To look beoynd the fifty signs: A case study about outsourcing in manufacturing SMEs

Sammanfattning: This thesis serves to examine how manufacturing SMEs consider outsourcing. Furthermore, we aim to identify the main characteristics and patterns for these types of companies that can explain their rationale in such a decision. The chosen method for this thesis is abduction and selected research approach is multiple case studies. Seven case studies have been conducted at EAB AB, Esbe AB, Hörle Automatic AB, Pelly Industri AB, SGV Industrier AB, Swede-Wheel AB and Wulkan AB. Our findings have illustrated that although traditional outsourcing theory provides a good platform for explaining the rationale behind outsourcing decisions in SMEs, we have identified additional considerations that SMEs, operating as 2, 3 or 4-tier suppliers towards OEM-corporations, make. This thesis has derived four tentative explanations for the discrepancies between traditional outsourcing theories and outsourcing in SMEs in the OEM-industry, which could be considered as a small contribution to existing theories. The identified factors are; (1) Ownership, (2) Size of the company, (3) Product characteristics, (4) The position in the value chain.