THE CONTRIBUTION OF GOVERNANCE AND CAPABILITIES TO IT OUTSOURCING SUCCESS: A META-ANALYTIC STUDY

IT outsourcing (ITO) is receiving renewed focus but many firms fail to experience anticipated benefits. Extant research suggests that governance and capabilities are important ingredients for IT outsourcing (ITO) success. However, empirical studies into the relative effects of different modes of governance and types of capabilities have been difficult to reconcile. No overall conclusion has been reached on which factors are most important for successful ITO outcomes. Using meta-analytic techniques, we combine quantitative evidence from 62 past empirical studies on ITO success. Our analysis of 241 correlations reported across these studies shows that both relational governance and contractual governance, are important but relational processes namely, knowledge sharing and communication, and relational attributes of trust and commitment, are more significant than contract. We also found that client-side capabilities in both IT management and ITO management are as important as vendor-side capabilities to ensuring ITO success. Our results address the gaps in past qualitative reviews on the topic and provide important insights for ITO research and practice

Knowledge sharing dynamics in international subcontracting arrangements : The case of Finnish high-tech SMEs

This paper focuses on an under-researched topic of knowledge sharing dynamics in international subcontracting relationships of SMEs. Based on in-depth qualitative analysis of three Finnish high-tech firms, our findings reveal that not only cost and performance expectations motivate SMEs for international subcontracting, but also the factors like lack of in-house alternatives, the volatility of workload, and need for speed in growth-related activities such as deliveries play an important role. We further found that the SMEs try to balance internal risks/uncertainty and external risks/uncertainty throughout international subcontracting. Our paper contributes to the extant literature by being one of the first studies to specifically highlight the range of knowledge sharing and knowledge protection mechanisms used in international subcontracting in SME-SME relationships in which partners come from different institutional settings and physical locations. Moreover, this paper is one of the few studies to specifically highlight the role of time in knowledge sharing from the buyer's point of view as well, specifically by emphasizing the need to balance the internal and external risks during the life-cycle of international subcontracting while balancing short-term challenges and long-term strategic development plans.© 2021 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.fi=vertaisarvioitu|en=peerReviewed

Explaining Software as a Service Outsourcing: Economic and Social Considerations

Software as a service (SaaS) offers an innovative way to deliver software over the Internet to distributed organizations. While more and more SaaS providers are joining the market and competition among providers becomes more intense, we need to understand the considerations of potential clients. Built on transaction cost theory and social exchange theory, this study empirically investigates, with a national survey of IT/IS executives, the role of economic factors and the impact of social relationships on the economic factors in firms’ deciding to adopt SaaS. We found that cost savings are a critical consideration in SaaS and that social relationships exert a strong, positive direct impact on cost savings and positively moderate the impact of cost savings on SaaS. This paper expands our theoretical understanding of the SaaS phenomenon and provides some managerial insights

Interplay between network configurations and network governance mechanisms in supply networks a systematic literature review

Purpose: This work systematically reviews the extant academic management literature on supply networks. It specifically examines how network configurations and network governance mechanisms influence each other in supply networks. Design: 125 analytical and empirical studies were identified using an evidence-based approach to review the literature mainly published between 1985 and 2012. Synthesis: Drawing on a multi-disciplinary theoretical foundation, this work develops an integrative framework to identify three distinct yet interdependent themes that characterize the study of supply networks: a) Network Configurations (structures and relationships); b) Network Governance Mechanisms (formal and informal); and c) The Interplay between Network Configurations and Network Governance Mechanisms. Findings: Network configurations and network governance mechanisms mutually influence each other and cannot be considered in isolation. Formal and informal governance mechanisms provide better control when used as complements rather than as substitutes. The choice of governance mechanism depends on the nature of exchange; role of management; desired level of control; level of flexibility in formal contracts; and complementary role of formal and informal governance mechanism. Research implications: This nascent field has thematic and methodological research opportunities for academics. Comparative network analysis using longitudinal case studies offers a rich area for further study. Practical Implications: The complexity surrounding the conflicting roles of managers at the organisation and network levels poses a significant challenge during the development and implementation stage of strategic network policies. Originality/value: This review reveals that formal and informal governance mechanisms provide better control when used as complements rather than as substitutes

