Empirical Study of Outsourcing in Manufacturing Companies

Abstract

With increasingly fiercer competition and shortened product life cycle, companies are finding it more difficult to survive and develop. The environment also makes it difficult for companies to make quick response to market demand all by themselves. It is, therefore, necessary for companies to increase their outsourcing activities. Literatures show that many companies are endeavoring to establish their competitive advantage by means of increased outsourcing activities. This paper will analyze the motives of outsourcing decisions by companies, especially manufacturers. The relationship between the manufacturer's competitive priorities and its supplier selection criteria will also be analyzed. The analysis of this paper will be carried out by an empirical study utilizing the data from International Manufacturing Strategy Survey (IMSS).