Implications of service processes outsourcing on firm value

Lee, Ruby P.; Kim, Dae-Kwan

doi:10.1016/j.indmarman.2010.01.002

Cited by 42 publications

(24 citation statements)

References 51 publications

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“…Transaction type is the type of work, usually operationalized as a categorical variable, such as delineating among transactions involving development, maintenance, and reengineering work (e.g., Gopal and Koka, 2010) or between ITO and BPO (e.g., Lee and Kim, 2010). In the current study, 19 different types of services were examined across all the studies (see Table 4).…”

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

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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: 99%

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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“…Despite recent growth in service outsourcing, the benefits and disadvantages to organizations are still debatable (Lee and Kim, 2010;Bals and Turkulainen, 2017). Problems such as sacrificed service quality, accountability issues and poor service coordination, reduced flexibility and risk of information leakages have been raised by both private and public sector organizations (Lee and Kim, 2010;Rho, 2013). Additionally, costs may even increase despite the opposite goal (Kremic et al, 2006).…”

Section: Introductionmentioning

confidence: 99%

Service outsourcing decisions – a process framework

Taponen

Kauppi

2020

JGOSS

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Purpose The purpose of this paper is to compare service outsourcing decisions between public and private organizations and against a theoretical decision-making framework to both understand differences across the sectors and to provide an outsourcing framework more suitable specifically for outsourcing (and for the public sector). Design/methodology/approach Multiple case studies, i.e. a study of phenomena (here outsourcing process) at various sites is used as an approach. Findings Findings indicate that public sector organizations are trailing behind private sector organizations in how the decision-making process is conducted and resourced. The authors suggest regular evaluation of service functions internally as a starting point for the outsourcing service decision-making process. Additionally, the market analysis should be done prior to cost analysis and benchmarking as the availability of suppliers more qualified than the internal process defines the make or buy decision. Research limitations/implications The newly developed framework based on empirical evidence includes the following phases: regular evaluation of service functions, market analysis, cost analysis and benchmarking and evaluating relevant service activities. Applying the framework improves the efficient delivery of outsourced public services and brings public sector outsourcing closer to the professionalism currently present in the private sector. Originality/value Choosing between in-house and outsourced service delivery is a fundamental decision in both private and public sector organizations. Previous outsourcing research has mostly focused on the private sector, with limited focus on the public sector’s outsourcing processes, yet understanding of the service outsourcing process is important in ensuring organizational competitiveness and cost efficiency.

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“…These results further support Zeng et al ledge is greater because it means that the company's products will not be market-oriented, and not using customer knowledge will limit innovation. Second, Lee and Kim (2010) [80], Anne and Salminen (2010) [81], and Reimann et al…”

Section: Research Conclusion and Theoretical Contributionsmentioning

confidence: 97%

Research on the Effect of External Resource Acquisition on Process Innovation

Ding¹,

Huang²

2019

OJBM

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In the past, research on the effect of external resource integration on technological innovation focused on product innovation, and process innovation was largely ignored due to its silence. The study takes the high-tech manufacturing industry in China's Bohai Rim, Yangtze River Delta and Pearl River Delta regions as a sample, and empirically analyzes the impact of government support, industry-university-research knowledge integration, and customer knowledge integration on corporate process innovation. The study found that: 1) government support can significantly promote process innovation, industry-university-research knowledge integration, and improve corporate performance. 2) The industry-university-research knowledge integration has a relatively significant positive impact on process innovation, but has no significant impact on firm performance. 3) Customer knowledge integration negatively affects process innovation and has no significant impact on firm performance.

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Implications of service processes outsourcing on firm value

Cited by 42 publications

References 51 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

Service outsourcing decisions – a process framework

Research on the Effect of External Resource Acquisition on Process Innovation

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