Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms

Byungjoo Paek, Joohyun Kim, Joonyoung Park and Heesang Lee
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Byungjoo Paek: Graduate School of Management of Technology, Sungkyunkwan University, Chunchundong 300, Suwon 440-746, Korea
Joohyun Kim: Graduate School of Management of Technology, Sungkyunkwan University, Chunchundong 300, Suwon 440-746, Korea
Joonyoung Park: Graduate School of Management of Technology, Sungkyunkwan University, Chunchundong 300, Suwon 440-746, Korea
Heesang Lee: Graduate School of Management of Technology, Sungkyunkwan University, Chunchundong 300, Suwon 440-746, Korea

Sustainability, 2019, vol. 11, issue 17, 1-28

Abstract: Successful outsourcing strategy is a key enabler of sustainable competitiveness of established firms engaged in technology-intensive business. This study proposes a research framework of a successful outsourcing process composed of resources, dynamic capabilities and created values, from a review of relevant literature and in-depth case study of four leading medical device firms. The research results specify four outsourcing types according to the characteristics of outsourced resources, and their alignment with resources owned by the outsourcer. Each type of outsourcing is positively affected by the outsourcer’s dynamic capabilities, namely sensing, integrating capability, absorptive capability and technology transfer capability. In addition, the significance of the outsourcee’s size according to each outsourcing type is also found. As a result of successful outsourcing experience, the outsourcer can reap the benefits of enhanced dynamic capabilities, i.e., market-oriented innovation, strategic flexibility, agility and increased efficiency, thereby creating a virtuous cycle of sustainable competitiveness in a volatile environment.

Keywords: outsourcing strategy; sustainable competitiveness; established firms; dynamic capabilities; medical device industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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