Review of the IS Offshoring Literature: The Role of Cross-Cultural Differences and Management Practices

There is a world-wide trend towards global cross-cultural networks of outsourcing relationships that are enabled by the extensive use of information- and communication technology (ICT). While ICT reduces national boundaries of global collaboration, cultural differences between outsourcers and vendor firms in offshore locations pose unique management challenges. This literature review analyzes the role of cultural differences between client and vendor companies and management practices in the information systems (IS) offshore outsourcing context. The analysis of the existing IS literature reveals limitations concerning prior conceptualizations of culture and cultural differences and provides ideas for future research on the effect of cultural differences as well as cultural, relationship, knowledge, and project management techniques. In particular, the existing literature can be grouped into formal and informal mechanisms as well as learning issues. Future research could adopt a more integrated and balanced perspective, taking into account formal and informal mechanisms and analyzing the interplay with learning issues

The Role of Cultural Differences and Cultural Intelligence in Controlling IS Offshoring Projects: A Theoretical Model

Cultural differences between outsourcers and vendor firms in offshore locations pose unique management challenges. One ofthese challenges is to find a control strategy that fits the cultural setting. However, most of the previous research has analyzedcultural and control issues separately from one another. The objective of this paper is to bring together these two distinctresearch streams. The result is a conceptual model describing the relationships between cultural differences and the choice ofdifferent control modes in IS offshoring projects. Propositions are derived from organizational control and national culturetheory. In particular, we introduce the concept of cultural intelligence as moderating the relationship between culturaldifferences and the choice of control. The resulting conceptual model developed in this paper makes important theoreticalcontributions to IS offshoring and serves as a basis for future empirical research

A framework of leadership cultural dimensions in outsourced projects

Outsourced projects are implemented often in environments that are impacted by factors that are internal and external to a firm. One key factor that impacts the success of outsourced projects is corporate culture. This paper explores how corporate culture impacts outsourced projects and what factors of corporate culture influence outsourced projects. We formulate a framework of key cultural dimensions in outsourced projects to help business and Information Technology leaders understand and mitigate cultural issues in outsourced projects

Information Systems Offshoring—A Literature Review and Analysis

IS offshoring has become one of the most discussed phenomena in IS research and practice. Particularly due to its rapid evolvement, current research on IS offshoring lacks a consolidated view on existing results. The article at hand seeks to meet this need by systematically reviewing and analyzing prior academic literature on IS offshoring. Based on a review of top-ranked IS and management journals as well as IS conference proceedings, we compile an exhaustive bibliography of ninety-six publications solely focusing on IS offshoring from a (project) management perspective. To adequately address the immense diversity of these publications, a multi-perspective research framework consisting of three perspectives, namely, research focus, research approach, and reference theory, is introduced and forms the basis for our literature analysis. The analysis results confirm the appropriateness of our framework and reveal directions for future research along the framework perspectives: Most importantly, in an effort to increase the significance and the trustworthiness of their results, researchers should apply a more theory-driven approach and provide a better description of their research context. Moreover, future research needs to pay particular attention to the pre-implementation stages of an IS offshoring initiative as well as the special nature of nearshoring and captive offshoring. Across all project stages, researchers should not only concentrate on the client point of view but incorporate multiple points of view

The Impact of National Culture on Control in IS Offshoring Projects

To our best knowledge, this is the first quantitative study on the impact of the supplier‘s national culture on the client‘s choice of control modes in IS offshoring projects. A survey-based field study was conducted, using a client-supplier matched pair as the unit of analysis. This approach allowed for the examination of the direct control relationship within 46 unique matched pairs. The study results offer empirical evidence that the supplier‘s national culture (i.e., power distance and time perception) affects the client‘s choice of controls in IS offshoring projects. However, the supplier‘s cultural background seems to play a less important role than suggested by prior research. These results (1) adapt previous research to the IS offshoring context, (2) enhance prior findings by establishing a more detailed understanding about the cultural influence on the exercise of controls as well as by confirming the significance of project size–an influencing factor that has previously shown mixed results, and (3) incorporate new constructs and measures in developing an integrated model that should be broadly applicable to other IS project contexts

The Impacts of Outsourcing on Business Process Automation Implementation : A Comprehensive Analysis

This master thesis presents a comprehensive analysis of the multifaceted impacts of outsourcing on different phases of Business Process Automation (BPA) implementation. Through interviews with specialists involved in BPA outsourcing, valuable insights were obtained regarding the experiences, perspectives, and challenges faced by organizations during various stages of BPA implementation. The study identified key findings in each phase, highlighting the importance of involving external vendors from the start, establishing effective communication channels, and addressing regulatory hurdles. Additionally, concerns related to knowledge loss and dependency on external vendors were explored, emphasizing the significance of documentation and knowledge transfer practices. The findings align with existing literature on outsourcing and BPA, while also providing unique contributions by emphasizing the establishment of a specific vocabulary, linking outsourcing to regulatory challenges, and offering practical insights for managing outsourcing risks. The implications for theory suggest the need for careful management and coordination throughout the outsourcing process, as well as the significance of early vendor engagement. Practically, the study offers recommendations for organizations, including the involvement of external vendors from the beginning, proactive planning for potential challenges, and the adoption of specific strategies to enhance vendor relationships and project monitoring. The study acknowledges limitations and suggests future research directions, such as exploring different industries and regions, incorporating quantitative data, examining decision-making processes, and investigating the long-term sustainability of outsourcing arrangements. Overall, this master thesis provides a nuanced understanding of the impacts of outsourcing on BPA implementation, offering practical recommendations for organizations seeking successful outcomes in their automation journey

Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?

Technological advancements, especially in Information and Communication Technologies (ICT) have enhanced greatly the competition spurred by the globalization of the world economies. Even small and medium-sized enterprises (SMEs) are no more immune to the challenges that the globalization brings about. It is a remarkable, and in certain instances worrisome, situation since SMEs play a key-role in most economies, in that they constitute the largest business block and provide the bulk of employment. However, opportunities presented by the globalization and the entwined, simultaneous pressure to innovate opens for SMEs new arenas to engage in what we may call are global innovation activities so as to gain, retain, and further strengthen the competitive position. This pressure to go for global innovation is enhanced by given socio-demographic factors, e.g. shortage of skilled labour, in many industrialized countries. This paper presents the findings of a survey by the authors carried out in the Metropolitan Region of Hamburg in Germany to identify barriers to innovation in selected industries and to work out solutions. The project RIS-Hamburg was initiated by the State Ministry of Economic and Labour Affairs in Hamburg and co-financed by the European Union (EU). The findings of this survey are here matched against perceived opportunities and challenges presented by global innovation. --Innovation Management,Barriers to Innovation,Globalization of Innovation,Research and Development,SME, Globalization,Small and Medium-sized Enterprises (SME),Internationalization of R&D,Research &Development