IT governance in SMEs: trust or control?

It is believed by many scholars that a small and medium-sized enterprise (SME) cannot be seen through the lens of a large firm. Theories which explain IT governance in large organizations and methodologies used by practitioners can therefore not be extrapolated to SMEs, which have a completely different economic, cultural and managerial environment. SMEs suffer from resource poverty, have less IS experience and need more external support. SMEs largely contribute to the failure of many IS projects. We define an out-sourced information system failure (OISF) as a failure of IT governance in an SME environment and propose a structure for stating propositions derived from both agency theory and theory of trust. The theoretical question addressed in this paper is: how and why do OISFs occur in SMEs? We have chosen a qualitative and positivistic IS case study research strategy based on multiple cases. Eight cases of IS projects were selected. We found that trust is more important than control issues like output-based contracts and structured controls for eliminating opportunistic behaviour in SMEs. We conclude that the world of SMEs is significantly different from that of large companies. This necessitates extra care to be taken on the part of researchers and practitioners when designing artefacts for SMEs

Risk assessment and relationship management: practical approach to supply chain risk management

The literature suggests the need for incorporating the risk construct into the measurement of organisational performance, although few examples are available as to how this might be undertaken in relation to supply chains. A conceptual framework for the development of performance and risk management within the supply chain is evolved from the literature and empirical evidence. The twin levels of dyadic performance/risk management and the management of a portfolio of performance/risks is addressed, employing Agency Theory to guide the analysis. The empirical evidence relates to the downstream management of dealerships by a large multinational organisation. Propositions are derived from the analysis relating to the issues and mechanisms that may be employed to effectively manage a portfolio of supply chain performance and risks

Narratives of an outsourced information systems failure in a small enterprise

In this study we investigate a case of an outsourced information systems (IS) failure (OISF) within the collaborative partnership among asymmetric partners. A small and medium-sized enterprise (SME) is dealing with an independent software vendor (ISV) conducting a project of implementing an IS that fails. We used a narrative research methodology for our enquiry. In the construction of our narrative we followed the OISF framework as a theoretical touchstone. As a major conclusion we found that asymmetric collaborations with partners with inadequate managerial and technical IT capabilities are extremely prone to OISF’s. We showed that an outcome-based and fixed price contract is not an adequate instrument to conduct such a partnership and to avoid a failure

Narratives of an outsourced information systems failure in a small enterprise

In this study we investigate a case of an outsourced information systems (IS) failure (OISF) within the collaborative partnership among asymmetric partners. A small and medium-sized enterprise (SME) is dealing with an independent software vendor (ISV) conducting a project of implementing an IS that fails. We used a narrative research methodology for our enquiry. In the construction of our narrative we followed the OISF framework as a theoretical touchstone. As a major conclusion we found that asymmetric collaborations with partners with inadequate managerial and technical IT capabilities are extremely prone to OISF’s. We showed that an outcome-based and fixed price contract is not an adequate instrument to conduct such a partnership and to avoid a failure

Research Agenda for Studying Open Source II: View Through the Lens of Referent Discipline Theories

In a companion paper [Niederman et al., 2006] we presented a multi-level research agenda for studying information systems using open source software. This paper examines open source in terms of MIS and referent discipline theories that are the base needed for rigorous study of the research agenda

Outsourcing Public Services: Ownership, Competition, Quality and Contracting

We survey the literature on the effects of public sector outsourcing. Guided by theory, we systematically arrange services according to the type and magnitude of their contractibility problems. Taken as a whole, the empirical literature indicates that public sector outsourcing generally reduces costs without hurting quality. This is clearly the case for “perfectly contractible services” like garbage collection, but outsourcing often seems to work reasonably well also for some services with more difficult contracting problems, e.g. fire protection and prisons. Outsourcing seems to be more problematic for credence goods, with residential youth care as the prime example. In contrast to previous reviews, we conclude that ownership and competition appear to be about equally important for the consequences of public sector outsourcing.Outsourcing; Contracts; Tendering; Ownership; Competition; Quality

From the Theory of the Firm to FDI and Internalisation: A Survey

This paper surveys recent contributions on the Internalisation issue, based on different theories of the firm, to show how the make-or-buy decision, at an international level, has been assessed through the opening up of the “black box” - traditionally explored by the theorists of the firm – and the simultaneous endogenization of the market environment – as in the International Economics tradition. In particular, we consider three Archetypes – Grossman-Hart-Moore treatment of hold-up and contractual incompleteness, Holmstrom-Milgrom view of the firm as an incentive system, Aghion-Tirole conceptualisation of formal and real authority in organisations – and show how they have been embedded in industry and general equilibrium models of FDI to explain the boundaries of global firms.FDI, Internalisation, International Economics, Incomplete contracts

