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The role of outsourcing in footwear manufacturing industry

Phan, Vu Nguyen (2020)

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The role of outsourcing in footwear manufacturing industry.pdf (591.4Kb)
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Pro gradu -tutkielma

Phan, Vu Nguyen
2020

School of Business and Management, Kauppatieteet

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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2020050424752

Tiivistelmä

The purposes of this study are to illustrate the nature of outsourcing in footwear manufacturing industry, and the central concentration of outsourcing will be role of outsourcing in making strategic decision. Footwear manufacturing industry provides interesting points regarding outsourcing, especially benefits and risks of outsourcing, outsourcing process, and motive outsourcing. The theoretical contribution of this study provides knowledge foundation of outsourcing in footwear manufacturing and illustrates roles of outsourcing in making strategic decision via analyzing factors of Transaction Cost Economics.

The qualitative research methodology is applied in this research. The conceptual framework is created by integrating previous outsourcing theories of core competencies, factors of outsourcing decision and strategic outsourcing. The conceptual framework is applied to assist collecting empirical data, analysis and establishing the theoretical conclusion. The empirical section includes a multiple case-study consisting two cases operating in footwear manufacturing industry.

As the result of this research, outsourcing of this study is guided by practical data from specific companies operating in footwear manufacturing industry. Outsourcing keeps an important role in making strategic decision of high managerial levels in various perspectives. Hence, role of outsourcing will become a good foundation for companies in creating strategic decision. Evaluation step in outsourcing process is identified is important phase during performing outsourcing strategies.

This study provides valuable information for high top managers to realize the role of outsourcing in making strategic decision whether entrepreneurs should outsource or not. The analysis shows that companies must have insight understanding about the importance of evaluation step in outsourcing process as well as benefits and risk of outsourcing.
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