<p>The focus of this thesis is the outsourcing of activities in the New Product Development (NPD) process. Outsourcing of NPD refers to the outsourcing of development activities for the developing of new products (goods and/or service), where all or just the innovative part of the NPD process is purchased externally based on a contract with organizational units separate from the outsourcing firm. This definition implies that (A) the activity should be an innovative part of the NPD process, (B) the activity should have previously been conducted internally, and (C) the activity should be purchased under a contractual agreement between the organizations.</p><p>This thesis focuses on the outsourcing of NPD in medium sized firms. Although the framework is probably also useful for small and large firms, the three empirical studies in the thesis explored samples of medium sized firms. NPD is a knowledge intensive activity that requires the ability to handle uncertainties and is very dependent on the individuals involved in the process. In this way it differs from production, which (especially when producing standard items on a large scale) is easier to control, monitor and to evaluate the costs. Therefore, some considerations connected to knowledge acquisition and uncertainty needs to be addressed.</p><p>A literature review reveals that research on outsourcing often focuses on A) Large firms and B) outsourcing of production activities. In addition, research on NPD usually involves large firms, despite the fact that the interest in product development in small and medium sized firms has grown rapidly in recent years. Since outsourcing of NPD is a method frequently used to access competence, and reduce costs and/or uncertainty, it seems motivated to study the outsourcing of NPD in medium sized firms.</p><p>The thesis presents a decision framework that is based on three empirical studies (two survey studies and one case study) and a theoretical framework. The theoretical framework presented in the thesis is commonly used to understand outsourcing questions in general. In the present thesis the framework is applied in the specific situation of outsourcing a knowledge intensive activity (such as NPD) in the context of medium sized firms. Transactions cost, resource based, resource dependency, knowledge based, agency cost, and institutional theories are revisited in the thesis.</p><p>Outsourcing can lead to advantages in form of lower costs, access to knowledge or other resources, as well as access to markets, but it can also result in a knowledge drain, lower motivation among in-house staff, or an increased level of dependency on external organizations. Therefore the decision to outsource is not always a good one, and the pros and cons must be carefully evaluated. The result of the thesis is a decision framework that maps factors affecting the decisions that need to be made when outsourcing NPD. The implications can be of value to the outsourcing firm as well as to the potential outsourcing partner. The framework has been presented to the firms in the studies and thus has already proved its value to some extent.</p><p>The framework will also be used for the design of the studies that will hopefully take me towards my PhD degree, including a new survey study as well as a case study focusing on knowledge integration.</p>

The study aimed to explore the relationship among outsourcing decision factors, customer relationship management, and operating performance in the translation market. Surveys were undertaken from translation agencies in Taiwan. 50 questionaires were released to each region including the northern, central, southern, and Hualien and Taitung Counties. In this research, 200 questionnaires were issued and 175 were returned. We received 162 valid returns with 13 invalid ones. copies of effective samples were returned, yielding a return rate of 81%. After the reorganization, the Pearson product-moment correlation, descriptive statistics, One-way ANOVA, and multiple regression analysis were used to analyze the data. The results of the study included: 1. Translation agencies of different capital showed significant difference on outsourcing decisions factors, among them the intraindustry trust showed significant difference. 2. Translation agencies of different numbers of company showed significant difference on outsourcing decisions factors, among them the responsibility of translation showed significant difference. 3. Translation agencies of different responsible translation unit showed significant difference on outsourcing decisions factors, among them the responsibility of translation and professional ethics showed significant difference. 4. Translation agencies of different responsible translation unit showed significant difference on customer relationship management, among them the enhancement strategy and establishment strategy showed significant difference. 5. Translation agencies of different capital showed significant difference on operating performance, among them the organization expansion showed significant difference. 6. Translation agencies of different numbers of company showed significant difference on operating performance, among them the organization management showed significant difference. 7. Translation agencies of different responsible translation unit showed significant difference on operating performance, among them the organization expansion and organization communication showed significant difference. 8. There were both positive and negative correlations among outsourcing decision factors, customer relationship management, and operating performance of translation agencies. In addition, both outsourcing decision factors and customer relationship management can effectively predict the operating performance. The study provided the following suggestions based on the above findings: 1. To carefully estimate the outsourcing businesses to enhance operating performance. 2. To conduct the customer relationship management well to improve the customer interaction. 3. To pay attention to operating performance to enhance the entire profits.

