Outsourcing, supply chain upgrading and connectedness of a firm's competencies

While planning and implementing outsourcing initiatives, firms often wish to isolate outsourcing to a neatly defined area. However, experiences show that such isolation sometimes fails with detrimental effects for the outsourcing firm. This paper focuses on supply chain upgrading and the connectedness of a firm's competencies. Based on a case study, frameworks are illustrated and managerial implications and further research areas are identified. The paper contributes to the outsourcing discussion with an analytical tool useful for planning and monitoring outsourcing initiatives.