Capabilities as shift parameters for the outsourcing decision

Jain, Amit; Thiétart, Raymond-Alain

doi:10.1002/smj.2193

Cited by 25 publications

(32 citation statements)

References 31 publications

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“…External production cost advantage is the degree to which a provider is perceived to have an advantage over a client organization in production cost economies (e.g., Williamson, 1991;Rajeev and Vani, 2009). TCE suggests that the market's external production cost advantage should be positively associated with outsourcing decisions, and indeed four out of five empirical tests found that relationship (e.g., Dibbern et al, 2012;Freytag et al, 2012;Jain and Thietart, 2014). One study found that external production cost advantage was negatively associated with IT-shared services (Gefen et al, 2011), which was also a consistent finding with TCE.…”

Section: Transaction Attributesmentioning

confidence: 64%

“…Service complexity is the degree to which a service or project requires compound steps, the control of many variables, and/or where cause and effect are subtle and dynamic (e.g., Ventovuori and Lehtonen, 2006;Penfold, 2009). Among six empirical examinations, we coded five negative relationships between service complexity and outsourcing (e.g., Jain and Thietart, 2014), offshoring (e.g., Poston et al, 2010), and degree of outsourcing (e.g., Aubert et al, 2012). One study found no discernable relationship (Susarla et al, 2010b).…”

Section: Transaction Attributesmentioning

confidence: 99%

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Review of the Empirical Business Services Sourcing Literature: An Update and Future Directions

Lacity

Khan

Yan

2016

Journal of Information Technology

103

110

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The 2010 Journal of Information Technology (JIT) article, ‘A Review of the IT Outsourcing Empirical Literature and Future Research Directions,’ analyzed 741 findings on the determinants of Information Technology Outsourcing (ITO) decisions and outcomes from 164 empirical articles published between 1992 and 2010. Using the same coding method, the 2011 JIT article, ‘Business Process Outsourcing Studies: A Critical Review and Research Directions,’ analyzed 615 findings on the determinants of Business Process Outsourcing (BPO) decisions and outcomes from 67 empirical articles published between 1996 and 2011. Taken together, these two reviews found that the preponderance of evidence from both ITO and BPO research streams produced largely consistent results pertaining to the categories of independent variables that affected outsourcing decisions and outcomes. To investigate the most current research findings on business services, which comprise ITO and BPO, and to compare the results with the prior JIT reviews, we replicated the method used in the prior JIT reviews. In this update, we examined 174 newly published articles across 78 academic journals published between 2010 and 2014. We found that researchers have significantly expanded the variables of interest in the last 4 years. In all, researchers investigated 69 new variables. Compared with earlier research, this review of recent articles found a deeper exploration of the direct effects of transaction attributes, sourcing motivations, client and provider capabilities, and governance on sourcing decisions and outcomes. Researchers have also studied a broader variety of sourcing decisions, including shared services, captive centers, rural sourcing and backsourcing. This update also found a more nuanced understanding of relational governance and its interaction with contractual governance. We assessed the research progress that has been made on ten previously identified gaps in knowledge. We proposed a future research agenda that includes continued, incremental progress on ‘normal science’ research questions, as well as more ambitious research goals. We challenged researchers to investigate how sourcing clients, providers, and advisors can protect jobs, protect the environment, and ensure security in an increasingly automated world.

