AN EXPLORATORY CASE STUDY ON OUTSOURCING PRACTICES AND GOVERNANCE MECHANISMS IN MAINTENANCE AND OPERATIONS: EVIDENCE FROM BHILAI STEEL PLANT
DOI:
https://doi.org/10.29121/shodhkosh.v5.i5.2024.5702Keywords:
Outsourcing Practices, Governance Mechanisms, Core-Close Vs. Core-Distant Activities, Maintenance and Operations, Strategic Decision-MakingAbstract [English]
The purpose of this exploratory case study is to examine the outsourcing practices and governance mechanisms in maintenance and operations at Bhilai Steel Plant, one of India's largest public-sector steel manufacturing units. The study aims to understand how the distinction between core-close and core-distant activities influences outsourcing decisions and how governance mechanisms, including supplier capability, contractual clarity, and performance monitoring, affect operational efficiency. Adopting a qualitative, case-based methodology, the research draws insights from existing internal practices, organizational reports, and industry literature without collecting primary data or applying statistical tools. The findings reveal that strategic outsourcing decisions at Bhilai Steel Plant are guided by operational criticality, vendor competence, and the need for robust governance frameworks. Core-distant tasks are more frequently outsourced, while core-close functions are retained in-house or governed under strict protocols to mitigate risk. This research contributes to the practical understanding of outsourcing in heavy industries and underscores the importance of tailored governance structures.
References
Abele, E., Kluge, J., & Näher, U. (2008). Global Production: A Handbook for Strategy and Implementation. Springer.
Abele, E., Kluge, J., & Näher, U. (2008). Global Production: A Handbook for Strategy and Implementation. Springer. DOI: https://doi.org/10.1007/978-3-540-71653-2
Bhattacharjee, B., & Upadhyay, N. (2014). Towards Investment Decision: A Study Deployed on FII Inflows in India. Asian Journal of Management, 5(2), 192-195.
Bhattacharjee, B., Dave, S., & Sondhi, S. (2016). Relevance of efficient market hypothesis: a study of present scenario in India. Journal of Management Research and Analysis, 3(2), 82-87. DOI: https://doi.org/10.5958/2394-2770.2016.00013.2
Ghosh, K., & Fedorowicz, J. (2008). The role of trust in supply chain governance. Business Process Management Journal, 14(4), 453–470. https://doi.org/10.1108/14637150810888078 DOI: https://doi.org/10.1108/14637150810888019
Ghosh, M., & Scott, J. E. (2009). Managing the risks of outsourcing: A survey of recent literature. Journal of Information Technology Case and Application Research, 11(3), 25–44. https://doi.org/10.1080/15228053.2009.10856170 DOI: https://doi.org/10.1080/15228053.2009.10856170
Heide, J. B., & John, G. (1992). Do norms matter in marketing relationships? Journal of Marketing, 56(2), 32–44. https://doi.org/10.2307/1252040 Levina, N., & Ross, J. W. (2003). From the vendor’s perspective: Exploring the value proposition in information technology outsourcing. MIS Quarterly, 27(3), 331–364. https://doi.org/10.2307/30036560 DOI: https://doi.org/10.2307/30036537
Holcomb, T. R., & Hitt, M. A. (2007). Toward a model of strategic outsourcing. Journal of Operations Management, 25(2), 464–481. DOI: https://doi.org/10.1016/j.jom.2006.05.003
Kakabadse, A., & Kakabadse, N. (2005). Outsourcing: Current and future trends. Thunderbird International Business Review, 47(2), 183–204. DOI: https://doi.org/10.1002/tie.20048
McIvor, R. (2000). A practical framework for understanding the outsourcing process. Supply Chain Management: An International Journal, 5(1), 22–36. https://doi.org/10.1108/13598540010312945 DOI: https://doi.org/10.1108/13598540010312945
McIvor, R. (2005). The Outsourcing Process: Strategies for Evaluation and Management. Cambridge University Press. DOI: https://doi.org/10.1017/CBO9780511543425
McIvor, R. (2008). What is the right outsourcing strategy? European Management Journal, 26(1), 24–34. https://doi.org/10.1016/j.emj.2007.08.005 DOI: https://doi.org/10.1016/j.emj.2007.08.008
Poppo, L., & Zenger, T. (2002). Do formal contracts and relational governance function as substitutes or complements? Strategic Management Journal, 23(8), 707–725. https://doi.org/10.1002/smj.249 DOI: https://doi.org/10.1002/smj.249
Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79–91.
Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79–91.
Quinn, J. B., & Hilmer, F. G. (1994). Strategic outsourcing. Sloan Management Review, 35(4), 43–55.
Vining, A. R., & Globerman, S. (1999). A conceptual framework for understanding the outsourcing decision. European Management Journal, 17(6), 645–654. https://doi.org/10.1016/S0263-2373(99)00043-3 DOI: https://doi.org/10.1016/S0263-2373(99)00055-9
Williamson, O. E. (1985). The Economic Institutions of Capitalism. Free Press.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Suresh Kumar Panchbhai, Dr. Tripti Shastri, Dr. Bishwajeet Bhattacharjee
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
