University of Twente Student Theses


Motivating factors for insourcing decision in a logistics company

Julkunen, Suvi (2023) Motivating factors for insourcing decision in a logistics company.

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Abstract:Decisions regarding outsourcing or insourcing play a pivotal role in an organisation's overall performance. Strategic sourcing guides these decisions for companies to gain more competitive advantage. A research gap between insourcing and outsourcing literature has been identified. Gaining insight into the motivating factors driving companies insourcing decisions deepens the understanding of when insourcing increases a company's competitive advantage. This thesis examines which motivating factors influenced the case company’s decision to insource a part of its supply chain. A literature review is conducted to identify motivating factors identified in insourcing research and to identify competitiveness characteristics in the logistics industry. Enables and challenges for the insourcing decision will be identified and investigated through RBV and TCE theories. The thesis is a single case study with interviews with managers involved in the insourcing decision. Results of this study found motivating factors related to concepts of organisational aspect, operational performance, resources, control, and cost. A connection between previously identified motivating factors from literature and new ones was found. Enablers and challenges were related to supply management theories and found that the case company’s resources enable competitive advantage, but challenges generate transaction costs. The results indicate that motivators for insourcing are interconnected and diverse.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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