A conceptual framework for capability sourcing modeling

Abstract

Companies need to acquire the right capabilities from the right source, and the right shore, at the right cost to improve their competitive position. Capability sourcing is an organizing process to gain access to best-in-class capabilities for all activities in a firm's value chain to ensure long-term competitive advantage. Capability sourcing modeling is a technique that helps investigating sourcing alternative solutions to facilitate strategic sourcing decision making. Our position is applying conceptual models as intermediate artifacts which are schematic descriptions of sourcing alternatives based on organization's capabilities. The contribution of this paper is introducing a conceptual framework in the form of five views (to organize all perspectives) and a conceptualisation (to formulate a language) for capability sourcing modelling