An Evaluation of American Companies that Outsource Manufacturing to China: Decision-Making and Performance

<p>The topic of outsourcing ranks at the top of business issues for a wide variety of companies (Wery, 2004; Ezrati, 2004). The majority of American companies believe that offshore-related matters rank as the most strategic decisions that management is expected to make in the next 12 months (Wery, 2004). “Outsourcing in China can help many companies save money, but it can be very frustrating if not done right" (Ting, 2004). The perceived benefits of outsourcing production to China are tremendously enticing, but a lack of understanding of the total costs involved lures many companies into outsourcing when it is not necessarily the best decision. The question then arises and becomes the purpose of this study: How does a company decide if offshore outsourcing is the right decision and, if so, how do they do it properly? The purpose of this research is to search for generally applicable information that can be utilized by American companies in deciding whether to outsource their production to China. The information regarding outsourcing overseas was collected from 22 American firms and 24 Chinese manufacturers to evaluate and provide insight into outsourcing arrangements. In the final chapter of this thesis, a summary is presented of the important findings regarding the purpose of the thesis study.</p>

Name thesis:degree_name

MS

Grantor dc:publisher

Brigham Young University - Provo

Author dc:creator

• Favreau, Michael Kenyon

• China
• Chinese
• outsource
• outsourcing
• manufacturing
• offshore
• decision
• benefit
• pitfall
• Asia
• saving
• global
• Business

Language dc:language

English

Repository record dc:identifier

https://scholarsarchive.byu.edu/etd/1052

OAI identifier oai:identifier

oai:scholarsarchive.byu.edu:etd-2051