Fit between sourcing capabilities and organisational structure on IT outsourcing performance

Plugge, Albert; Bouwman, Harry

doi:10.1080/09537287.2011.648489

Cited by 14 publications

(10 citation statements)

References 39 publications

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“…Current research on supplier selection explored the impact of perceived contextual and risks factors of selected supplier's capabilities and performance on the outsourcing firm performance (Lockamy and McCormack 2010, Koufteros, Vickery, and Dorge 2012, Kenyon, Meixell, and Westfall 2016, Dupont et al 2018, Ishizaka and Lopez 2018. For example, it was reported that potential outsourcee's lack of human resources management capabilities, mismatch in organizational culture and poor level of IT integration can be of detrimental effect on the future of the outsourcing relationship (Pawar and Rogers 2013, Plugge and Bouwman 2013, Handley and Angst 2015.…”

Section: Discussionmentioning

confidence: 99%

Contextualisation of the complexity in the selection of developing country outsourcees by developed country outsourcers

Pawar

Huq

Khraishi

et al. 2018

International Journal of Production Research

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Outsourcing research has recognised that selecting the right offshore supplier (outsourcee) in low-cost distant developing countries is complex, but central to outsourcing success. More specifically, the combination of outsourcee contextual internal factors (e.g. capabilities) with outsourced-to country contextual external factors (e.g. political, legal, economic, socio-cultural) as two fundamental and interconnected decisions firms make when outsourcing remains an underexplored research gap. Therefore, through a rigorous three-tier qualitative approach we, firstly, develop a contextual Environmental Separation Index (ESI) decision tool to help outsourcing firms in making more informed decisions when selecting outsourcees and outsourcing locations. Secondly, we operationalise the ESI as intuitive and easy to use decision tool, yet with a provision to deliver a truly context proof outsourcee selection decision. Thirdly, we adopt a complexity theory lens to explain that narrowing the contextual outsourcer-outsourcee gap facilitates a mind-set shift in outsourcing relationships from hierarchies to networks and from controlling to empowering developing country outsourcees. We show from a complexity theory perspective how contextual separation gaps between developed country outsourcers and developing country outsourcees can be an effective way to grasp the evolutionary path of outsourcing relationships.

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Section: Discussionmentioning

confidence: 99%

Contextualisation of the complexity in the selection of developing country outsourcees by developed country outsourcers

Pawar

Huq

Khraishi

et al. 2018

International Journal of Production Research

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“…The resulting analytical narratives have been presented here impartially, but it is important to note that since their generation was heavily reliant upon information provided by the client's representatives, it is conceivable that key vendor perspectives were not been captured quite well enough. As the literature notes, vendor viewpoints provide an invaluable foil to client perspectives in acquiring better understandings of relationship intricacies (Levina & Ross, 2003;Plugge & Bouwman, 2012;Plugge, Wijers, & Wagenaar, 2008).…”

Section: Implications and Discussionmentioning

confidence: 99%

A case study of morphogenetic change in long-term offshoring

Mirani

2013

International Journal of Information Management

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This paper applies a morphogenetic change framework to the case study of a financial information services provider's relationships with offshore IT application vendors over a six year period, in order to discover the underlying causal mechanisms. The analysis finds the progression to have consisted of a sequence of three major organizational changes, where each change was characterized by a morphogenetic cycle of three phases -Structural and Cultural Conditioning, Socio-Cultural Interactions, and Structural and Cultural Elaboration. In the first phase of each change cycle, structural and cultural outcomes of antecedent cycles conditioned the context as perceived by managerial actors. In the second phase, these conditioning factors interacted with the organization's prevailing socio-cultural dynamics to influence managerial decisions and to effect change. Finally, in the third phase, the emergent consequences of their decisions further altered the structural and cultural landscape, thus conditioning the context for the subsequent change cycle. While the specific organizational mechanisms activated varied from one cycle to the next, the overall analysis collectively revealed the company's quest for more effective vendor relationships. It was seen to have struggled with inconsistencies in its view of a captive vendor's role in the first cycle, and a lack of standard processes with multiple vendors in the second cycle, before establishing closer, comprehensive, successful relationships with two vendors in the third cycle. These findings serve to validate the utility of the morphogenetic analytical framework in uncovering change factors unique to specific offshoring contexts.

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“…Similarly, in their study in the Netherlands, Plugge and Bouwman (2012) explored the fit between IT outsourcing capabilities and organizational structure and the impact that this had on sustainable IT outsourcing performance from the suppliers' perspective. The findings of the study revealed that suppliers who emphasized fit were more capable of monitoring when they had achieved a sustainable performance.…”

Section: Discussion On Business Value Of It For Selected Articles Tramentioning

confidence: 99%

Guest editorial: information technology-enabled supply chain management

Wamba

Akter

Coltman

et al. 2015

Production Planning & Control

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It is widely accepted that advances in information technology (IT) will generate new opportunities when suppliers, business partners and customers work together to co-create and co-produce value. However, results from prior studies show that the mere possession of IT is unlikely to generate business value. Rather, IT creates value when information -frequently produced by IT infrastructure -is used to support complementary organizational and human resources. Still, the hypothesis that greater investment in IT will generate business value requires caution. The focus of this special issue is to extend our understanding of how firms in a supply chain create and capture business value with IT. Also, a review is provided of the IT business value literature in the journal Production Planning & Control: The Management of Operations. This literature is grouped into three types of business value: transactional, strategic, and transformational. The review justifies the importance of this special issue by highlighting the dearth of research on the topic in this journal. Lastly, future research directions are provided and this introduction concludes with a guide to the papers in this special issue.

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Fit between sourcing capabilities and organisational structure on IT outsourcing performance

Cited by 14 publications

References 39 publications

Contextualisation of the complexity in the selection of developing country outsourcees by developed country outsourcers

Contextualisation of the complexity in the selection of developing country outsourcees by developed country outsourcers

A case study of morphogenetic change in long-term offshoring

Guest editorial: information technology-enabled supply chain management

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