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Developing an Integrated Framework for Outsourcing in the Auto Industry

Motamedi, Sadegh | 2013

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 45257 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Sheikhzadeh, Mehdi
  7. Abstract:
  8. Outsourcing is currently a challenging issue in the auto industry. On one hand, outsourcing has be-come a competitive imperative for automakers due to its significant benefits. On the other hand, it involves many aspects of risks that could potentially hurt core competencies of a firm. As such, in the auto industry, it is highly critical to make optimal outsourcing decisions for which an integrated framework offering a holistic view seems quite necessary. In this thesis, based on four fundamental research questions of “Who?”, “What?”, “Whom?” and “How?”, an integrated framework for outsourcing in the auto industry is developed in order to identify effective outsourcing factors and associated causal relationships. Since in product development, design and production phases have profound discrepancies, separate models have been developed for outsourcing of these two phases. Based on a survey answered by managers and top planners of the two big Iranian automakers, Iran Khodro and Saipa, the proposed models have been tested while path analysis being used for data analysis. The results show that in the both models, “complexity” has a positive effect on “criticality”, while “criticality” having positive effects on “relative capabilities” and “partnership level”. “relative capabilities” also has positive effects on “partnership level”. It was counterintuitively observed that “modularity” has no meaningful effect on “partnership level” in the model presented for production phase. In fact, “modularity” was identified as the only differentiating factor in the outsourcing of the two phases. Not to mention that “modularity” is in its early stages of recognition in design and production phases in the auto industry and its vague definition and ambiguous concept calls for further integrated investigation in future
  9. Keywords:
  10. Outsourcing ; Automotive Industry ; Path Analysis Method ; Integrated Framework ; Design vs. Production

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