Decision-making on outsourcing new product development (especially innovation projects), such as engaging and managing the supply chain, is far from easy. It may involve addressing strategic and operational risks that might cause longer development times and increase innovations costs. It is, therefore, imperative to select suppliers very carefully and set up an effective management strategy vis-à-vis the supply partners right from the inception phase. Supply chain management is facing enormous challenges, driven by interrelated disruptions that will have a vast and lasting impact.
Based on a relevant case study, Boeing 787 Dreamliner programme, this volume offers a comprehensive overview of the decision-making models for outsourcing strategic activities. The proposed model suggests a valuable approach to outsourcing the decision-making strategies for new product development when the innovation is driven by technological innovation.
Author(s): Luigi Cantone, Pierpaolo Testa, Giuseppe Fabio Cantone
Series: Routledge-Giappichelli Studies in Business and Management
Publisher: Routledge/Giappichelli
Year: 2023
Language: English
Pages: 243
City: London
Cover
Half Title
Title
Copyright
Dedication
Contents
List of Figures and Tables
Foreword
Introduction
1. Outsourcing in times of disruption
1.1. Introduction
1.2. In search of a supply chain in times of disruption
1.2.1. Disruption from digital technologies
1.2.2. Disruption from social and environmental sustainability
1.2.3. Disruption from the Covid-19 pandemic and the war in Ukraine
1.3. The Gruppo Schiano case study: How shifts in customer behaviour drive innovation in the bicycle industry manufacturing paradigm and supply chain
1.3.1. Introduction
1.3.2. Highlights of the bicycle market
1.3.3. The history of the bicycle industry
1.3.4. The company profile
1.3.5. From mass production to mass customization
1.3.6. Conclusions and implications for management
2. Theories of the firm and implications for outsourcing
2.1. Introduction
2.2. Transaction Cost Economics Theory (TCET)
2.3. Resource-Based Theory (RBT)
2.4. Competence-Based Competition Theory (CBCT)
2.5. Strategic Assets Theory (SAT)
2.6. Dynamic Capability Theory (DCT)
2.7. Knowledge-Based Theory (KBT)
2.8. Open Innovation Theory (OIT)
2.9. Network Theory (NT) and Supply-Chain Network Theory (SCNT)
3. A review of existing models in the strategic outsourcing literature
3.1. Outsourcing decision-making and types of outsourcing
3.2. Kraljic’s portfolio-purchasing model
3.3. Quinn’s model
3.4. Baden-Fuller et al. model
3.5. Sislian and Satir’s model
3.6. McIvor’s model
3.7. Becker and Zirpoli’s model
4. A case study. The Boeing 787 Dreamliner programme: leveraging the capabilities of the global and collaborative supply-partner network through technological disruption in the aircraft industry
4.1. Introduction
4.2. Methodology
4.2.1. Empirical research based on case study
4.2.2. The sample of companies involved in the case study
4.3. The perspective of the OEM: the rationale behind the launch of the B787-8 programme
4.3.1. Difficulties and delays in the B787-8 programme
4.3.2. The mitigation strategy for solving difficulties along the supply chain
4.4. The “Small prime” contractor’s perspective: Leonardo and the rationale behind the decision to join the B787-8 programme
4.4.1. How Leonardo exploited and explored new core competencies through the B787-8 Dreamliner programme
4.4.2. Leonardo’s perspective on supply chain management in the B787-8 programme
4.5. The tier-2 perspective: Dema and the rationale behind the decision to join the B787-8 programme
4.5.1. A new approach to supply-chain management for the Boeing 787-9 programme
4.5.2. Exploiting Dema’s new competencies through the B787-8 programme
4.6. The tier-2 Geven perspective: the rationale behind the decision to join the B787-8 programme
4.7. Discussion points
4.8. Findings
4.9. Conclusions and implications for management
5. Proposing a conceptual decision-making model for outsourcing new product development
5.1. Research questions, research propositions, and decision-making model
5.2. The Boeing 787 Dreamliner: a case of technological disruption in the aircraft industry
5.3. The conceptual decision-making model applied to the Boeing 787-8 Dreamliner programme
5.4. Management implications, limits and future directions
Afterword – The supply chain in the aviation industry: an insider’s perspective
References
Index
