Enacting Outsourcing: An Innovation Process Perspective

Much research has been done on outsourcing. However, we still know little about outsourcing based on a social process view on innovation. Outsourcing is an innovation as a logistics-related process that is perceived as new by the adopter. We will explore and analyse an outsourcing idea, its development and implementation, from an innovation perspective. The development is studied in a qualitative, long-term process study. The analysis draws on Hoholm's (2009) model of innovation processes. It extends the applicability of this innovation model and its methodology of following the action into logistics and supply chain management (SCM) research. The outsourcing process is an innovation that develops in a rational way based on the incremental process because of its actor-network and simultaneous reflection. Interactions and confrontations come about because of involved contrary forces such as competing objectives. The model explains the practice of SCM innovation and increases the understanding of dynamics and complexity. The process study brings insights to cause-effect relations in the development of outsourcing that are consequential to innovative logistics and SCM.