Offshore outsourcing of innovation by SMEs: a 4F perspective of governance

Seepana, Chandrasekararao; Khraishi, Ahmad; Paulraj, Antony; Huq, Fahian Anisul

doi:10.1108/scm-09-2020-0486

Cited by 9 publications

(6 citation statements)

References 112 publications

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“…We made 1,212 telephone questionnaires and obtained 251 valid responses. The resulting response rate of 20.7% is similar to that in recent research on SME outsourcing (Seepana et al , 2021) or KIBs (Lee and Miozzo, 2019). Because accessing managers is increasingly difficult, this response rate is adequate (cf Benitez et al , 2018; Braojos et al , 2020).…”

Section: Methodssupporting

confidence: 82%

IT vendor integration as catalyst of IT outsourcing success

Navarro-Paule

Romerosa-Martínez

Montes

2023

JBIM

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Purpose This paper aims to explain how small- and medium-sized firms (SMEs) create information technology (IT) business value through blended IT outsourcing (ITO). The explanatory framework it proposes enables SMEs to replicate IT capability outcomes (i.e. enhance their economic, strategic and technological competences, namely, ITO success) by endorsing an ITO strategy catalyzed by IT vendor integration. Design/methodology/approach This study uses covariance-based structural equation modeling to test the proposed research model. Data are collected from 251 knowledge-intensive business SMEs located in Science and Technology Parks in Spain. Findings The results demonstrate empirically that SMEs can replicate IT capability benefits (i.e. enhance their non-IT competences) through blended ITO in which IT, conceptualized as a transversal supporting activity, is outsourced to an IT vendor while the value creation process remains with the buyer. The integration (i.e. process integration and information sharing) of an IT-proficient vendor catalyzes ITO success. More specifically, the results show that, although process integration is not directly related to competence enhancement, fosters information sharing, which directly facilitates ITO success. The results also show that IT vendor proficiency accounts for ex ante trust. Practical implications Managers should think of transformational ITO as a strategy to enhance firm competences. For blended ITO strategies to succeed, managers must have a comprehensive understanding of the business they run, as it is important to create conditions that foster inter-firm information sharing. To achieve these conditions, managers should take special care in selecting boundary spanners, who are the pivotal links in competence enhancement. Originality/value While most research focuses on ongoing trust (i.e. trust develops as ITO evolves), this study focuses on initial (i.e. ex ante) trust and analyzes IT vendor proficiency (expert, experienced and reputed) to examine trust as an antecedent of ITO. This study also draws on previous conceptualizations of vendor integration to develop and analyze a two-step integration model to explain how IT vendor integration (i.e. process integration and information sharing) catalyzes enhancement of the buyer’s non-IT competences. This study focuses on SMEs, which are often neglected in ITO studies.

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Section: Methodssupporting

confidence: 82%

IT vendor integration as catalyst of IT outsourcing success

Navarro-Paule

Romerosa-Martínez

Montes

2023

JBIM

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“…Recently, there has been a growing trend toward using panel services provided by various companies, including Qualtrics, for the purpose of gathering survey or experiment data within the OSCM field (Kaufmann et al , 2018; Bentley et al , 2022; Seepana et al , 2022a; Seepana et al , 2022b). Unlike the participants in conventional surveys, online panelists are often perceived to be primarily motivated by incentives rather than a genuine intention to provide high-quality responses and, consequently, more inclined to display three common response patterns: speeding through the survey, random guessing and providing responses in a straight-line manner (Smith et al , 2016).…”

Section: Methodsmentioning

confidence: 99%

Managing supplier sustainability risk: an experimental study

Hajmohammad

Klassen

Vachon

2023

SCM

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Purpose Buying firms are increasingly exposed to sustainability risk arising from negative conditions or potential events in their supply base that might provoke adverse stakeholder reactions. Procurement managers at these firms can pursue multiple strategies to address this risk with suppliers, including acceptance, monitoring-based mitigation, avoidance and collaboration-based mitigation. This study aims to investigate how perceived risk, supplier dependence and financial slack resources contribute to the strategic preferences of these managers. Design/methodology/approach A vignette-based experiment with procurement managers is used to examine the factors affecting the managers’ strategic preferences in managing supplier sustainability risk. Findings The empirical results revealed that the procurement managers’ preference for avoidance or collaboration strategies was stronger when they perceived higher risk, but their preference varied based on the degree of supplier dependence. Specifically, when they perceived a high level of risk, procurement managers were more inclined toward a monitoring strategy with dependent suppliers and preferred an avoidance strategy when they dealt with independent ones. Financial slack was also an influential factor: managers with more slack at their disposal preferred to collaborate with suppliers to address the risk; on the other hand, limited slack shifted their preference toward an acceptance strategy, regardless of the level of risk. Originality/value This study helps to develop a more nuanced picture of how procurement managers make challenging and complex trade-offs when responding to supplier sustainability risk.

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“…Existing literature suggested that good partnerships can be effective in increasing contract flexibility and improving project management performance [27]. Seepana et al [28]found through a case study that good relationship governance between the contractors can expand the openness of the contract and increase the flexibility of the contract. Dyer and Chu [29]proposed that contract flexibility in the contracting process, which enables flexible alignment of the parties' interests in response to new changes or uncertainties, can help develop good relationships and strengthen trusting relationships.…”

Section: Analysis Of Key Factors Affecting the Evolution Of Trust Levelmentioning

confidence: 99%

Mechanistic analysis of the evolution of trust level between owner and PMC contractor based on dynamic Bayesian network

Hongyan,

BARI,

Aobo

2023

Preprint

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The PMC project advocates a non-confrontational cooperation model. As an extension of the owner, the PMC contractor manages the project in all aspects and processes on behalf of the owner, and the level of trust between the two parties determines effectiveness of management, which in turn affects the success or failure of the project. This paper adopted a dynamic Bayesian network approach, based on social exchange theory, to establish a dynamic model of the evolution of trust level between owners and PMC contractors, and used the two-way inference function of dynamic Bayesian network to identify the key indicators and dynamic evolution law of trust level. The results of the study indicated that the trust level between the owner and the PMC contractor depends mainly on the level of calculative and relational trust, and that the most important drivers of calculative and relational trust are the reciprocal behaviors and contractual flexibility. In addition, the reciprocal behaviors has a greater driving effect on the promotion of relational trust, and the contract flexibility has a greater driving effect on the promotion of calculative trust. Also, the level of calculative trust is higher in the early stage of project implementation, and the more calculative trust is generated, the more relational trust is generated in the middle and later stages. In the middle and later stages of the project, the importance of relational trust gradually increases and surpasses that of calculative trust, and the decline of relational trust has a greater negative impact on the overall trust level than calculative trust.

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Offshore outsourcing of innovation by SMEs: a 4F perspective of governance

Cited by 9 publications

References 112 publications

IT vendor integration as catalyst of IT outsourcing success

IT vendor integration as catalyst of IT outsourcing success

Managing supplier sustainability risk: an experimental study

Mechanistic analysis of the evolution of trust level between owner and PMC contractor based on dynamic Bayesian network

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