Empirical Verification of Relationship Between Organizational Boundaries, Business Model Change and Outsourcing Scope and Maturity

Abstract

Purpose: The goal of the paper is to present the research results on empirical verification of a model of relationships between, the premises of organizational boundaries change, outsourcing`s scope and maturity, outsourcing`s effectiveness and the level of business model modification. Design/methodology/approach: The research sample was purposive and included 281 Polish companies. The main research tool was a survey questionnaire, supported by the CATI technique. To verify the model, the Structural Equations Modelling (SEM) method was used. The research was based on the Business Model Canvas framework, as well as author`s concept of outsourcing maturity characteristics. Findings: The results confirmed the existence of relationships between all the phenomena included within the research model, the only exception being the impact of outsourcing scope on its effectiveness. Specifically, the research proved the impact of outsourcing effectiveness on the level of business model changes in surveyed enterprises, as well as a strong relationship between outsourcing maturity and its effectiveness. The research enabled to identify outsourcing not only as a tool of organizational boundaries change, but also as one of the key methods of business model adaptation and alteration. Practical implications: The research indicates the need for extending the field of analysing outsourcing`s impact on the shape of the business model to adjust the scope and the outsourcing process to changes taking place in the enterprise, as well as its environment. Originality/value: The research can be used to develop future research directions, such as a more detailed explanation of the way outsourcing impacts the process of business model innovation.

Drivers and risk of business process outsourcing in South African mobile telecommunication industry

“…BPO refers to the practice of contracting the operations of a specific business process (e.g. IT, human resources, financial guidance, accounting and procurement) to an external service provider (Drzewiecki, 2021;Ge et al, 2021). This research adopted Knowledge Process Outsourcing (KPO), Business Process Outsourcing (BPO), and Information Technology Outsourcing (ITO), technology process outsourcing and MIS outsourcing as the types of contracting out of services for this investigation.…”

“…As companies attempt to save expenses and specialize in limited core activities, business process outsourcing becomes a strategic priority (Drzewiecki, 2021;Hanafizadeh & Zare Ravasan, 2018;Mbanje & Lunga, 2015). Corporate reorganizations, more demanding customers, improvements in ICTs and offshoring, have all fuelled the growth of outsourcing of IT (Information technology) (Gerbl et al, 2016).…”

Economic Efficiency of Outsourcing Business Models: A Comparative Assessment

“…In the modern literature on management, the outsourcing model has the following characteristics: First, it includes the separation of the company's functions and transferring them to other business entities for implementation (Mussapirov et al, 2019 ); Secondly, there is a shift of responsibility to external suppliers for the availability of the enterprise’s goods and services (Drzewiecki, 2021 ); Thirdly, the strategic use of external means for the implementation of actions carried out traditionally by the enterprise's personnel, who use internal means of the enterprise. This characteristic of the outsourcing business model is the allocation of certain support functions (non-core) from the organizational structure and entrusting their implementation to specialized, external organizations.…”

“…Secondly, there is a shift of responsibility to external suppliers for the availability of the enterprise’s goods and services (Drzewiecki, 2021 );…”