Evaluation of factors influencing the success of forced coopetition in IT multi-sourcing projects.

The concept of coopetition was introduced by Brandenburger and Nalebu in 1996 and is defined as a combination of cooperation and competition between multiple organisations. Since then, the number of articles on coopetition has constantly increased. As part of this process, the literature introduced the paradigm of forced coopetition. This recently developed paradigm describes a situation in which a client organisation forces multiple external suppliers to cooperate, even though the suppliers are competitors on an inter-organisational level. Hence, forced coopetition is an integral part of IT multi-sourcing projects with multiple IT supplier organisations.This research project focuses on an evaluation of factors that influence the success of forced coopetition relations in IT multi-sourcing projects. Due to the simultaneous coexistence of cooperation and competition, the client organisation experiencestensions, which may cause the multi-sourcing project to fail. As a result, the awareness of factors that are critical for the success of such relationships is crucial for a client organisation. This is particularly important because supplier organisationsplay an increasing role in the success of the client organisation. Despite the increased importance of coopetition management, only a limited body of research has examined which factors and control mechanisms have an impact on successful forced coopetition relations. This research project is first attempt to bridge this research gap.The study applied an explanatory sequential mixed method design, with priority placed on quantitative methods. First, the study conducts a quantitative survey to identify the critical success factors of a forced coopetition relation in IT a multi-sourcing project. Finally, explanatory semi-structured interviews are conducted within the study to discuss the quantitative findings in more detail while integrating the literature. Ultimately the study identified a set of factors which are considered as critical for forced coopetition relations.The study makes two main contributions. First, the study provides a framework of critical success factors in forced coopetition relations. Second, it offers guidance to managers of IT multi-sourcing projects as to which factors needs to be taken into account in order to successfully manage IT multi-sourcing projects with competingsuppliers

THE NEXUS AMONG INTER-FIRM COOPETITION, COOPERATION COOPETITION AND DIGITAL FINANCIAL INCLUSION: A CONCEPTUAL ANALYSIS

The purpose of this study is to empirically review literature on inter-firm coopetition and how it affects digital financial inclusion. Further, the paper is focusing on Sub-Saharan Africa as it is one of the regions of the world that is affected by lack of access and usage of financial services.  The article provides a review of literature that demonstrates the effect of the simultaneous use of competition and cooperation on firm performance and subsequently financial inclusion, in order to determine the current state of knowledge and provide direction for further research. The specific objectives this study are to: empirically review articles on inter-firm coopetition; review articles on digital financial inclusion; and review articles that concern the relationship between inter-firm coopetition and digital financial inclusion.  The main sources of this literature review were peer reviewed journal articles, edited academic books, articles in professional journals, and statistical data from government websites, and website material from professional associations. A narrative literature review approach was used to search and synthesis peer reviewed journal articles, edited academic books, articles in professional journals, and statistical data from government websites, and website material from professional associations. The study  identified six gaps in the literature as proposed by Miles, (2017) as follows: a population gap since literature on inter-firm coopetition’s applicability to the Sub-Saharan region is scanty; an evidence gap as studies on the welfare effects of inter-firm coopetition have been few, and thus there is rarely much evidence to analyse this subject area; a knowledge gap since it was observed that there is limited knowledge regarding how inter-firm coopetition could affect digital financial inclusion; a practical-knowledge conflict gap, since the use of digital financial services has increased digital financial inclusion by lower than desired levels, and hence the need for further interventions such as the use of the inter-firm coopetition strategy; a methodological gap as most of the literature reviews in coopetition studies use systematic reviews with very few using the narrative review; an empirical gap since evidence on the effect of inter-firm coopetition and digital financial inclusion.  This review found that inter-firm coopetition in relation to its effects on financial inclusion is rarely researched. Further, the literature provided limited evidence of coopetition studies in SSA. This is despite the literature showing that inter-firm coopetition has positive results for firm performance. This literature is specifically from western and eastern countries of the world. This review forms a basis for a study to investigate the effects of inter-firm coopetition on digital financial inclusion in sub-Saharan Africa, specifically Zambia. The findings contribute to literature on business relationships and models which have the capacity to accelerate digital financial inclusion. Keywords: Bank, Collaboration, Competition, Cooperation, FinTech, Inter-firm coopetition, Mobile Network Operators (MNO); Inter-Firm Coopetition,  Digital Financial Services Providers (DFSPs), Financial Inclusion; Digital Financial Inclusion; Financial Technologies; FinTech DOI: 10.7176/JESD/14-12-09 Publication date:June 30th 202

Coordinating Platform-Based Multi-Sourcing: Introducing the Theory of Conventions

