A Multi-level Investigation of Information Technology Outsourcing

This study proposes and tests a model of the information technology (IT) outsourcing decision that includes antecedents of both transaction costs and production costs. Production costs show the most robust influence on governance. Skills required to execute the activities, interdependence between the activities, and firm-level characteristics – uncertainty and knowledge intensity – are the main explanatory variables of the decision. Transaction-level uncertainty is the only transaction cost variable found to influence the decision

Internal and contextual factors, knowledge processes and performance: From the Chinese provider's perspective

This is the post-print version of the final paper published in Expert Systems with Applications. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2011 Elsevier B.V.This paper explores the influences of two internal factors, i.e. supplier team’s IT-based skills and communication with client’s team, and two contextual factors, i.e. supplier team’s understanding of client’s culture and collaboration with client’s team, on knowledge processes and performance in global sourcing of IT services from the Chinese provider’s perspective. Knowledge processes are characterized by knowledge sharing, knowledge-based coordination and expertise management, and performance is measured by product success and personal satisfaction. Data have been collected in 13 companies in Xi’an Software Park, with 26 in-depth, semi-structured interviews held with top and middle managers, and 200 structured questionnaires distributed to knowledge workers who are involved in global sourcing projects. The results indicate that supplier team’s IT-based skills, communication with client’s team, cultural understanding of client’s culture and collaboration with client’s team are positively associated with knowledge process and performance. Also, knowledge sharing, knowledge-based coordination and expertise management are found to be crucial for those influential factors to function positively and contribute to the performance. The findings of this study suggest that the effects of key factors on knowledge processes and performance in global sourcing of IT services appear to transcend the social and cultural differences; however, contextual factors seem to have more significant influences on knowledge processes and performance in global sourcing of IT services.National Natural Science Foundation of Chin

The impact of business process outsourcing on firm performance and the influence of governance : a long term study in the German banking industry

Does BPO pay off at the firm-level? Although there are several studies which analyze the potential benefits of BPO, there is a virtual absence of research papers on BPO outcomes. Based on an analysis of 137 Business process outsourcing (BPO) ventures at 254 German banks in a period between 1994 and 2005, we found that the outsourcer's financial performance in terms of profitability and cost efficiency was increased significantly compared to industry peers without BPO. The increase stems not from workforce reductions but rather from increased employee productivity. Further, we show how BPO governance ensures BPO success: individually negotiated outsourcing contracts help to improve cost efficiency and profitability measures. Relational governance based on trust has only positive effects on profitability. Keywords: Business Process Outsourcing, firm performance, firm characteristics, banking, German banks, governance JEL Classifications: G21, L14, L21, L2

Contextual factors, knowledge processes and performance in global sourcing of IT services: An investigation in China

Copyright @ 2011, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Reuse of this article has been approved by the publisher.In this paper, the authors explore the influences of two major contextual factors—supplier team members’ cultural understanding and trust relationship—on knowledge processes and performance in global sourcing of IT services. The authors discuss a joint investigation conducted by a cross-cultural research team in China. Cultural understanding is measured by individualism with guanxi and mianzi, two Chinese cultural concepts, and trust relationship is measured by adjusting trust, a notion reflecting the uniqueness of the Chinese people. Knowledge processes are characterized by knowledge sharing. Performance is measured by the outcomes of global sourcing, which is represented by product success and personal satisfaction. Data are collected in 13 companies in Xi’an Software Park, with 200 structured questionnaires distributed to knowledge workers. The results of quantitative data analysis indicate that cultural understanding influences trust relationship greatly, as well as knowledge sharing and performance in global sourcing of IT services. Trust relationship significantly impacts knowledge sharing, whereas trust relationship and knowledge sharing have no impact on performance. This study suggests that special aspects of the Chinese context have significant direct impacts on knowledge processes while no direct and immediate impacts on performance in global sourcing of IT services.National Natural Science Foundation of China, Program for Humanity and Social Science Research, Program for New Century Excellent Talents in University in China and Brunel University's Research Development Fund

The role of structural embeddedness in an IT outsourcing network

The design of governance to safeguard against a vendor's opportunistic behaviour is one of the critical issues in information technology outsourcing (ITO) since this behaviour causes cost escalation and service debasement. The roles of structural embeddedness underlying network governance have been gaining its importance as complementary or substitutable governance in ITO. Our research attempts to reveal how structural embeddedness can affect the decision-makings of clients and vendors and their resulting outcomes in an ITO network and how these effects are moderated by various ITO network structures according to outsourced IT services. An agent-based simulation and game-theoretic approach are adopted to build a simulation model to describe ITO networks with various structures and ITO transactions between clients and vendors. Finally, the future research directions are discussed

An investigation into practices, issues and improvement opportunities of logistical outsourcing : a study of integrated warehouse services : a thesis presented in partial fulfilment of the requirements for the degree of Master of Applied Science in Logistics and Supply Chain Management at Massey University

Some Bahasa Indonesian LanguageA pressure to maintain company's profitability and at the same time a need for the company to increase service level and productivity, has forced the organisation to re-engineer its business systems into a more efficient and effective process. Outsourcing has introduced a new concept to re-engineering the company's business system by transferring the company's non-core business to the experts. Outsourcing can be a tool to achieve the competitive advantage. Even though, unsuccessful outsourcing implementation due to poor planning of outsourcing strategy might result in many problems for the company. The reality is outsourcing is expected to be further developed in the future. Thus, there is plenty of room for logistical outsourcing growth. Nonetheless, the barriers of logistical outsourcing growth, such as poor outsourcing planning strategy causes the lack of understanding of outsourcing and lack of proper logistical infrastructure. These barriers result in the need to review the issues applicable in the practices of logistical outsourcing. This research, therefore, investigates practices, issues and improvement opportunities of logistical outsourcing with regards to the practices of Integrated Warehouse Services. The use of multi-strategy research by combining the qualitative and quantitative research leads to the achievement of the research objective. This research found that reasons to outsource, the selection of outsourced activities and outsourcing provider selection process were the most important factors in outsourcing decision making process. The practices of IWS has been identified to gain success in improving customer service, reducing product cost, improve productivity, improving information sharing, reducing response time and improving space utilisation. The outcomes of this research illustrates that there is a tendency to perceive provider selection process and criteria and also the logistical outsourcing agreements and relationships as the logistical outsourcing issues to have the most concern in the practices of Integrated Warehouse Services. This research also found that the company needs to have improvements in the outsourcing agreements and relationships, employees training of outsourcing concept and the selection process of outsourcing provider

A Conceptual Framework of Reverse Logistics Impact on Firm Performance

This study aims to examine the reverse logistics factors that impact upon firm performance. We review reverse logistics factors under three research streams: (a) resource-based view of the firm, including: Firm strategy, Operations management, and Customer loyalty (b) relational theory, including: Supply chain efficiency, Supply chain collaboration, and institutional theory, including: Government support and Cultural alignment. We measured firm performance with 5 measures: profitability, cost, innovativeness, perceived competitive advantage, and perceived customer satisfaction. We discuss implications for research, policy and practice