Dynamics of Outsourcing in Industrial Clusters: a Study of the Gujrat Fan Industry in Pakistan

Arif Iqbal Rana and Jawaid Abdul Ghani

Asian Journal of Management Cases, 2004, vol. 1, issue 1, 7-24

Abstract: Firms in industrial clusters outsource extensively. Factors influencing outsourcing de cisions are reviewed in the context of industrial clusters, characterized by high levels of specialization, low transaction costs, and technology diffusion. A framework for mak ing outsourcing decisions is developed and illustrated using a case study of outsourcing practices in the Gujrat fan cluster. Core competencies, together with outsourcing prac tices, were found to vary according to the size of the manufacturing firm. Given the extremely low cost of conducting transactions and the presence of highly specialized and efficient vendors, the decision that core activities should be retained and devel oped in-house is the key to survival in clusters.

Keywords: Outsourcing; industrial clusters; fan industry; resource-based theory; trans action costs (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/097282010400100103 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:anjomc:v:1:y:2004:i:1:p:7-24

DOI: 10.1177/097282010400100103

Access Statistics for this article

More articles in Asian Journal of Management Cases
Bibliographic data for series maintained by SAGE Publications ().