The dilemma of outsourced customer service and care: Research propositions from a transaction cost perspective

Bon, Joël Le; Hughes, Douglas E.

doi:10.1016/j.indmarman.2009.03.008

Cited by 30 publications

(17 citation statements)

References 63 publications

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“…Much like organizational approaches to leveraging information systems (Palanisamy 2003), adopting customer relationship management software (Ahearne, Hughes, and Schillewaert 2007), managing customer care (LeBon and Hughes 2009), or even utilizing social media technologies (Ogilvie et al 2018), when organizations attempt to integrate resource intensive initiatives to combat environmental demands without the proper mechanisms, strategies, or support structures to supplement new processes, the positive effects of these initiatives will likely be subpar or even detrimental compared to expectations. While intended to increase adaptability and capture performance gains, all of the initiatives mentioned above stand testament to the fact that without a proper strategy and supporting processes, even the most effective techniques may miss the mark.…”

Section: Microfoundations Of Ambidexterity: Dynamic Capabilities and mentioning

confidence: 99%

When Sales Becomes Service: The Evolution of the Professional Selling Role and an Organic Model of Frontline Ambidexterity

Hughes

Ogilvie

2019

Journal of Service Research

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Building on new theoretical foundations in the professional selling domain, growing bodies of research on frontline ambidexterity, and an increasingly demanding and dynamic frontline role, this article advances frontline ambidexterity through three focal goals. We first provide an in-depth discussion of the evolution of the professional selling role. This foundation allows us to identify and explore the implications of a market-driven model of ambidexterity that can manifest organically within certain professional selling contexts. In so doing, we espouse a new model of individual-level ambidexterity—organic frontline ambidexterity. Next, we discern existing models of frontline ambidexterity (characterized as inorganic) and compare these to the organic model proposed. Finally, we provide an organizational framework of frontline ambidexterity enablement to provide context for organizations to best align and enable ambidexterity as a dynamic capability. We provide corresponding research questions in an effort to aid in the systematic expansion of frontline ambidexterity research.

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Section: Microfoundations Of Ambidexterity: Dynamic Capabilities and mentioning

confidence: 99%

When Sales Becomes Service: The Evolution of the Professional Selling Role and an Organic Model of Frontline Ambidexterity

Hughes

Ogilvie

2019

Journal of Service Research

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“…This may result in opportunism by the outsourcer which induces perverse incentives, aligning with the findings of Le Bon and Hughes (2009). This type of environment foments organizational politics (Eisenhardt andBourgeois 1988, Manning 2014).…”

Section: Unintended Consequencesmentioning

confidence: 59%

“…All but one of the six organizations who chose to outsource experienced considerable difficulties and frustrations with their decision. The anticipated savings were repeatedly not realized as there were many hidden costs (Barthélemy 2003, Larsen et al 2013, Le Bon and Hughes 2009, Manning 2014, Sharma 2012, Stringfellow et al 2008, Tate and van der Valk 2008), such as: having to replicate infrastructure to deal with quality assurance, workforce management, and customer complaint escalations (Le Bon and Hughes 2009, Ren and Zhou 2008, Sharma 2012, Stringfellow et al 2008, Tate and van der Valk 2008, Ueltschy et al 2006).…”

Section: Support For the Propositionsmentioning

confidence: 99%

Outsourcing contact centers: internal branding challenges and consequences

Preez

Bendixen

2019

JBIM

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Purpose The purpose of this paper is to develop a deeper understanding of the philosophy adopted by organizations in making the decision to outsource contact centers or not. Design/methodology/approach A phenomenological study was used to develop an understanding of industry participants’ experience of the outsourcing of contact centers in South Africa. Ten in-depth interviews were conducted. Content analysis identified key thoughts and common themes. This was used to develop a model for outsourcing. Findings Evidence was found to support three propositions developed from the literature regarding the reasons for and the unintended consequences of outsourcing. A model was developed to illustrate how costs can be reduced by outsourcing under different conditions of “headcount constraints” and “failure costs” of customer relationship management. Research limitations/implications The study was conducted in a single emerging market. Future research should confirm the validity of this model in other markets. Practical implications Outsourcing contact centers can lead to a loss of control over CRM and internal brand management. This can be avoided by paying considerable attention to the governance of the contract. There are two key messages for managers: to resist the short-term attraction of potential cost savings and marketing must play an active role in the outsourcing decision. Originality/value New knowledge is provided about the philosophy adopted by organizations when outsourcing contact centers. A model is presented to guide managers in the outsourcing decision-making process.

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“…In fact, a lower level of customer-oriented behaviors among partner organizations is not surprising, as many authors have warned that lack of customer-oriented behaviors is a possible hidden cost of outsourcing (e.g., Ross, Dalsace, & Anderson, 2005; Jennings, 2006; Le Bon & Hughes, 2009). However, some organizations make outsourcing decisions only on the basis of standard cost analysis ignoring other important factors such as differences in selling effectiveness between an in-house sales force and an outsourced sales force (Ross, Dalsace, & Anderson, 2005).…”

Section: Discussionmentioning

confidence: 99%

“…Le Bon and Hughes (2009) provided three categories as a rationale for outsourcing decisions including ‘anticipated cost savings, attempt to improve quality or expand services through contracted expertize, and a desire to focus internal resources on core competencies’ (p. 404). Of them, cost saving appears to be the dominant rationale considering that a consulting company's survey results indicated that 70% of the companies cited cost saving as a key cause for outsourcing (Deloitte Consulting, 2005).…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Outsourcing frontline functions and implications on customer-oriented behaviors: A case of a telecommunications company and its partners in South Korea

Song

Lee

2013

Journal of Management & Organization

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The purpose of this study is to examine whether outsourcing frontline functions warrants equivalent level of customer-orientated behaviors as provided by a principal organization, and, if not, what the causes of the differences are. A total of 753 frontline workers of a leading South Korean telecommunications company and its partner companies responded to a survey regarding their levels of customer-oriented behaviors, their supervisor's degree of customer orientation, and their organization's training on customer orientation. Structural equation models were then utilized to examine the proposed relationships. The results show that the frontline workers of the partner organizations have a significantly lower level of customer-oriented behaviors compared with those of the principal organization. The immediate supervisor's degree of customer orientation and customer-orientation training accounted for a significant amount of difference found between the principal and partner organizations.

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The dilemma of outsourced customer service and care: Research propositions from a transaction cost perspective

Cited by 30 publications

References 63 publications

When Sales Becomes Service: The Evolution of the Professional Selling Role and an Organic Model of Frontline Ambidexterity

When Sales Becomes Service: The Evolution of the Professional Selling Role and an Organic Model of Frontline Ambidexterity

Outsourcing contact centers: internal branding challenges and consequences

Outsourcing frontline functions and implications on customer-oriented behaviors: A case of a telecommunications company and its partners in South Korea

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