Examining Managerial Preferences and Choices: The Role of Value Creation and Value Appropriation Drivers in Strategic Outsourcing

Designing Global Sourcing Strategy for Cost Savings and Innovation: A Configurational Approach

“…Global innovation outsourcing and global innovation hub strategy suggest that the level of control is particularly important when innovation, which is often more tacit in nature as well as difficult to identify ex-ante, is expected in global sourcing activities. This finding is consistent with Lumineau and Quelin's (2012) argument on the importance of value capture mechanism in a complicated relationship which the allocation of rents is ambiguous (see also Lin et al 2016). Given the equifinality in our findings, we suggest that future studies consider the effect of a governance mode not by itself but in combination with the degree of disaggregation and dispersion in order to determine the global sourcing configuration that yields the optimal expected outcome.…”

“…More specifically, firms included in Configuration 2 achieve high innovation outcome through the presence of highly dispersed value chain combined with the presence of high cultural dispersion and high level of control. Firms exhibiting a global innovation hub strategy leverage on the balance between maximizing creative idea generation through cultural diversity (Leiponen and Helfat 2010) and ensuring value capture through a captive governance model (Lin et al 2016;Roza et al 2011).…”

Partial least squares structural equation modeling-based discrete choice modeling: an illustration in modeling retailer choice

“…A variety of analytical approaches have been applied; aimed at trying to specify the relative impact of these attributes empirically so that to understand and predict choices based on these attributes. For example, discrete choice modeling (DCM; Louviere et al 2000) has been applied to understand the impact of revenue management and loyalty program attributes on travelers' purchasing choices (Mathies et al 2013), of value creation and value appropriation attributes on managers' outsourcing choices (Lin et al 2016) and of location attributes on foreign direct investment choices (Buckley et al 2007). Then, as one of the alternative approaches, partial least squares structural equation modeling (PLS-SEM;Lohmöller 1989;Sarstedt et al 2017a;Wold 1982) has been employed to explain and predict the impact of attributes such as expected return and asset familiarity on choice of investment portfolio (Seetharaman et al 2017), ease of use and trustworthiness on intentions to use consumer-generated media for travel planning (Ayeh et al 2013) and price and convenience on, ultimately, intentions to purchase travel online (Amaro and Duarte 2015).…”

“…Therefore, combining the quality of DCE data with the analysis features of PLS-SEM represents a useful approach to assess discrete choices and specifically, when the underlying decision making-irrespective of whether rational, optimizing or pragmatic, heuristic-requires understanding of relative attribute impacts rather than attribute level effects. Moreover, although not explored in this article, DCM, which that employs PLS-SEM to DCE data, provides a basis when, for example, incorporating latent class analyses methods to reveal differences in decision-making as it applies to managers themselves (Lin et al 2016) and a variety of their stakeholders such as alliance partners (e.g., Gudergan et al 2016) or customers (e.g., Mathies et al 2013).…”

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

“…In turn, both the shape of outsourcing process and the way it is managed will affect the costs of implementing this method, which will also translate into the possibility of capturing the value created with the participation of an outsourcing partner in each case. The aforementioned relationship between the processes of value creation and capture, confirmed by numerous research results (Amit and Zott, 2001;Foss and Foss, 2005;Lin et al, 2016;Mayer and Salomon, 2006;Verwaal et al, 2008; indicates, that outsourcing decision-making requires simultaneous consideration of issues related to value creation and transaction costs, since both of these aspects are closely related.…”