New functions and competences accumulation in the contract services providers: a study through the case of Flextronics

Author(s)

Camila Zeitoum

• Document type: Master's Dissertation
• Press: Campinas, SP.
• Institution: Universidade Estadual de Campinas (UNICAMP). Instituto de Geociências
• Defense date: 2009-08-25

Examining board members

Sérgio Robles Reis de Queiroz; André Tosi Furtado; Marcelo Silva Pinho

• Advisor: Sérgio Robles Reis de Queiroz
• Field of knowledge: Applied Social Sciences - Economics
• Indexed in: Base Acervus-UNICAMP
• Location: Universidade Estadual de Campinas. Biblioteca Central Cesar Lattes; Universidade Estadual de Campinas. Instituto de Geociências. Biblioteca Conrado Paschoale

Abstract

This study presents the evolution of the contract manufacturers to a broader range of more complex phases of electronics' value chain. The outsourcing phenomena is discussed as one of the changes in the organization of the great vertically integrated corporations in the 1970s, mainly due to a stonger competition and the volatile demands. Besides these companies' internationalization process, the manufacturing outsourcing emerges as an alternative to the predominant model in different industries. Some of the electronics industry's characteristics are pointed out as reasons for the companies to outsource functions beyond manufacturing. In this scenario, we introduce the Electronics Manufacturing Serivices providers, which emerged as board stuffers to respond to the Original Equipment Manufacturers and are now capable of offering an integrated set of solutions from the most inicial phases of the electronics products' value chain - such as product design and development - to the post manufacturing phases - logistics, distruibution and repair services. Based on the evolutionary theory, some of the elements related to the evolution process of the firm are discussed through the concepts of strategy, structure and core compentences. It is assumed that the firm must adopt a strategy that combines exploration and exploitation practices to reach (i) a better use of the internal resources and also (ii) the search for new technologies and knowledge. The changes in the firms' strategies must impact the way through which the company is structured, as a result of organizational routines. Due to this arrangement, the firm develops core competences. The importance of dynamic capabilities is reinforced, as they are pointed out as crucial for the firms to adapt to the changing environment of competition. The case of Flextronics ilustrates the evolution process of one of the greatest firms in the EMS industry towards more complex services (AU)