A process model of make-vs.-buy decision-making. The case of manufacturing software

Buchowicz, B.S.

doi:10.1109/17.65757

Cited by 42 publications

(30 citation statements)

References 29 publications

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“…This is obviously a long-term relationship rather than a one-off project as the typical life-span of critical enterprise software is often over 5 years (cf. Buchowicz, 1991;Dibbern et al, 2004;Pisano, 1990;Roberts & Berry, 1985). The effectiveness of communication in this aspect is determined through the ability of the communication process to reduce risks in information flow and enhance trust building.…”

Section: Introductionmentioning

confidence: 99%

Best Practices for Communication between Client and Vendor in IT Outsourcing Projects

Sharma¹,

Apoorva²,

Madireddy³

et al. 2008

JIITO

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It has been reported that outsourcing specialist knowledge work can enable business excellence by enhancing business competitiveness, economic value added service, quality, and market branding. Much of this may be supported by seamless technical communication flows between the vendors and clients of an outsourcing project. However, the potential loss of confidentiality, authority, and security are key factors organizations take into consideration before venturing into outsourcing. Developing an information communication platform which promotes a secure knowledge exchange culture in an environment conducive to trust is fundamental to mitigate these information risk factors. The empirical study reported in this paper investigated the central postulate that effective management of technical communication at every stage of executing an IT outsourcing contract reduces associated risks and establishes trust in an outsourcing relationship. The objective of the study was to provide knowledge managers with an insight into the effectiveness of communication flows for various outsourcing activities in order to support knowledge mobilization for effective service delivery. The field research was conducted through a survey of industry practitioners from vendor and client organizations with a sample size of 70+ respondents from 20+ organizations, about an equal number of clients and vendors. It is the intended contribution of this work to prescribe a socio-technical platform for professional technical communications between clients and vendors of outsourcing services that effectively manages information risks and the notion of trust arising from the project life-cycle.

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Section: Introductionmentioning

confidence: 99%

Best Practices for Communication between Client and Vendor in IT Outsourcing Projects

Sharma¹,

Apoorva²,

Madireddy³

et al. 2008

JIITO

View full text Add to dashboard Cite

show abstract

“…There has however been considerable research that has focused in turn on each of the four interfaces mentioned earlier. For example, research on the in-bound material supply chain is addressed directly under the umbrella of make-versus-buy by authors such as Buchowicz (1991), partnerships and relationships by and Macbeth and Ferguson (1994), Quinn and Hilmer (1994), Bruck (1995), Probert (1996), Lonsdale and Cox (1998) and strategic sourcing and supplier selection by writers including Greaver (1999). Similarly, the out-bound customer interface is covered in marketing literature by such authors as Jones and Clark (1990), Christopher (1992) and (1998), and to an extent by authors concerned with the design of physical distribution management channels, for example Stevens (1990) and Ballou (1998).…”

Section: Overview Of Previous Research Associated With the Strategic mentioning

confidence: 99%

“…Hence, Table 1 illustrates that the production supply interface is well covered in the literature. As previously mentioned, key authors include Buchowicz (1991), , Quinn and Hilmer (1994), Macbeth and Ferguson (1994), Bruck (1995), Probert (1996), Lonsdale and Cox (1998) and Greaver (1999). This range of contributions leads us to suppose that these upstream decisions are key to determining the strategic position of an organisation, and we have captured this significance in the following hypothesis:…”

Section: Stage 1: Formation Of the Theoretical Frameworkmentioning

confidence: 99%

Strategic positioning: an integrated decision process for manufacturers

Baines

Kay

Adesola

et al. 2005

International Journal of Operations &Amp; Production Management

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Strategic positioning of a manufacturer concerns choosing those service, production and supply chain related activities that an organisation should carry out internally, and those that should be external and under the ownership and control of suppliers, partners and customers. This paper describes research that has investigated how manufacturers make this decision and what, if any, are the characteristics of a successful approach to forming such decisions. Six UK manufacturing companies have been studied in-depth and, in each case, the decision making processes that practitioners actually apply have been explored, recorded and analysed. This study has revealed distinctly different styles of thinking across these companies. Based on this insight the paper proposes three key principles that manufacturers should adopt when forming strategic positioning decisions.

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“…To accomplish this objective, more and more organizations consider IT outsourcing from external service providers rather than pursuing in-house development, because outsourcing offers a variety of ways for organizations to better leverage their resources and focus on core applications to increase IT's value in the achievement of corporate objectives [Lacity and Willcock 2001] In the early stage, outsourcing issues were simply centered on acquisition. Organizations then considered outsourcing as a commodity and focused on the choice between internally developed technology and its external acquisition, or what we call the "make-or-buy decision" [Buchowicz 1991;Buck-Lew 1992;Welch and Nayak 1992]. The next issues are related to the motivation of outsourcing and the nature of outsourcing scope.…”

Section: The Evolution Of the Role Of It Outsourcingmentioning

confidence: 99%

Outsourcing Alignment with Business Strategy and Firm Performance

Lee¹

2006

CAIS

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As motivations of Information Technology (IT) outsourcing are evolving from a primary focus on cost reduction to an emerging emphasis on improving business performance, it is imperative for organizations to align their outsourcing strategy with their business strategy in order to reap better outsourcing benefits and firm performance. Accordingly, a critical challenge facing organizations is how to effectively organize and manage a well-planned outsourcing strategy in accordance with the direction of a business strategy. With the premise that organizations with the fit between business strategy (i.e., defenders, prospectors, and analyzers) and outsourcing strategy (i.e., independent, arm's length, and embedded strategies) are expected to have better outsourcing benefits and organizational performance than those without such fit, this study seeks to answer the following questions: First, are certain outsourcing strategies more effective than others in particular business strategies?; Second, do their effective alignments positively affect outsourcing benefits and firm performance? To answer these questions, we hypothesize three theoretically feasible sets of internally congruent patterns between business strategy and outsourcing strategy which lead to a greater achievement of outsourcing benefits and firm performance as compared with misfit patterns between them. Empirical data gathered from 136 organizations in Korea that have outsourced their IT functions to external service providers are analyzed. The empirical evidence shows that outsourcing alignment with business strategy significantly influences the outsourcing success and firm performance of defenders, analyzers, and prospectors. The findings have significant implications for further research and practice.

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A process model of make-vs.-buy decision-making. The case of manufacturing software

Cited by 42 publications

References 29 publications

Best Practices for Communication between Client and Vendor in IT Outsourcing Projects

Best Practices for Communication between Client and Vendor in IT Outsourcing Projects

Strategic positioning: an integrated decision process for manufacturers

Outsourcing Alignment with Business Strategy and Firm Performance

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