Purpose: The research on effects of outsourcing tends to focus on financial effects and effects at a country level. These are not the only consequences of outsourcing, though. When firms outsource functions previously performed in-house, they risk losing important competencies, knowledge, skills, relationships, and possibilities for creative renewal. Such non-financial consequences are poorly addressed in the literature, even though they may explain financial effects of outsourcing. Therefore, the purpose of this paper is to develop a model that enables the study of non-financial consequences of outsourcing. Design/methodology/approach: Based on a review of the literature on interdependencies between organizational functions, a main proposition is developed: given that savings gained from outsourcing are not reinvested in the organization, outsourcing of any function will negatively impact the capabilities of that and other functions in the organization. This proposition is broken down into sub-propositions, which are tested through a focus group study. Respondents include purchasing professionals with experience from best practice outsourcing. Findings: The initial proposition is developed through identification of variables mediating the proposed negative consequences of outsourcing. Mediating variables are broken down into four categories: variables relating to the outsourcer, the outsourcee, the relationship between the parties, and the context. Research limitations/implications: By developing a model for the study of non-financial consequences of outsourcing, this paper takes a step towards opening up an important avenue for future research. Originality/value: This paper contributes to the outsourcing field by not only considering non-financial effects, but also by drawing on examples of best practice outsourcing to identify ways in which potentially negative consequences of outsourcing may be managed.

In the last decades, the number of articles on solutions offerings has been growing, as well as the number of companies developing solutions strategies. This paper undertakes a critical examination of the literature on solutions offerings and draws on both the broader academic literature and empirical examples. Based on the review, a reconceptualization of solutions offerings is developed.

Purpose - The purpose of this paper is to conceptualise, discuss and evaluate an emergent marketing philosophy, "transcendental marketing", and its application in practice. Design/methodology/approach - A conceptual framework is grounded in the literatures of marketing practice and leadership styles, and refined by reference to two case examples. Findings - There is scope, limited at present but promising in the longer term, for moving marketing strategy onwards from the relational and transactional models to one in which the focus is on exchange of values beyond self-interest between "transcendent marketers" and consumers motivated by "self-transcendence". Research limitations/implications - Since this article is only a first attempt to develop an understanding of this alternative approach to marketing, social and cultural trends in society provide a strong impetus for the further conceptual development of the transcendental marketing concept and assessment of its use and usefulness in the real world. Practical implications - The proposed conceptual framework provides marketing strategists with a template for a radically different approach to marketing management, which offers the potential for enduring customer loyalty Originality/value - This paper contributes a radically new perspective on marketing, supported by empirical examples of two firms that have pioneered it.

Business service sourcing is increasing in importance for firms; a trend recognised by significant research efforts among scholars. The rapidly expanding literature is, however, highly fragmented. It is difficult to grasp what has actually been investigated, and what remains to be studied. Therefore, the purpose of this article is to review, analyse and categorise empirical research in the area of business service sourcing. A total of 119 empirically-based articles published in peer-reviewed journals were identified and classified according to their focus of research, empirical context, and research methodology. Most articles dealt with the sourcing process or sourcing strategy, less with antecedents to sourcing and sourcing outcomes. Logistics and information systems/information technology services have received the most attention, as have European and North American service buyers. A majority of articles employed statistical methods of analysis.

Driven by increasing global competition and commoditisation of technologies, many product-oriented firms are seeking new ways on competing. Instead of only delivering products supplemented by various kinds of relatively simple services they are repositioning their offerings as well as their relationship with their customers by offering more comprehensive services such as full maintenance contracts and business solutions. Prior literature has provided several definitions and descriptions of such offerings, as well as the reasons for going in this direction and the paths needed to undertake to become providers of such offerings. It typically implicitly or explicitly assumes that buyers are interested in such offerings, or even drive the development in this direction, since such offerings are supposed to provide more value to the buyers. There are, however, also indications that buyers are not that interested in such offerings. They may not only increase costs but also the risk of losing critical knowledge. However, there appears to be no systematic attempts to review and synthesize what has been written about this topic from the perspective of the buying firm. Thus, the aim of this paper is to review this literature and to suggest some avenues deserving further research.  

One of the most important global economic trends is outsourcing of activities not considered as core business in firms. Economics teaches us that there are several reasons for this. Due to economies of scale and scope, as well as differences in factor costs, some actors can carry out certain activities more cost efficiently than other actors. What is more, the research on outsourcing mostly focuses on relatively short-term economic effects, with some studies finding positive financial effects and others not. Financial effects, however, are not the only consequences of outsourcing. When firms outsource activities previously undertaken in-house, they risk losing important competencies, knowledge, skills, relationships and possibilities for creative renewal. Somewhat surprisingly, such non-financial effects of outsourcing have hardly been studied at all. Further, most studies on effects of outsourcing focus on the outsourcing of relatively standardised activities such as manufacturing, ignoring that increasingly other functions in firms are outsourced. Therefore, this paper addresses what happens to a firm-s capabilities when the firm outsources functions (other than manufacturing) previously performed in-house? A review of the literature on organisational capabilities revealed a great number of different capabilities and dimensions along which they can be sorted. For the purpose of this paper we found it useful to look at capabilities from the perspective of the firm-s main functions, such as capabilities relating to R&D, purchasing, manufacturing, marketing and sales, and service. In effect, we created a model suggesting that the outsourcing of one function (fully or in part) will negatively impact on capabilities not only relating to that specific function, but also relating to the capabilities of other functions in the firm. The model was expected to hold true only under the condition that savings from outsourcing were not reinvested in capability improvements. As an initial test of the model, we undertook a focus group discussion involving eight experienced sourcing professionals from different firms and industries. This quickly led us to realise that the model required significant revision. While, on a general level, focus group participants agreed that outsourcing could indeed have the effects posited, drawing on their own experience they identified numerous conditions under which the model would likely be falsified if tested. We, therefore, further qualified the model by introducing a number of moderating variables. For instance, the posited negative effects on a firm-s capabilities are moderated by the degree of integration between the outsourcer (the buying firm) and the outsourcee (the supplier). The greater the degree of mutual exchange and communication, the smaller the likely negative effects on capabilities, several participants in the focus group noted. In other words, the negative effects are moderated by managerial practices and contextual factors. Additional moderating factors include, among others, market structure, contractual form, and the outsourcer-s capability and capacity of managing external suppliers. In summary, we propose that, outsourcing of any function will negatively impact the capabilities of the same and other functions in the outsourcer-s organisation to a degree which depends on a set of managerial practices and contextual factors. Due to the complexity of the phenomenon, we intend to test this proposition by carrying out a number of case studies on large organisations. Additionally, we intend to identify how and why capabilities are affected by outsourcing. 

This paper explores patterns in the process of buying complex services. While there is currently hype about a service-dominant logic, there are also indications of a diametrically opposed logic implying the objectification of services; a goods-dominant logic. This paper investigates how buyers of different kinds of services relate to these logics and how the degree of objectification of services varies during different stages of the procurement process. By highlighting the buyers' perspectives and how services are transformed over time, the paper expands on the current knowledge of service-dominant logic. The paper is based on individual and focus group interviews with buyers at eighteen large industrial firms.