Journal of Management Sciences

Rethinking Outsourcing: Balancing Competitive Advantage and Industry Interdependence

Research Article 26
Journal of Management Sciences - Volume 12, Issue 1 2025
By Arabi Chatmi, Karim Elasri, Bernard Guilhon
10.20547/jms.2014.2512101
Keywords: Experiential Outsourcing, Competitive Advantage, dependence, Innovation, and Industry.

Companies are reassessing outsourcing strategies in response to heightened competition, including COVID-19 impact. They are seeking ways to optimize competitive advantage through outsourcing while addressing concerns about dependence on suppliers. Our research reveals that industries that utilize outsourcing often do so to enhance their productivity levels, tapping into the productivity of supplier industries. The outsourcing rate plays a critical role in the client industry's capacity to focus on its core and essential activities and shield them from the influence of the supplier industry. In scenarios of low outsourcing rates, client industries typically engage in outsourcing when faced with low competition, resulting in a situation of low interdependence and the potential for client industry dominance. Conversely, in instances of high outsourcing rates, client industries are compelled to outsource amid intense competition, leading to a medium level of interdependence and the possibility of supplier industry dominance. Furthermore, regardless of the extent of outsourcing, client industries tend to prefer supplier industries that are less innovative. This preference helps them maintain their competitive advantage and reduces their dependence on highly innovative suppliers.

Submission Date: 15 Feb, 2025 Reviews Completed: 26 Jun, 2025
Acceptance Date: 26 Jun, 2025 Publication Date: 15 Jul, 2025

Share this paper


Want to publish in Journal of Management Sciences?
Send us your paper for review
421
Authors
133
Research Papers
2556
Citations