Determinants of making decisions about insourcing in the organization

Abstract

The paper presents the conditions for making decisions about insourcing in the context of changing the boundaries of the organization. Insourcing and outsourcing affect, in the opposite ways, the shaping of the organization’s boundaries. As a result of including in the organization processes carried out so far outside its structures (insourcing), the organization’s borders grow, and as a result of outsourcing, the organization’s borders are reduced. The paper presents selected definitions of insourcing available in literature. It describes the essence and criteria for resolving the dilemma of make or buy. The basics of transaction costs theory and resource theory of the company in the context of choosing the way of obtaining the product of a selected process are presented. In addition, the motives of insourcing along with the reasons for the failure of outsourcing projects by types of companies on the Polish market are described. The results of our own research on the use of insourcing and backsourcing in Polish organizations are also presented. The results of the conducted research confirm the phenomenon of insourcing and its statistically significant connection with the size of the organization. The study was conducted as a result of research project no. 2014/13/D/HS4/01921 financed from the funds of the National Science Center.