Bakgrund: Outsourcing är ett fenomen och ett strategiskt styrinstrument som har utvecklats till att benämnas som en global trend. Outsourcing utgör även ett ständigt förekommande område inom den moderna forskningen. Förklaringen till utvecklingen är dels på grund av den globaliserade och konkurrenskraftiga värld som idag föreligger för företagen, dels på grund av de fördelar som kans uppnås med styrinstrumentet. Syfte: Vårt syfte med studien är att utifrån ett brett perspektiv kartlägga och tolka vilka faktorer som figurerar i beslutsunderlaget när ett företag fattar ett outsourcingbeslut. Kartläggningen vill vi sedan utveckla och översätta till ett praktiskt gångbart beslutsverktyg som ämnar möjliggöra ett mer effektivt och medvetet beslutsfattande hos verkliga företag. Vårt syfte är således att bemöta den problematik vi har identifierat i den tidigare forskningen, och samtidigt bidra till att framtida företag kan bemöta sina outsourcingbeslut på ett mer framgångsrikt sätt. Teoretisk referensram: Vår teoretiska referensram utgörs av de tre stora teoretiska inriktningarna Core vs. Peripheral, Transaction Cost Economics och Resource Based View. Till detta integreras vad forskningen lyfter avseende fördelar, nackdelar och risker med outsourcing. Tillsammans framhäver dessa teorier en uppsättning faktorer som belyser vad företag beaktar vid ett outsourcingbeslut. Metod: Vi utför en intervjustudie på fem svenska företag belägna i södra Sverige. Företagen är Husqvarna AB, Lammhults Design Group AB, Lantmännen ek. för., Tetra Pak AB och VIDA AB. I vår studie appliceras ett kvalitativt angreppssätt för att analysera och tolka det insamlade materialet. Resultat: Studien har resulterat till ett egenutvecklat beslutsverktyg vilket är förankrat i både forskning och företags erfarenheter. I analysen framkommer att vissa teoretiska faktorer visade sig ha starkt empiriskt stöd hos de studerade företagen, medan andra faktorer lös med sin frånvaro. Företagen kunde även tillföra sex unika faktorer vilka inte framkom ur teorierna. Sammantaget resulterade beslutsverktyget till 26 olika faktorer, samt en bilaga för att tydliggöra vad samtliga dessa faktorer innebär för ett outsourcingbeslut. Vår förhoppning är att vårt beslutsverktyg kommer att tillämpas av företag i framtiden, och att vi kan bidra till en mer effektiv verksamhetsstyrning hos företag. / Background: Outsourcing is a phenomenon and a strategic tool which have turned into a global trend. Outsourcing does also frequently occur as a subject of study within the modern research. The explanation behind the development of outsourcing are partly due to the globalized and competitive world which today exist for companies, and because of the advantages which can be achieved with the strategic tool. Purpose: Our purpose is to identify and interpret from a broad perspective which factors a company take into account while making an outsourcing decision. We then want to develop and translate this identification to a practical viable decision tool that intends to enable more efficient and conscious decision making within businesses. Our purpose is thus to address the problems we have identified in the previous research, while contributing to future companies so that they can meet their outsourcing decision in a more successful way. Theoretical framework: Our theoretical framework consists of the three major theories Core vs. Peripheral, Transaction Cost Economics and Resource Based View. In addition to this, we integrate what the research highlight regarding advantages, disadvantages and risks of outsourcing. Together these theories form a set of factors that illustrate what companies take into account while they make their outsourcing decisions. Method: We conduct an interview study of five Swedish companies located in the southern Sweden. The companies are Husqvarna AB, Lammhults Design Group AB, Lantmännen ek. för., Tetra Pak AB och VIDA AB. In our study we applied a qualitative approach to analyse and interpret our material. Findings: The study has led to a decision tool which has been developed upon both research and corporate experience. The analysis shows that some factors were found to have strong empirical support of the companies studies, while other where absent. The companies could also provide six unique factors which did not emerge from the theories. Overall, our decision tool resulted in 26 different factors, as well as an appendix to clear what all of these factors mean for an outsourcing decision. We hope that our decision tool will be applied by companies in the future, and that we can contribute to more efficient management of future businesses.

