The Clash of Cultures in Information Technology Outsourcing Relationships: An Institutional Logics Perspective

Schmidt, Nikolaus; Zöller, Bastian; Rosenkranz, Christoph

doi:10.1007/978-3-319-47009-2_6

Cited by 9 publications

(5 citation statements)

References 44 publications

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“…This paper makes two major contributions to the academic literature: First, it is the first to combine extant research on culture (Hofstede et al , 2010), antecedents of ITO success (Grover et al , 1996; Lee and Kim, 1999; Kern, 1997; Kishore et al , 2003; Lacity et al , 2016), and the effect of culture on relationship quality and ITO success (Leidner and Kayworth, 2006; Schmidt et al , 2016; Winkler et al , 2008) to conceptualize the effect of cultural distance on ITO success in three layers (national, organizational, team-level culture). The outcome is a tentative theoretical model (depicted in Figure 1), which guided our empirical investigation in the form of an in-depth single case study.…”

Section: Discussionmentioning

confidence: 99%

“…The outcome is a tentative theoretical model (depicted in Figure 1), which guided our empirical investigation in the form of an in-depth single case study. Unlike previous studies that evaluated culture in the context of ITO on one or two particular levels (Schmidt et al , 2016), our research is not limited to national, organizational, or team-level culture. Instead, it uses the idiosyncrasy of our case study to offer an integrated view on culture-induced effects on all three levels.…”

Section: Discussionmentioning

confidence: 99%

“…There is a need for further exploration and explication of the roots of these cultural problems, how they influence the day-to-day collaboration, and how their effects can be mitigated. Existing case studies on the effect of culture on ITO investigate only the effects of either national- or organizational-level cultural differences on ITO success (Dibbern et al , 2012; Jain et al , 2011; Winkler et al , 2008) or lack an in-depth analysis of the overall influence of culture and its moderators (Schmidt et al , 2016). By focusing on one or two levels or by disregarding moderating effects, these studies paint an incomplete picture and call for further research (Schmidt et al , 2016).…”

Section: Introductionmentioning

confidence: 99%

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Unraveling the impact of cultural distance on IT outsourcing success – insights from three major sourcing reconfigurations

Könning

Strahringer

Westner

2020

JEIM

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PurposeIT outsourcing (ITO) has developed into an established practice for organizations but the interorganizational and oftentimes international collaboration it involves comes at a price: Reports from academia and practice suggest that more than 25% of all ITO projects fail, many because of cultural differences between client and provider organizations. Against this background, this paper analyzes the complex nature of cultural distance and its multi-faceted effect on ITO success.Design/methodology/approachThis paper builds upon extant literature on culture on the national, organizational and team level, conceptualizes its effect on relationship quality and ITO success, and hypothesizes a model on potential moderators and management techniques to offset culture-induced challenges. It then evaluates and refines the model by means of an interpretive qualitative research design for an in-depth single-case study of ProSiebenSat.1 Media SE (P7S1), a leading European media company that reconfigured its IT sourcing model three times in 10 years.FindingsThe results from interviews with top managers from client and provider organizations represent one of the first integrated views on the critical importance of cultural compatibility on multiple levels, provide manifold examples for its complex effect on ITO success, as well as moderators and potential management techniques to promote ITO success.Research limitations/implicationsThis paper contributes relevant empirical insights to the growing body of literature on culture and its underestimated role in ITO success. It builds on tentative theory that is confirmed and refined.Practical implicationsThe paper helps in substantiating the complex and intangible nature of culture and demonstrates means for its effective management.Originality/valueThe results from interviews with top managers from client and provider organizations represent one of the first integrated views on the critical importance of cultural compatibility on multiple levels, provide manifold examples for its complex effect on ITO success, as well as moderators and potential management techniques to promote ITO success.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Unraveling the impact of cultural distance on IT outsourcing success – insights from three major sourcing reconfigurations

