IT outsourcing success: A dynamic capability-based model

Karimi-Alaghehband, Forough; Rivard, Suzanne

doi:10.1016/j.jsis.2020.101599

Cited by 46 publications

(24 citation statements)

References 75 publications

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“…The dynamic capabilities can affect the portfolio of a firm's IT resources through new solutions, new vendors and new interdependencies (Karimi-Alaghehband and Rivard, 2020). A firm's dynamic capability allows taking advantage of sensing, acquisition and merger business opportunities (Li and Chan, 2019).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability

Ilmudeen

2021

BIJ

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PurposeWith the ever-growing turbulent business setting, there is a great interest to study how a firm tailors information technology (IT) capability to shape agility and innovation capability to stay ahead of the competition. This study examines how IT governance and IT capability can be tailored to achieve firm performance through agility and innovative capability in a turbulent environment.Design/methodology/approachDrawing on the dynamic capability theory, this study based on the primary survey data of 253 responses from senior IT and business executives in China proves the hypothesized relationship in the proposed model.FindingsThis study shows that the IT governance mechanism positively impacts on IT-enabled dynamic capabilities. Further, IT-enabled dynamic capabilities positively impact on agility and innovative capability that in turn support to achieve firm performance. The environmental uncertainty is only significant in the IT-enabled dynamic capabilities–business process agility relationship.Research limitations/implicationsThis study suggests corporate leaders and executives to better exploit their resources and tailor IT capabilities in the turbulent environment. Further, this study offers theoretical and practical implications.Originality/valueThis study proposes ways for executives to examine the multifaceted nature of environmental uncertainty to achieve agility, innovation and firm performance rather than simply investing in IT.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability

Ilmudeen

2021

BIJ

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“…It also allows one to look for possible areas of improvement or replacement of the outsourced business model for a more efficient operation and quick and complete achievement of the long-term goals. To do this, it is necessary to determine the necessary specific conditions for changing the outsourcing business model (Karimi-Alaghehband & Rivard, 2020 ).…”

Section: Discussionmentioning

confidence: 99%

Economic Efficiency of Outsourcing Business Models: A Comparative Assessment

Kulembayeva

Seitkaziyeva

Yelshibayev

2021

Glob J Flex Syst Manag

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This study aims to form a methodological approach to assess outsourcing business models and identify the most acceptable one for a modern enterprise. The research methodology is based on the author's approach, which includes cognitive map analysis and a simplicial complex. The study was tested on two Information Technology companies in Russia. Based on the determination of the profit elasticity on the manageable vertices of outsourcing business models, the most attractive in terms of efficiency criterion in the form of profit is the outsourcing business model of developing in-house non-IT services. The analysis of structural connectivity made it possible to rank the factors by the level of importance for the preservation of the business model. Modeling the effectiveness of implementing the formed outsourcing business models provided an opportunity to increase profits for the investigated IT companies by increasing the number of single-type projects. The conducted modeling of changes in relations with customers in the studied IT enterprises shows the inexpediency of changing customer relations in BM3. It is proved that certain factors can be replaced without losing the integrity of the business model. The scientific contribution of this study is the proposed methodological approach for assessing the effectiveness of an outsourcing business model. Based on the application of this methodology, the strategic objectives are linked to the business model in the process of achieving them (the achievement of strategic objectives under the influence of the selected outsourcing business model is shown).

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“…At first, firms with higher contracting capability will behave better in writing contracts, recognizing opportunistic behavior, negotiating and so on, which makes outsourcing preferable (Fabrizio, 2012;Jain and Thietart, 2014;Karimi-Alaghehband and Rivard, 2020). In addition, higher technical capability also serves as a support to reducing transaction hazards.…”

Section: Outsourcing From Transaction Costs Versus Capabilitymentioning

confidence: 99%

Influencing factors of outsourcing in construction projects: a holistic perspective

Chen

et al. 2022

IJMPB

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PurposeThis study aims to first identify influencing factors of outsourcing decisions in construction projects systematically and further to unravel the interactions of these influencing factors from a holistic perspective.Design/methodology/approachThis study concerns the design and analysis of two-stage studies, where, at the first stage, a systematic literature review and 48 semi-structured interviews with senior practitioners in construction firms were conducted to identify influencing factors in outsourcing decisions in construction projects. At the second stage, the decision-making and trial evaluation laboratory (DEMATEL) method was employed to explore the interactions between influencing factors and pathways of outsourcing decisions.FindingsThree focuses for outsourcing decisions are outlined, revealing that outsourcing restrictions, strategic needs and cost objectives need to be considered in outsourcing decisions. In addition, the finding contributes to the integration of transaction costs perspective and capability perspective by unravelling the mechanism of how different factors work together.Practical implicationsThis study outlines 18 influencing factors and three sequential focuses for outsourcing decision-making, providing a clearer understanding of each factor’s contribution for decision-makers.Originality/valueMost of the existing studies stressed the net effect of individual outsourcing factors from a single logic and paid little attention to their complex causal relationship. This study develops a holistic perspective of the influencing factors of outsourcing in construction projects by contending the overall knowledge of outsourcing and analyzing the causal relationship between them.

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IT outsourcing success: A dynamic capability-based model

Cited by 46 publications

References 75 publications

Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability

Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability

Economic Efficiency of Outsourcing Business Models: A Comparative Assessment

Influencing factors of outsourcing in construction projects: a holistic perspective

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