Strategic outsourcing practices of multi‐national corporations (MNCs) in China

Abstract

Purpose – The purpose of this paper is to present a research model and case illustrations that explore strategic outsourcing practices for sustainable competitive advantages in the Chinese context.Design/methodology/approach – This study is based on in‐depth interviews of executives of three multi‐national firms (MNCs) from Switzerland, Korea and the USA that have been successfully operating in China for more than seven years.Findings – This paper discusses how three MNC firms in China maintain clear and disciplined strategic outsourcing and achieve desired business outcomes. They race to the top by managing strategic insourcing for high risk and high profit items while outsourcing low risk and high profit leveraging items.Originality/value – The paper presents a strategic outsourcing model and case studies of three multi‐national firms in China, which suggest both theoretical and managerial implications showing how to implement successful outsourcing practices in the global market.