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Section: Transaction Attributesmentioning

confidence: 64%

Section: Transaction Attributesmentioning

confidence: 99%

Review of the Empirical Business Services Sourcing Literature: An Update and Future Directions

Lacity

Khan

Yan

2016

Journal of Information Technology

103

110

View full text Add to dashboard Cite

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“…The examination of the effects of outsourcing process mechanisms on insourcing is 12 Major differences in datasets, analytical methods, and study contexts forbid a true comparison of Jain and Thietart's (2013) findings with those of this study. Jain and Thietart's study is cross-sectional and focuses on the role of production and governance costs on outsourcing decisions; our study is longitudinal and focuses on the role of outsourcing process on insourcing decisions.…”

Section: Implications For Research On Private and Public Servicesmentioning

confidence: 87%

“…On the other hand, our theory and findings provide further evidence that the strategic decision process in local governments is different to that in the private context. For instance, in a study of IS sourcing decisions Jain and Thietart (2013) found that capabilities associated with organizational processes decrease the likelihood of outsourcing. 12 Future research should further probe the application of concepts and methodologies from the private to the public context, and vice versa.…”

Section: Implications For Research On Private and Public Servicesmentioning

confidence: 99%

Outsourcing and insourcing of organizational activities: the role of outsourcing process mechanisms

Damanpour

Magelssen

Walker

2019

Public Management Review

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The decision to outsource organizational activities is studied widely, but research on the aftermath of outsourcing decisions and the insourcing of outsourced activities is scarce. We study outsourcing decision as a process not an event, and investigate the influences of organizational mechanisms on its sustainability. We argue that organizational learning from the outsourcing decision process could over time result in competencies that would enhance the sustainability of outsourcing decisions. We examine outsourcing and insourcing processes longitudinally among 64 public services in 1,650 local governments across 25 years. The results from regression analysis generally support our theory that the outsourcing process mechanisms, especially the mechanisms associated with implementing the outsourcing decision, predict the occurrence of insourcing. We discuss the implications of our organizational behavioural study of outsourcing decisions for future research on outsourcing and insourcing of public services.

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“…First, in general, pooling of whole organizations via merger does not favor the fast and selective targeting of which assets or activities to pool for maximum gain (Hennart & Reddy, 1997;Reuer & Koza, 2000). Second, outsourcing to a party that generates efficiencies by pooling multiple clients' business can be attractive, but entails a loss of autonomy and competence (Jain & Thietart, 2014). Implementing a scale alliance requires making choices about capacity reduction, shifting and addition throughout the lifespan of the alliance.…”

Section: Background: Value In Public Organizations and Decision-makingmentioning

confidence: 99%

Fishing in troubled waters? Strategic decision‐making and value creation and appropriation from partnerships between public organizations

Oever

Martín

2018

Strategic Management Journal

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Research Summary Although partnerships have been conceptualized as vehicles for value creation, less is known about which partners appropriate more value out of them, especially among public organizations. We theorize how politics and procedural rationality in decision‐making respectively are associated with value creation and value appropriation from partnerships between public organizations. Analysis of data from the Dutch water authority sector (2008–2014) shows that organizations employing more politics in decision‐making appropriate more value from horizontal partnerships, whereas procedural rationality in decision‐making may enhance combined value creation but limits partner‐level value appropriation. Also as theorized, the collective decision‐making context constrains value appropriation by partners using a discrepant decision‐making approach. We discuss implications for research on public organizations, alliances, and strategic decision‐making. Managerial Summary Although much is known about how partnerships can create value for firms, we know relatively less about which of the partners can appropriate more value from them. In this paper, we theorize and find that (public) organizations that employ more politics in decision‐making can generally appropriate more value from partnerships. Organizations that are more procedurally rational, which entails the extensive collection and analysis of information to make decisions, are able to create more value for the partnership, but generally appropriate less value from the partnership. Moreover, an organization that has a different decision‐making approach than its partners' end up appropriating less value from the partnership. Thus, when forming partnerships, managers should carefully consider the way their potential partners make decisions.

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Capabilities as shift parameters for the outsourcing decision

Cited by 25 publications

References 31 publications

Review of the Empirical Business Services Sourcing Literature: An Update and Future Directions

Review of the Empirical Business Services Sourcing Literature: An Update and Future Directions

Outsourcing and insourcing of organizational activities: the role of outsourcing process mechanisms

Fishing in troubled waters? Strategic decision‐making and value creation and appropriation from partnerships between public organizations

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