Outsourcing maintenance in complex process industries: Managing firm capabilities in lock-in effect

Abstract

Purpose – The purpose of this paper is to analyze the rationale for choice of suppliers and the influence these decisions have on the firm’s capabilities. Design/methodology/approach – The authors examine the choice of in-house operations vs buying maintenance in the Swedish mining industry through a qualitative case study approach. Findings – The findings reveal a strong tendency to outsource maintenance. Research limitations/implications – This in turn has a strong influence on the firm’s capabilities and long-term competitive advantage and sustainability. Practical implications – Based on the empirical findings, the authors comment on the strength and weaknesses of the different outsourcing and attempt to find practical solutions that assist the firm in creating competitive advantage. Originality/value – The unique contribution of this study is that it extends prior firm capabilities studies by investigating the impact of capability loss specifically in complex, intricate maintenance processes in a dynamic industry.