Beyond the make-or-buy dichotomy: outsourcing creativity in the fashion sector |
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Authors: | Shuyu Lin Colin Campbell |
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Affiliation: | 1. The Hollings Faculty, Manchester Metropolitan University , Manchester , UK;2. Faculty of Business and Economics, Monash University , 26 Sir John Monash Drive, Caulfield East, VIC 3145 , Australia |
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Abstract: | Both a resource-based view and transaction cost economics perspective point to firms deciding to either make-or-buy an input. In practice, this tends to result in low-skill functions being outsourced while those of higher value are retained. In this article, we explore a situation counter to the prevailing literature. We study a highly creative industry – fashion – and discover the relationship between core competence and outsourcing is not as simple as previously conceptualised. Creativity, fashion's assumed competency, rather than being guarded within a firm is instead often outsourced or borrowed. More mundane tasks such as marketing and logistics are what each firm rather develops. The effects of resulting co-dependencies are mapped and analysed in order to offer managerial insight as well as contribute to discussion within the outsourcing and resource based literatures. |
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Keywords: | outsourcing creativity core competence transaction costs resource-based view innovation |
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