Aims and Objectives of Research. 1. To develop a 'one stop' generic decision making matrix (Outsourcing Decision Model) that provides the necessary clarity into defining whether an organisation should proceed with an outsourcing initiative or not. This would be based upon a distillation of existing models and reviewed literature. With the recognition that there may be subsequent advantages following the process, the model will include not only these but a means of evaluation in order to ascertain whether or not an outsourcing initiative may be or was successful or not. This latter aspect must logically be viewed as very important as an outsourcer must be aware of the benefits and also whether or not they were achieved. In addition, the model would include sufficient guidance with potential supporting metrics and their application. 2. To validate the Outsourcing Model through specific case studies using a triangulated approach in comparing the selected automotive OEM with some of its major competitors. Within the context of the case study, the research would also attempt to understand how the subject outsourcing organisation compares to its major competitors in equivalent comparable products and whether or not this reflects in the success of these companies. This case study not only provides a means of reinforcing the remaining case studies by using a triangulated method of application to the research developed outsourcing decision model but also provides a deeper understanding of the context of the supplier and competitors within the industry. 3. To test, via case studies the effect of specificity relating to the outsourced end product rather than the outsourced entity. This aspect provides the deepest application to the researched outsourcing decision model and therefore the most comprehensive validation. In addition, because the case studies are retrospective, they have the benefit of providing data to establish the level of success. This would be very important, particularly as it would enable a focus on particular criteria that failed to highlight a particular outcome and therefore provide a chance to make amendments. Low specificity is a well established criterion in defining an outsourced entity which is reflected within the body of the research. The further extension of this theory towards the outsourcing of and outsourced entity related to an established previously outsourced commodity is a new concept with no identifiable literature or evidence relating to its importance. The fact that it provides an element within the research that is potentially unique and carries no extra task burden it has been captured as an added element within the two important validation case studies: 4. To evaluate if outsourcing performance can be enhanced through the introduction of a second supplier into a single supplier sourcing situation. Subsequent to outsourcing, this aim and objective focuses upon the possibility of enhancing performance through the introduction of a second supplier. Particularly in cases whereby expertise may have been lost from an outsourcer, ultimate results relating to the outsourced entity may be compromised through either opportunism or diminished supplier performance. Whether these aspects are deliberate or unintended, an outsourcer should have some means of mitigating this risk. This mitigation may potentially be enabled through the use of a second supplier in order to provide a degree of competition. 5. To identify a link between Specificity, Commonality and Platform Sharing. The Author's professional role was very heavily based around the modern practices within the Automotive Industry. Outsourcing, platform sharing and commonality are well publicised strategies that have been adopted by various car manufacturers in order to gain efficiencies. Research was carried out in order to provide a better understanding of these strategies and to establish if there is any link between them. A confirmation of any linkages may then provide potential for establishing greater synergies between them.

Aims and Objectives of Research. 1. To develop a ¿one stop¿ generic decision making matrix (Outsourcing Decision Model) that provides the necessary clarity into defining whether an organisation should proceed with an outsourcing initiative or not. This would be based upon a distillation of existing models and reviewed literature. With the recognition that there may be subsequent advantages following the process, the model will include not only these but a means of evaluation in order to ascertain whether or not an outsourcing initiative may be or was successful or not. This latter aspect must logically be viewed as very important as an outsourcer must be aware of the benefits and also whether or not they were achieved. In addition, the model would include sufficient guidance with potential supporting metrics and their application. 2. To validate the Outsourcing Model through specific case studies using a triangulated approach in comparing the selected automotive OEM with some of its major competitors. Within the context of the case study, the research would also attempt to understand how the subject outsourcing organisation compares to its major competitors in equivalent comparable products and whether or not this reflects in the success of these companies. This case study not only provides a means of reinforcing the remaining case studies by using a triangulated method of application to the research developed outsourcing decision model but also provides a deeper understanding of the context of the supplier and competitors within the industry. 3. To test, via case studies the effect of specificity relating to the outsourced end product rather than the outsourced entity. This aspect provides the deepest application to the researched outsourcing decision model and therefore the most comprehensive validation. In addition, because the case studies are retrospective, they have the benefit of providing data to establish the level of success. This would be very important, particularly as it would enable a focus on particular criteria that failed to highlight a particular outcome and therefore provide a chance to make amendments. Low specificity is a well established criterion in defining an outsourced entity which is reflected within the body of the research. The further extension of this theory towards the outsourcing of and outsourced entity related to an established previously outsourced commodity is a new concept with no identifiable literature or evidence relating to its importance. The fact that it provides an element within the research that is potentially unique and carries no extra task burden it has been captured as an added element within the two important validation case studies: 4. To evaluate if outsourcing performance can be enhanced through the introduction of a second supplier into a single supplier sourcing situation. Subsequent to outsourcing, this aim and objective focuses upon the possibility of enhancing performance through the introduction of a second supplier. Particularly in cases whereby expertise may have been lost from an outsourcer, ultimate results relating to the outsourced entity may be compromised through either opportunism or diminished supplier performance. Whether these aspects are deliberate or unintended, an outsourcer should have some means of mitigating this risk. This mitigation may potentially be enabled through the use of a second supplier in order to provide a degree of competition. 5. To identify a link between Specificity, Commonality and Platform Sharing. The Author's professional role was very heavily based around the modern practices within the Automotive Industry. Outsourcing, platform sharing and commonality are well publicised strategies that have been adopted by various car manufacturers in order to gain efficiencies. Research was carried out in order to provide a better understanding of these strategies and to establish if there is any link between them. A confirmation of any linkages may then provide potential for establishing greater synergies between them. / Ford Motor Company Ltd.

