Corporate relations and strategic subcontracting

Technological progress, such as that associated with robotics and computer-aided manufacturing, is increasingly delivering machines that operate at lower variable costs, but often with a different optimum degree of utilization. If we restrict our analysis to companies that use two different types of...

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Main Authors: Inhaddou Abdelkrim, Markovič Peter
Format: Article
Language:English
Published: EDP Sciences 2020-01-01
Series:SHS Web of Conferences
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2020/11/shsconf_appsconf2020_01026.pdf
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author Inhaddou Abdelkrim
Markovič Peter
author_facet Inhaddou Abdelkrim
Markovič Peter
author_sort Inhaddou Abdelkrim
collection DOAJ
description Technological progress, such as that associated with robotics and computer-aided manufacturing, is increasingly delivering machines that operate at lower variable costs, but often with a different optimum degree of utilization. If we restrict our analysis to companies that use two different types of machines to manufacture a product, a change in the optimal degree of utilization of machines of one type resulting from technological developments may make it necessary to adapt the entire manufacturing process in order to fully exploit the cost advantage. If the cost advantages cannot be fully achieved by reconciling internal company structures, this may be achieved by adjusting inter-company structures. Such an adjustment can take various forms, depending on whether the enterprise in question offers unneeded capacity to other enterprises or complements insufficient internal production resources with available capacity from another enterprise. The aim of the article is to analyse important trends in the context of subcontracting. In order to keep the subject of the study easily comprehensible, the important empirical methods are used, which can discover new insights in the scientific sources. The resulting generalization is intended to show when the question of possible outsourcing should be placed on the negotiating table.
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spelling doaj.art-21a3598c87984429895accf2c36e77722022-12-21T21:33:32ZengEDP SciencesSHS Web of Conferences2261-24242020-01-01830102610.1051/shsconf/20208301026shsconf_appsconf2020_01026Corporate relations and strategic subcontractingInhaddou Abdelkrim0Markovič Peter1Faculty of Management, Comenius University in BratislavaFaculty of Business Management, University of Economics in BratislavaTechnological progress, such as that associated with robotics and computer-aided manufacturing, is increasingly delivering machines that operate at lower variable costs, but often with a different optimum degree of utilization. If we restrict our analysis to companies that use two different types of machines to manufacture a product, a change in the optimal degree of utilization of machines of one type resulting from technological developments may make it necessary to adapt the entire manufacturing process in order to fully exploit the cost advantage. If the cost advantages cannot be fully achieved by reconciling internal company structures, this may be achieved by adjusting inter-company structures. Such an adjustment can take various forms, depending on whether the enterprise in question offers unneeded capacity to other enterprises or complements insufficient internal production resources with available capacity from another enterprise. The aim of the article is to analyse important trends in the context of subcontracting. In order to keep the subject of the study easily comprehensible, the important empirical methods are used, which can discover new insights in the scientific sources. The resulting generalization is intended to show when the question of possible outsourcing should be placed on the negotiating table.https://www.shs-conferences.org/articles/shsconf/pdf/2020/11/shsconf_appsconf2020_01026.pdf
spellingShingle Inhaddou Abdelkrim
Markovič Peter
Corporate relations and strategic subcontracting
SHS Web of Conferences
title Corporate relations and strategic subcontracting
title_full Corporate relations and strategic subcontracting
title_fullStr Corporate relations and strategic subcontracting
title_full_unstemmed Corporate relations and strategic subcontracting
title_short Corporate relations and strategic subcontracting
title_sort corporate relations and strategic subcontracting
url https://www.shs-conferences.org/articles/shsconf/pdf/2020/11/shsconf_appsconf2020_01026.pdf
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