Spurred by the consumer market, companies increasingly deploy smartphones or tablet computers in their operations. However, unlike private users, companies typically struggle to cover their needs with existing applications, and therefore expand mobile software platforms through customized applications from multiple software vendors. Companies thereby combine the concepts of multi-sourcing and software platform ecosystems in a novel platform-based multi-sourcing setting. This implies, however, the clash of two different approaches towards the coordination of the underlying one-to-many inter-organizational relationships. So far, however, little is known about impacts of merging coordination approaches. Relying on convention theory, we addresses this gap by analyzing a platform-based multi-sourcing project between a client and six software vendors, that develop twenty-three custom-made applications on a common platform (Android). In doing so, we aim to understand how unequal coordination approaches merge, and whether and for what reason particular coordination mechanisms, design decisions, or practices disappear, while new ones emerge

Impact of IT Multisourcing on vendor opportunistic behaviour - A research framework

IT Multisourcing (ITM), the provision of IT services by multiple interdependent vendors to a single client, is widely prevalent now. ITM, in principle, is believed to mitigate both strategic and operational risks of IT outsourcing for client organizations. Yet an in-depth inquiry into the association of ITM with these risks is largely missing in literature. There is limited research which systematically investigates the effects of ITM on different forms of risk. This paper develops a theoretical framework to understand the implications of ITM for the specific risk of vendor opportunistic behaviour, also termed ‘strategic risks’ of outsourcing. The fundamental attributes of ITM are identified and mechanisms through which they influence vendor opportunistic behaviour are explained. The advantages and limitations of the framework are discussed and future research directions are laid out

A Capability Framework for IT Service Integration and Management in Multi-Sourcing

Multi-sourcing, the blending of services from multiple external and internal providers, has gradually become the standard mode of operation in IT outsourcing. It allows companies to assemble a best-of-breed provider portfolio and to reduce costs. A key difference between single- and multi-sourcing is the potential interdependence between services delivered by multiple providers. To deliver a seamless service to the client’s business units, various services often need to be integrated and managed as an end-to-end service. This activity is denoted as service integration and management. Many clients, however, are having difficulties implementing and performing this important task. Therefore, we explore which IT capabilities organizations need to build for performing service integration and management. \ \ After deriving challenges from literature, we perform a multi-stage qualitative study based on a series of focus group sessions and expert interviews. In a qualitative content analysis, we develop a framework of IT capabilities which enable successful service integration and management by addressing the key challenges. We, thus, aim to contribute to more effective multi-sourcing solutions in practice and to lay the groundwork for future research in this important field

How Formal Governance Affects Multisourcing Success: A Multi-level Perspective

Multisourcing has become a common sourcing model in recent outsourcing practice. Yet, the extant and relevant IS literature has so far offered limited insight into how to stipulate both individual (i.e., individual vendor) and joint (the entire vendor network) performance while ensuring governance efficiency. Our study set about addressing this gap by examining how these three dimensions of multisourcing success can be achieved through formal governance. Specifically, we considered bilateral formal control, collective formal control and conflict arbitration (among vendors) as key formal governance elements. Results from a pan-European survey of client firms pursuing multisourcing projects show that bilateral formal control sets the stage to achieve both individual and joint performance, while conflict arbitration strengthens individual performance, and collective formal control strengthens joint performance. Governance efficiency is improved when both collective formal control and conflict arbitration are high. We also found that conflict arbitration strengthens the positive effect of collective formal control on both individual and joint performance. Our findings highlight the importance of governing inter-vendor relationships in multisourcing arrangements as opposed to relying solely on bilateral governance. Our study extends the limited literature on IS multisourcing, and assists managers in considering the strategies they wish to pursue when choosing appropriate governance mechanisms

Innovation Through IT and Business Process Outsourcing – Literature Review

Innovation is increasingly expected in today’s ongoing outsourcing relationships. While prior studies made considerable strides to examine innovation through outsourcing, the research landscape remains highly fragmented. In this review, we bring together and analyse prior research examining this emerging phenomenon in the contexts of IT outsourcing (ITO) and business process outsourcing (BPO). We focus on articles published between 1997 and 2018 in the top outlets across information systems (IS), management, and related disciplines. Our contribution is threefold: First, we present an overview of the key literature on this topic. Second, we identify and document three different scopes of achievable innovation through outsourcing, associated firm-specific intentions and capabilities, and relationship governance structures conducive to such value creating activities. Third, we put forward propositions for future research on innovation through outsourcing

Explaining Multisourcing Decisions in Application Outsourcing

Multisourcing—the delegation of interdependent tasks to multiple vendors—is receiving increasing attention in practice and in research. Yet, we know little about the circumstances under which organizations choose multisourcing. In this paper, we draw on incomplete contracting theory and the knowledge-based view to explain multisourcing decisions in application projects. We test our model using a comprehensive dataset of 1093 sourcing decisions made by Swiss public organizations. The results provide strong support for the model. We find that clients choose multisourcing more frequently when (1) the project is large, (2) the software is client-specific and the project is large enough, (3) client and vendor lack joint experience, (4) the client seeks knowledge, (5) the technology is not proprietary, and (6) the client is experienced in outsourcing. While these findings support common views that clients choose multisourcing in response to opportunistic threats and to knowledge needs, the findings also shed light on prerequisites for multisourcing