The dynamics of coordination in innovation networks

International audienceDespite abundant literature dedicated to networks and coordination, few empirical studies address the internal operations of inter-organizational networks. This research therefore aims to characterize coordination mechanisms of various forms and analyse their evolution through an empirical analysis of six innovation networks. A comparative case study approach examines how three main dimensions (dependency, prior business relations, and type of conflict) influence the type of coordination adopted by a hub firm, as well as its evolution. Each case serves as a distinct experiment that stands on its own as an analytic unit. The six cases thus are discrete experiments that serve as replications and contrasts. The study reveals a negative effect of a singular reliance on trust. Indirect guarantees need to combine with direct guarantees to facilitate hub firm dependence. Moreover, the coordination modes and the use of hard conflict resolution mechanisms vary with the type of conflict (i.e., project or behavioural). These findings have key implications for research and practice

The interplay of managerial and non-managerial controls, institutional work, and the coordination of laterally dependent hospital activities

This is the author accepted manuscript. The final version is available from Emerald via the DOI in this record.Purpose The purpose of this paper is to explore two hospital departments, one of which is laterally dependent on the other to function, but which are subject to distinct vertical managerial controls. This complexity in vertical–lateral relations generates tension amongst the hospital’s senior managers and a perception of coordination difficulties. However, this paper shows how the interplay between managerial and non-managerial controls, plus important employee “work”, moderates tension and facilitates day-to-day lateral coordination at the patient-facing level. Design/methodology/approach This is a case-study, relying mostly on the findings of semi-structured interviews. Theoretically, the paper draws from previous insights on inter-organisational relations (but informing the focus on intra-organisational coordination) and an “institutional work” perspective. Findings Consistent with much extant literature, this paper reveals how non-managerial controls help to moderate tensions that could emerge from the coercive use of managerial controls. However, the authors also show a maintained influence and flexibility in the managerial controls at patient-facing levels, as new circumstances unfold. Research limitations/implications The findings of this paper could generalise neither all laterally dependent spaces in hospitals nor patterns across different hospitals. The authors recommend future research into the dynamics and interaction of managerial and non-managerial controls in other complex settings, plus focus on the purposeful work of influential agents. Originality/value The paper has two primary contributions: extending our knowledge of the interplay between managerial and non-managerial controls inside complex organisations, where non-managerial controls reinforce rather than displace managerial controls, and highlighting that it is seldom just controls per se which “matter”, but also agents’ purposeful actions that facilitate coordination in complex organisations

Exploring the Relationship between Supply Network Configuration, Interorganizational Information Sharing and Performance

ABSTRACT EXPLORING THE RELATIONSHIP BETWEEN SUPPLY NETWORK CONFIGURATION, INTER-ORGANIZATIONAL INFORMATION SHARING AND PERFORMANCE By MARCIA DALEY August 2008 Committee Chair: Dr. Subhashish Samaddar Major Department: Decision Science Critical to the success of a firm is the ability of managers to coordinate the complex network of business relationships that can exist between business partners in the supply network. However many managers are unsure on how best to leverage their resources to capitalize on the information sharing opportunities that are available in such networks. Although there is significant research on information sharing, the area of inter-organizational information sharing (IIS) is still evolving and there is limited research on IIS in relation to systemic factors within supply networks. To help fill this gap in the literature, a primary focus of this dissertation is on the relationship between the design of the supply network and IIS. The design of the supply network is characterized by the supply network configuration which is comprised of (1) the network pattern, (2) the number of stages in the supply network, and (3) where the firm is located in that supply network. Four different types of IIS are investigated, herein. These types of IIS are a function of the frequency with which information is shared and the scope of information shared. Type 1 (Type 2) IIS is the low (high) frequency state where only operational information is shared. Similarly, Type 3 (Type 4) is the low (high) frequency state where strategic information is shared. The argument is that the type of IIS varies depending on the configuration of the supply network and that this relationship is influenced by the coordination structure established between firms in the network. The second focus of this dissertation deals with the relationship between IIS and performance. Research findings on the benefits to be gained from IIS have been ambiguous, with some researchers claiming reduced cost in the supply network with IIS, and others finding minimal or no benefits. To add clarity to these findings, the role that uncertainty plays in the relationship between IIS and performance is examined. The thesis presented is that the positive relationship between IIS types and the performance of the supply network is impacted by process uncertainty (i.e. the variability in process outcomes and production times), and partner uncertainty. Social network theory and transaction cost economics provide the theoretical lens for this dissertation. A model is developed and will be empirically validated in a cross-sectional setting, utilizing a sampling frame randomly selected and comprised of supply management executives from various industries within the United States