The Impact of Business Process Outsourcing on Firm Performance and the Influence of Governance: A Long Term Study in the German Banking Industry

Fritsch, Markus; Wahrenburg, Mark; Hackethal, Andreas; Wuellenweber, Kim

doi:10.2139/ssrn.1076422

Cited by 6 publications

(3 citation statements)

References 46 publications

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“…There is a need to incorporate a more diverse range of inter-organisational relationships and environments across the key dimensions studied in this paper, allowing more detailed exploration of patterns of emergence and co-evolution associated with management control practice. Third, there is limited investigation of interaction between organisational design, management control and financial performance (Fritsch et al, 2007). Future development of quantitative modelling, highlighted in Schneider and Somers (2006), may facilitate the identification of emerging patterns of performance.…”

Section: Discussionmentioning

confidence: 99%

Outsourced supply chains as a complex adaptive system

Rooney

Cao

2019

MEDAR

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Purpose Firms in the early stage of their organisational lifecycle (ESFs) are subject to concerns founded on a requirement for strategic flexibility, prompting engagement in inter-organisational relationships such as outsourcing. However, studies of the management control dynamics of these relationships are rare. This paper aims to respond by empirically examining the influence of ESF managers on the ongoing management control of such relationships. Design/methodology/approach A single outsourcing case study is utilised to provide evidence in examining a multi-theoretical framework that adopts a complex adaptive system (CAS) perspective as a qualitative analytical framework, along with the existing accounting theory on control adoption. Findings Focused on management concerns with tensions between inter-organisational control and strategic flexibility, this paper identifies reasons for the adoption of management controls by an ESF. The inter-organisational system explored in this paper emphasises the importance of adopting a holistic epistemology in understanding changes in control adoption. Research limitations/implications This paper extends current theoretical perspectives on control adoption to consider the inter-organisational control concerns of ESF managers. Practical implications The insights identified in this paper provide a systemic framework to identify potential organisational and environmental influences on control problems, emphasising environmental co-evolution rather than achievement of ideal equilibrium states. Originality/value The intended contribution is to extend the management control literature to consider the effect of organisational lifecycle on the adoption of new inter-organisational management controls in the wake of ongoing trade-off between competing inter-organisational requirements.

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Section: Discussionmentioning

confidence: 99%

Outsourced supply chains as a complex adaptive system

Rooney

Cao

2019

MEDAR

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“…Other authors also claimed that reducing less significant investments increases ROA (Lynch, 2004). On the other side, some others argue the opposite (Espino-Rodrigez and Padron-Robaina, 2004;Fritsch et al, 2007), that outsourcing has no effect on ROA. For us, the claim of Espino-Rodrigez and Padron-Robaina was particularly challenging because their study was conducted on a very similar sample to ours, namely tourist organizations.…”

Section: Overview Of Current Researchmentioning

confidence: 99%

The impact of organizational virtuality on financial effectiveness

Manzin

Bavec

2013

Kybernetes

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Purpose -The research focused on the question how the authors could assess the impact of organizational virtuality on financial efficiency using primary data from company accounting records. The paper aims to discuss these issues. Design/methodology/approach -The implemented model was based on the assumption that the authors could define virtuality with the joint effects of outsourcing and IT utilization. The authors also assumed that they could define virtuality with available financial indicators. The authors tested the model on a sample of tourist organizations in Slovenia. The main methodological challenges were hidden by diverse methods in calculating and keeping financial records in individual organizations. In some cases, the authors had to recalculate and adjust individual indicators in the particular company to make them methodologically comparable with others. As the modeling and testing tool the authors used structural equation modeling with two latent variables: organization virtuality and financial effectiveness. Findings -The authors confirmed the basic research hypothesis that higher organizational virtuality leads to higher financial effectiveness in studied organizations. The authors also confirmed that they could develop a functional model of organizational virtuality on financial data only. However, the authors concluded that accuracy of the model could be improved if the authors would include also nonfinancial data that would provide a more holistic model of virtual organization. Practical implications -The authors recognized that general concepts of organizational virtuality were often too academic and unpractical for managers in the real business. Therefore, the authors argued that financial indicators would provide managers with more convenient and management-like tools for assessing the level and the impact of virtuality. Originality/value -Modeling organizational virtuality with financial indicators only extended the perception of virtuality and provided some original research and practical guidelines.

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“…Extending beyond information technology (IT) services to encompass business processes such as transaction processing, human resource management, and accounting and finance, outsourcing is seen as an important means to improve organisational effectiveness and efficiency. Key benefits of outsourcing include: reducing operating costs (Lacity and Hirscheim 1993); allowing a focus on core activities and competencies (Quinn and Hilmer 1994; Benko 1993; Antonucci et al 1998); and, greater flexibility (Fritsch et al 2007).…”

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confidence: 99%

Contractual and Accounting Controls in Outsourcing Agreements: Evidence from the Australian Home Loan Industry

Rooney

Cuganesan

2009

Australian Accounting Review

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The objective of the article is to examine the contract–accounting control relationship in an outsourcing context and, specifically, issues such as the extent to which contracts and accounting are jointly implemented and integrated in managing supplier relationships. Through an exploratory analysis of outsourcing arrangements in the Australian home loan industry, the study finds that the contracts examined provided a broad relationship frame rather than controls that could be utilised to manage the relationship. Also, accounting controls were only implemented once the outsourcing relationship was underway. Finally, accounting controls operated independently of the contract in two of the three cases examined.

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The Impact of Business Process Outsourcing on Firm Performance and the Influence of Governance: A Long Term Study in the German Banking Industry

Abstract: Abstract

Cited by 6 publications

References 46 publications

Outsourced supply chains as a complex adaptive system

Outsourced supply chains as a complex adaptive system

The impact of organizational virtuality on financial effectiveness

Contractual and Accounting Controls in Outsourcing Agreements: Evidence from the Australian Home Loan Industry

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