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Chapter FourWhat is environmental uncertainty factor?4.1What motivate outsourcing what is being outsourced risk and concerns? Whether what motivate outsourcing, evidence of what is being outsourced risk and concerns? Outsourcing activities include: outsources manufacturing components and other value adding activities. Some focused on employment is outsourced another firm's employees carrying out tasks previously performed one's own employees. Outsourcing is an activity outside the organization's chosen core competencies. It seems outsourcing is a sub-contracting relationships between firms, all foreign production, hiring of workers in non-traditional jobs, such as control workers and temporary and part time workers.What are the motivations for outsourcing reasons? Why outsourcing is needed to any organization. For example, it can enable firms to focus on core activities. The concept of focus originates in operation on a small, manageable, number of tasks at which the operation becomes excellent to specific technologies and as a risk of vertical integration advantages. Other benefits of outsourcing appear is literature on strategic management, operations management, purchasing and supply and innovations. Moreover, outsourcing can improve flexibility to meet changing business conditions, demands for products, services and technologies by creating smaller and more flexible clear evidence includes improved creditability image, greater workforce flexibility and avoiding being backed into specific assets and technologies are harder to measure. How outsourcing can improve company performance. For airline manufacturing industry example, Hill & Jones (1995) showed that the manufacture of a large portion of the Boeing 767 is Boeing's third largest commercial aircraft, which is outsourced to Japanese manufacturers, which include Fuji, Kawasaki and Mitsubish. As a result, only 10% of the value of the 767 Boeing is produced in-house. So, outsourcing is an attempt to enhance manufacturing air place industry competitiveness.How can choose smarter outsourcing? Organizations hope to do sight options to save money, among themselves staff layoffs and a reduction of overhead costs, such as office space. Private companies have long outsourced in order to save time and money. During periods of economic growth, many organizations began to use outsourcing more frequently and staff workloads grew in proportion to increase budgets. Tasks such as conducting needs assessments, reviewing proposals, conducting site visits, monitoring and creating evaluations systems were increasingly given to outside contractors, consulting firms and independent consultants in the belief that external specialists could do the work more efficiently and effectively than company itself.Nowadays, there is a growing stream of organizations need to research into the outsourcing of innovation activities within the innovation, management, marketing and economics disciplines. These organizations need to understand how with the outsourcing practice becoming more commonplace in their industry. However, their behaviors bring these two questions: Whether outsource or internalize innovation activities and the performance implications of this decision can support for both transaction cost and resource based arguments is examined with both theory bases showing substantial attention?

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