Preference Bias and Outsourcing to Market: A Steady-State Analysis

We analyze a model that focuses on the export/outsource decision. Outsourcing has the advantage of providing better information about local preferences. The disadvantage is that producing in the host country also means using the inferior technology embodied in the local capital. The decision of whether to offer an outsourcing contract weighs these two effects against each other. The host country accepts the outsourcing contract if the higher price they pay for the outsourced good is worth the benefit of consuming a manufactured good closer to their ideal variety. These results suggest that as low income countries develop they become a more attractive destination for outsourcing because the quality of their capital improves and the local market is more lucrative. In addition, the developing low income country finds the outsourcing contract more attractive since their increased demand for the correct variety of the manufactured good increases. This suggests that preference based outsourcing is more likely to occur with higher income host countries.outsourcing, multinational firms, foreign direct investment

Supply chain management as the key to a firm’s strategy in the global marketplace

Purpose: This research aims to analyze the intersection of two literature streams: that of strategy and supply chain management (SCM). This review should create a better understanding of “strategic SCM” by focusing on relevant theories in the strategic management field and their intersection with SCM to develop a joint research agenda. Design/Methodology/Approach: We conducted a correspondence analysis on the content of 3,402 articles from the top SCM journals. This analysis provides a map of the intellectual structure of content in this field to date. The key trends and changes were identified in strategic SCM research from 1990-2014 as well as the intersection with the key schools of strategic management. Findings: The results suggest that SCM is key to a successful deployment of strategy for competing in the global marketplace. The main theoretical foundations for research in this field were identified and discussed. Gaps were detected and combinations of theoretical foundations of strategic management and SCM suggest four poles for future research: agents and focal firm; distributions and logistics strategic models; SCM competitive requirements; SCM relational governance. Research limitations/implications: Scholars in both the strategy and the SCM fields continue to search for competitive advantages. Much recent research indicates that strategic SCM can be a critical source for that advantage. One of the limitations of our research is that the analysis does not include every journal that published an article mentioning SCM. However, the 34 journals selected are reputed to be the most influential on SCM and focused primarily on SCM. Practical implications: The map of the intellectual structure of research to strategic SCM highlights the need to combine different theoretical approaches to the complex phenomenon of SCM. Practitioners should consider the supply chain as an informal organization and should devote time and resources to build a shared advantage across the supply chain. They should also consider the inherent benefits and risks that sharing Originality/value: The paper demonstrates that strategic SCM needs a balanced and rigorous combination of theoretical approaches to deliver more theory-driven evidences. Our research combines both a qualitative analysis and a quantitative methodology that summarizes gaps and then outlines future research from a large sample of articles. This methodology is an original contribution to this field and offers some assistance for enlarging the sample of future literature reviews

FM contract relationships: from mobilisation to sustainable partnership

Purpose / theory Outsourcing is a fundamental business model for the Facilities Management (FM) industry. To enable sustained mutual success the parties involved must seek to understand the unique, socially constructed, and often highly complex situational realities of the organisational ecologies they are engaged in. The FM industry can unlock improved performance and strategic credibility through an appreciation of the need for different conversations. Design / methodology / approach Findings from two recent cases are considered. Data from two different client-contractor relationship situations was collected utilising a critical ethnographic research methodology; a phenomenological paradigm that acknowledges knowledge as socially constructed through language. A variant on Scott-Morgan‟s unwritten-rules coding method was used to analyse the data and justify the prevalent themes and issues presented. Findings Findings include the role of perceptions and assertions in the construction of social realities, change management implications, and how these impact on the traditional view of the client/contractor relationship. Ethnographic findings are typically context specific, therefore generalisations must be carefully considered. The key findings are however substantiated by existing FM outsourcing literature. Originality / value Highlights the practical importance of seeking to understand socially embedded realities for improved FM contract performance. Considers the human resource element of change via FM outsourcing. Takes a social constructivist approach to organisational sense-making. Uses examples from focused, critical ethnographies to explore existing FM contracting dynamics. Qualitative investigations into related organisational circumstances are encouraged to further develop an evidence base