Capability Sourcing Modeling - A High-Level Conceptualization Based on Service-Dominant Logic

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. In this paper, capability sourcing modeling is introduced as a technique to create sourcing alternative solutions to facilitate strategic sourcing decision making. Our approach is applying conceptual models as intermediate artifacts which are schematic descriptions of sourcing alternatives based on organization’s capabilities. Therefore, a high-level conceptualization based on Service-Dominant Logic (S-D Logic) is proposed as a language to create capability sourcing conceptual models.