The focus of this thesis is the outsourcing of activities in the New Product Development (NPD) process. Outsourcing of NPD refers to the outsourcing of development activities for the developing of new products (goods and/or service), where all or just the innovative part of the NPD process is purchased externally based on a contract with organizational units separate from the outsourcing firm. This definition implies that (A) the activity should be an innovative part of the NPD process, (B) the activity should have previously been conducted internally, and (C) the activity should be purchased under a contractual agreement between the organizations. This thesis focuses on the outsourcing of NPD in medium sized firms. Although the framework is probably also useful for small and large firms, the three empirical studies in the thesis explored samples of medium sized firms. NPD is a knowledge intensive activity that requires the ability to handle uncertainties and is very dependent on the individuals involved in the process. In this way it differs from production, which (especially when producing standard items on a large scale) is easier to control, monitor and to evaluate the costs. Therefore, some considerations connected to knowledge acquisition and uncertainty needs to be addressed. A literature review reveals that research on outsourcing often focuses on A) Large firms and B) outsourcing of production activities. In addition, research on NPD usually involves large firms, despite the fact that the interest in product development in small and medium sized firms has grown rapidly in recent years. Since outsourcing of NPD is a method frequently used to access competence, and reduce costs and/or uncertainty, it seems motivated to study the outsourcing of NPD in medium sized firms. The thesis presents a decision framework that is based on three empirical studies (two survey studies and one case study) and a theoretical framework. The theoretical framework presented in the thesis is commonly used to understand outsourcing questions in general. In the present thesis the framework is applied in the specific situation of outsourcing a knowledge intensive activity (such as NPD) in the context of medium sized firms. Transactions cost, resource based, resource dependency, knowledge based, agency cost, and institutional theories are revisited in the thesis. Outsourcing can lead to advantages in form of lower costs, access to knowledge or other resources, as well as access to markets, but it can also result in a knowledge drain, lower motivation among in-house staff, or an increased level of dependency on external organizations. Therefore the decision to outsource is not always a good one, and the pros and cons must be carefully evaluated. The result of the thesis is a decision framework that maps factors affecting the decisions that need to be made when outsourcing NPD. The implications can be of value to the outsourcing firm as well as to the potential outsourcing partner. The framework has been presented to the firms in the studies and thus has already proved its value to some extent. The framework will also be used for the design of the studies that will hopefully take me towards my PhD degree, including a new survey study as well as a case study focusing on knowledge integration.

