PurposeHow to determine the appropriate contractual structure for an outsourcing relationship has been a major theme in the business process outsourcing (BPO) literature. Drawing on transaction cost economics, this study aims to examine how anticipated coordination and adaptation costs in a BPO relationship affect the choice of contract types. Specifically, this research categorizes contracts types (fixed-price, time and materials and hybrid contracts) based on levels of contract design comprehensiveness and flexibility to change.Design/methodology/approachThe research setting is the BPO for a focal firm, involving a contractor. Data from 153 US companies are collected using a structured questionnaire on senior executives of functional areas of marketing, IT and finance. Hypotheses were tested using ordered probit model.FindingsThe results show that maturity is negatively associated with anticipated adaptation costs, while modularity and IT detachability are negatively related to anticipated coordination costs. Furthermore, adaptation costs have a direct impact on the choice, whereas the anticipated coordination costs do not have a significant direct impact on contract choice. The strength of adaptation costs' impact, however, is significantly reduced when coordination costs are high.Originality/valueThis study explicitly examines the role of anticipated coordination and adaptation costs in shaping the strategic choice of contract types in the BPO market. By differentiating the two types of anticipated transaction costs, this research enables a better understanding of the dynamics between transaction characteristics, anticipated transaction costs and contract types in complicated relationships such as BPO relationships.
PurposeDrawing on conservation of resources (COR) theory and the motivation-opportunity-ability (MOA) framework, this study examines how salespersons' self-monitoring and psychological capital influence sales performance.Design/methodology/approachThis study uses survey data from 293 salespersons employed in China and their archival sales performance to test the hypotheses posited.FindingsThe results show that both salespersons' self-monitoring and psychological capital enhance sales performance via adaptive selling. However, these elements are primarily substitutes in influencing adaptive selling. In addition, by dividing social capital into two types (i.e. family-based social capital and customer-based social capital), the results reveal that salespersons' self-monitoring enhances family-based social capital, but not customer-based social capital. Finally, customer-based social capital, but not family-based capital, improves sales performance.Research limitations/implicationsThis paper extends the literature on sales force management, which examines various psychological traits and their influences on sales performance. While self-monitoring and psychological capital have been investigated separately, this research simultaneously examines these two factors by drawing on resource conservation theory. Furthermore, it explores how these psychological traits impact salespersons' ability development (i.e. adaptive selling) and capital accumulation (i.e., family-based social capital and customer-based social capital), which, in turn, affect sales performance.Practical implicationsThe results offer managerial insights into sales force selection and management. In particular, managers should encourage salespersons to obtain greater customer-based social capital, which is more valuable than family-based social capital in boosting sales performance.Social implicationsThe present research is also beneficial for employee psychological health management, as it seeks to illuminate the role of psychological traits, ability development and capital accumulation. It offers insights into sociological research on social capital by categorizing it into family-based and customer-based capital.Originality/valueThis paper extends the literature on salespersons' psychological traits, selling abilities and social capital by examining the impacts of self-monitoring and psychological capital on adaptive selling and social capital. Specifically, this study examines the interplay between self-monitoring and psychological capital from the perspective of resources conservation theory.
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