What is it about?
As capability management is becoming more and more important to organisations, so is capability sourcing. The paper presents a model-based approach to explore alternatives for capability sourcing (e.g., in-house development, outsourcing, insourcing, shared service center) and to evaluate them based on strategic and performance metrics.
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Why is it important?
In highly dynamic and competitive environments, capability-based planning makes organisations agile and allows them to cope with uncertainties. While capability maps might indicate which capabilities to source to close capability gaps, little guidance is available on how to best source lacking capabilities. The paper provides an easy-to-use language to model decisive factors in capability sourcing and to support capability sourcing decision-making.
Perspectives
The paper results out of the PhD research of the first author. In this research she explores instruments and mechanisms for value-driven strategic sourcing, i.e., sourcing not just based on cost considerations, but primarily on value co-creation potential. We are very proud that we could publish this paper in INFORMS Service Science, based on a preliminary version that was presented at the 2016 International Conference on Exploring Service Science.
Geert Poels
Ghent University
Read the Original
This page is a summary of: Value-Driven Strategic Sourcing Based on Service-Dominant Logic, Service Science, December 2017, INFORMS,
DOI: 10.1287/serv.2017.0190.
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