Evaluating the role and integration of contract manufacturing strategy in supply chain management: an empirical study

Liang-Chieh (Victor) Cheng

International Journal of Manufacturing Technology and Management, 2010, vol. 19, issue 1/2, 27-46

Abstract: Recently, the US manufacturers have been facing strong competition domestically and globally for cost reduction and product customisation. A key response to these competitive pressures is the outsourcing strategy. While sporadic case studies have investigated outsourcing's cost implication, empirical analyses examining outsourcing's financial and operational performance are lacking. This paper investigates the impacts of outsourcing in the US manufacturing sector and hypothesises that higher level of outsourcing will lead to higher performance. Using the US Economic Census as the data sources, the paper finds that outsourcing is positively associated with ROA and ROI but is negatively associated with product specialisation.

Keywords: contract manufacturing; ROI; return on investment; ROA; return on asset; product specialisation; capacity utilisation; outsourcing performance; supply chain management; financial performance; operational performance; manufacturing industry; USA; United States. (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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