This thesis investigates large private companies in Sweden that have outsourced their information technology (IT). A considerable proportion of IT outsourcing (ITO) is unsuccessful. For IT service buyers, this could cause IT that does not fully work, entailing problems with the network, application, infrastructure and security, with serious consequences such as a loss of customers’ confidence and significantly increased costs. Therefore, the main research goal was to analyse and define ways to improve ITO for buyer organizations. This main research goal was accomplished through three research goals that are the followings: 1) To develop a method for risk assessment in IT outsourcing; 2) To identify the important factors in IT outsourcing relationship; and 3) To identify the success factors in IT outsourcing.                       The research strategies applied in conducting this research were design science research and survey research. To achieve the first research goal, a method was developed for assessing the ITO risks, including support for mitigating these risks. This method could help both researchers and practitioners in estimating the ITO risks and in this way improve ITO. An application based on the developed method was used to facilitate the testing of this method by several ITO decision makers in large companies concerning its usability, correctness and functionality. Moreover, a study was performed to explore ITO decision makers’ acceptance of the developed method and their use of it for assessing the ITO risks.             The second research goal investigated how to improve service buyers’ ITO relationship with their providers. A well-working ITO relationship is a critical determinant of successful ITO and is relevant to the whole ITO life cycle. This research goal was achieved by identifying and analysing the most important factors in ITO relationships, including a prioritized list of those factors that are highly recommended for use in creating and maintaining a good ITO relationship.                       The third research goal examined how to improve ITO by identifying and prioritizing the success factors (SFs) in ITO. This research identified the ITO SFs in large companies and provided a prioritized list of them to be applied in these companies with a description of the value that they could create from implementation during the ITO life cycle. Moreover, the SFs identified in large companies were compared with those identified in medium-sized companies, which could give an indication to the researchers in this field that company size matters in regard to the implementation order of the identified SFs.               In summary, the research presented in this thesis contributes with: 1) a method for assessing the risks of outsourcing IT and, in the case that IT has been outsourced, suggested ways to mitigate them; 2) the important factors that could improve ITO relationships and 3) a prioritized list of success factors that could improve IT outsourcing. / Denna avhandling undersöker stora privata företag i Sverige som har outsourcat sin IT verksamhet. Som vi uppmärksammade har en stor del av IT-outsourcingen (ITO) misslyckats. För köparen av IT-tjänsten kan det leda till bristande IT funktionalitet med allvarliga konsekvenser som i värsta fall leder till förlorade kunder och betydande kostnadsökningar. Därför är det övergripande forskningsmålet är att analysera och fastställa hur ITO:n för köparen av IT tjänsten kan förbättras. För att lösa det övergripande forskningsmålet forskningen undersökte: 1) Utvecklingen av en metod för att bedöma riskerna med IT-outsourcing; 2) Identifiering av de viktiga faktorerna inom IT-outsourcingsrelationer; och 3) Identifiering av en lista över framgångsfaktorer i IT-outsourcing. De använda forskningsstrategierna för att genomföra forskningen var ”design science research" och kartläggning. För att uppnå först huvudforskningsmålet, har en metod tagits fram för att bedöma riskerna och vägleda hur man kan minska dem. Den här metoden kan hjälpa både forskare och de som utövar IT-outsourcing med att bedöma ITO-riskerna och på så sätt förbättra sina IT-outsourcing.  En programvara baserad på den metoden har utvecklats för att underlätta testningen av metoden vilket har genomförts med IT beslutsfattare på stora organisationer, beträffande användbarhet, korrekthet och funktionalitet. Dessutom har en studie utförts för att bedöma om programvaran kan accepteras av IT beslutsfattare och få reda på om de skulle använda metoden för att bedöma ITO riskerna. Det andra forskningsmålet har undersökt hur köparna av den outsourcade IT-tjänsten kan förbättra relationen med sina leverantörer. En bra ITO-relation är en avgörande faktor för en framgångsrik ITO och den är viktig för hela livscykeln. Forskningsmålet har uppnåtts genom analys för att hitta de viktigaste faktorerna ITO-relationsfaktorer, som studien rekommenderar för att skapa och underhålla en bra ITO relation. Det tredje forskningsmålet har undersökt hur ITO kan förbättras genom att identifiera och prioritera framgångsfaktorerna i ITO. Studien har identifierat framgångsfaktorerna i stora företag och tagit fram en lista med prioriterade framgångsfaktorer som bör implementeras i de undersökta företagen. Dessutom så har nyttan av dessa framgångsfaktorer beskrivits under ITO livscykeln. Dessutom har de identifierade framgångsfaktorerna från stora företag jämförts med framgångsfaktorerna som har identifierats för medelstora företag. Denna jämförelse ger en indikation till forskarna på det här området att prioriteringen av framgångsfaktorerna är beroende av företagsstorlek. Sammanfattningsvis, den beskrivna forskningen i den här uppsatsen bidrar med: 1) En metod för att bedöma risker och förslag på hur minska dessa risker; 2) En lista med de viktiga faktorerna för att förbättra ITO relationen inom IT-outsourcing och; 3) En prioriterad lista av framgångsfaktorer som kan förbättra IT outsourcing.