Outsourcing and Insourcing Organizational Services: Operational Capabilities &amp; Strategy Recurrence

Damanpour, Fariborz; Magelssen, Catherine; Chiu, Holly H.

doi:10.5465/ambpp.2013.13137abstract

Cited by 3 publications

(2 citation statements)

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“…In this regard, the results indicate that firms will insource functions to support achievement of near-term financial objectives. Indeed, although literature suggests strategic implications of the insourcing decision (Damanpour et al, 2013;Schniederjans et al, 2015), the current research suggests that strategic considerations are often subordinated to addressing a short-to medium-term problem. While there were some examples where firms made insourcing decisions in response to changes in the internal environment, the preponderance of the data suggests that insourcing is often a response to a specific external trigger event.…”

Section: Discussionmentioning

confidence: 81%

Bring it back? An examination of the insourcing decision

Hartman

Ogden

Hazen

2017

IJPDLM

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Purpose Discussion regarding the implications of and antecedents to the decision to outsource manufacturing functions has dominated both the academic literature and popular press for over 30 years. However, economic and competitive landscapes across the globe have changed such that the tenability of outsourcing is being re-evaluated by many organizations. Using the rich body of literature regarding the decision to outsource as a starting point, the purpose of this paper is to investigate the reasons why firms insource and the associated implications thereof. Design/methodology/approach This case study research captures data from 12 firms in the manufacturing industry that have insourced a previously outsourced function. Data were collected via interviews with executives, researcher observations, and archival records over a nine-month period. Findings The findings suggest that the primary drivers for insourcing were predominantly the same as those cited for outsourcing. However, insourcing decisions are often made in response to a specific, external trigger event and not necessarily in concert with long-term, strategic goals. This is in contrast to firms’ desires to make more strategic location decisions. The findings also show that insourcing/outsourcing location decisions require continuous evaluation in order to optimize competitiveness and align with long-term firm goals. Research limitations/implications This research contributes by not only assimilating and gaining an understanding of key factors affecting insourcing decisions, but also by establishing a baseline for future investigation into this burgeoning area via the presentation of testable propositions. Practical implications This paper provides insights for supply chain, logistics, and operations management professionals who seek to better understand the critical factors that should be considered when deciding whether or not to insource. Originality/value The benefits of insourcing are being considered to a greater extent across industry, yet there is a dearth of academic or practitioner literature that business leaders and academicians can use as the basis for examining this decision. This research provides both the basis and motivation for developing knowledge in this area of increasing importance.

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Section: Discussionmentioning

confidence: 81%

Bring it back? An examination of the insourcing decision

Hartman

Ogden

Hazen

2017

IJPDLM

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“…The IT department is responsible for operating and supporting all necessary IT services for a SOE. Compared to other departments of SOEs, IT departments more likely face organizational transformations caused by increasing initiatives of public private partnerships in the IT sector (Sharma 2012;Da Cruz and Marques 2012), realization of IT outsourcing activities (Joha and Janssen 2010;Cordella and Willcocks 2012) or the upcoming trend of IT insourcing (Damanpour et al 2013;Warner and Hefetz 2012). With these issues in mind, our work addresses the following research question (RQ): new enterprise resource planning (ERP) systems and apply this framework in a case study with a German airport.…”

Section: Introductionmentioning

confidence: 99%

How to Overcome Transformation Barriers in IT Departments of State-Owned Enterprises

Ertl¹,

Herzfeldt²,

Krcmar³

2018

JPAG

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This paper develops a framework for analyzing organizational change in information technology (IT) departments of state-owned enterprises (SOEs) and applies that framework to a case study of a German airport that is majority-owned by the German federal government. Specifically, we derive a framework from literature to systematically identify transformation barriers for introducing new enterprise resource planning (ERP) systems and business processes in IT departments of SOEs. This framework is based on the punctuated equilibrium model and considers dynamic process incorporation, explicit stakeholder integration, a detailed representation of the change process, and characteristics of public employees as main factors. We then apply the framework in a case study research approach and show how the ISSN 2161-7104 2018 http://jpag.macrothink.org 87 framework allows identification of transformation barriers hidden to management but involved in the organizational change process (e.g., required change of organizational structures, required change of service-level-agreements). The framework can be a valuable tool for both researchers and practitioners to actively shape the effects of organizational transformation in SOEs and to identify factors that influence the change process. Journal of Public Administration and Governance

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Ensuring the Success of Management Accounting Change in IT Departments of Public Organizations

Ertl

Herzfeldt

Floerecke

et al. 2020

International Journal of Service Science, Management, Engineering, and Technology

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Organizational changes in information technology (IT) departments of public organizations are a frequent phenomenon. In contrast to private companies or public administrations, public organizations have some unique characteristics. There is, however, only little research available on how these characteristics need to be considered when analyzing organizational changes. Based on four organizational attributes affecting IT accounting change, this contribution applies a new, holistic framework to a case study. This framework allows in-depth insights into IT management accounting departments to systematically reveal the effects that contribute to a successful organizational transformation. Future research in the field of change in IT management accounting of public organizations will have benefits from applying this new framework to analyze practical examples and, from this, to develop valuable recommendations both for researchers and practitioners.

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Outsourcing and Insourcing Organizational Services: Operational Capabilities & Strategy Recurrence

Cited by 3 publications

References 0 publications

Bring it back? An examination of the insourcing decision

Bring it back? An examination of the insourcing decision

How to Overcome Transformation Barriers in IT Departments of State-Owned Enterprises

Ensuring the Success of Management Accounting Change in IT Departments of Public Organizations

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