Information Technology, Production Process Outsourcing and Manufacturing Plant Performance

Bardhan, I., J. Whitaker, and S. Mithas. “Information Technology, Production Process Outsourcing and Manufacturing Plant Performance,” Journal of Management Information Systems (23:2) 2006, 13-40.

39 Pages Posted: 8 Jul 2019

See all articles by Indranil Bardhan

Indranil Bardhan

University of Texas at Dallas

Jonathan Whitaker

University of Richmond, Robins School of Business

Sunil Mithas

University of South Florida

Date Written: May 9, 2006

Abstract

What is the role of information technology (IT) in enabling the outsourcing of manufacturing plant production processes? Do plant strategies influence production outsourcing? Does production process outsourcing influence plant performance? This research addresses these questions by investigating the role of IT and plant strategies as antecedents of production outsourcing, and evaluating the impact of production outsourcing and IT investments on plant cost and quality. We develop a theoretical framework for the antecedents and outcomes of production outsourcing at the plant level. We validate this theoretical framework using cross-sectional survey data from U.S. manufacturing plants. Our analyses suggests that plants with greater IT investments are more likely to outsource their production processes, and that IT spending and production outsourcing are associated with lower plant cost of goods sold and higher product quality improvement. Our research provides an integrated model for studying the effect of IT and production outsourcing on plant performance.

Keywords: IT investment, production process outsourcing, plant strategy, plant performance, manufacturing, empirical research

Suggested Citation

Bardhan, Indranil and Whitaker, Jonathan and Mithas, Sunil, Information Technology, Production Process Outsourcing and Manufacturing Plant Performance (May 9, 2006). Bardhan, I., J. Whitaker, and S. Mithas. “Information Technology, Production Process Outsourcing and Manufacturing Plant Performance,” Journal of Management Information Systems (23:2) 2006, 13-40., Available at SSRN: https://ssrn.com/abstract=3415182

Indranil Bardhan (Contact Author)

University of Texas at Dallas ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Jonathan Whitaker

University of Richmond, Robins School of Business ( email )

1 Gateway Road
Richmond, VA 23229
United States
804.287.6524 (Phone)
804.289.8878 (Fax)

Sunil Mithas

University of South Florida ( email )

Tampa, FL 33620
United States

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