_unstemmed |
The outsourcing practice among small knowledge-intensive service firms |
title_sort |
outsourcing practice among small knowledge-intensive service firms |
publisher |
Emerald |
publishDate |
2020 |
url |
http://dx.doi.org/10.1108/vjikms-06-2019-0083 https://www.emerald.com/insight/content/doi/10.1108/VJIKMS-06-2019-0083/full/xml https://www.emerald.com/insight/content/doi/10.1108/VJIKMS-06-2019-0083/full/html |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
VINE Journal of Information and Knowledge Management Systems volume 51, issue 1, page 177-191 ISSN 2059-5891 2059-5891 |
op_rights |
https://www.emerald.com/insight/site-policies |
op_doi |
https://doi.org/10.1108/vjikms-06-2019-0083 |
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VINE Journal of Information and Knowledge Management Systems |
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51 |
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1 |
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177 |
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191 |
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1810452035867246592 |