Könning

Strahringer

Westner

2020

JEIM

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“…Communication includes understanding, sharing, and meaning (University of Minnesota, 2015). It includes open talks about expectations, future directions, skills, strengths, shortcomings, and daily interchange of project-related information (Schmidt & Menth, 2016;Zhong & Myers, 2016;Hodosi et al, 2020). Communication is an effective way to share information and a key for a healthy partnership.…”

Section: C) Communication (Com)mentioning

confidence: 99%

A Study on Contributing Factors of IT Outsourcing Satisfaction Financial Service Industry in Hong Kong

Mo,

Chiang

2024

EJBMR

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This paper aims to identify the critical success factors in Hong Kong Financial Service Industry IT outsourcing satisfaction and propose possible satisfaction rate boosts. A hybrid methodology (qualitative and quantitative) was adopted to analyze the variables and their relationship thoroughly. The six members focus group was formed to discuss IT outsourcing, and the survey was conducted to collect 447 valid responses for data analysis. The six critical success factors were Perceived Information Security Risk, Quality of Service Provider, Contract Management, Internal Contract Experience, Communication and Regulatory Policy, identified to support satisfaction of Hong Kong FSI IT outsourcing after conducting the analysis. Three recommendations are proposed to improve IT outsourcing satisfaction based on the findings of critical success factors: (1) A Build-up of Vendor Evaluation Framework, (2) Enhancement for Knowledge Management, and (3) Enhance Performance Monitoring. The snowball sampling method might have introduced biased information. In future research, a more extensive research scale would be required to understand the whole population, which would be more appropriate for the industry to understand the need and construct any policy. This paper is a holistic approach to identifying factors that affect Hong Kong FSI IT outsourcing satisfaction. In addition, practical recommendations were proposed to improve those factors, thereby increasing the satisfaction rate of IT outsourcing.

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“…Despite the widespread use and extensive expertise of Chief Information Officers in IS/IT project outsourcing, the failure of such projects is a prevalent occurrence. The literature suggests that at least one in three projects were considered a failure and that, in addition to this, many projects were delayed, ran over budget, and were not able to meet their pre-defined targets (Delens, Peters, Verhoef, & Van Vlijmen, 2016;Jabangwe, Smite, & Hesbo, 2016;Schmidt, Zoller, & Rosenkranz, 2016;Wojewoda & Hastie, 2015). A pertinent question deals with how IS/IT project outsourcing failure may be addressed.…”

Section: Introductionmentioning

confidence: 99%

The Role of Modular Architecture in The Context of Is/It Project Outsourcing: An Empirical Analysis

Benazeer,

Jan Verelst,

Huysmans

2024

IJBMS

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The outsourcing of information systems and information technology (IS/IT) has become a prevalent practice in both developed and emerging economies, with the aim of achieving economies of scale and competitive advantages. In general, an IS/IT outsourcing deal concerns an agreement or contract (service level agreement or SLA) between parties in which one party (the vendor organization) agrees to deliver certain services to another party (the customer organization). The outsourcing literature is persistently reporting high failure rates in IS/IT project outsourcing and suggests that the IS/IT project outsourcing process is a complex maneuver. However, it is likely that due to inappropriate strategies and short-sightedness, at least a third of IS/IT outsourcing projects fail to deliver intended targets. For decades, in numerous fields, the issue of complexity has been addressed by applying the concept of modularity. Modular architecture is a key aspect of the concept of modularity. An in-house team of skilled individuals possessing expertise in architectural and systems integration knowledge may help to achieve competitive advantage by effectively managing complexity. In addition to achieving economies of scale, the customer organization may also achieve agility and flexibility by combining the advantages of modularity and outsourcing. This study examines the feasibility of applying the concept of modularity in the context of IS/IT project outsourcing with the aim of further expanding its scope. The findings of empirical analyses of four cases suggest that numerous aspects of the concept of modularity are relevant in the context of IS/IT project outsourcing. The ‘modular architecture’ has emerged as one of the most relevant and was identified in three out of the four analyzed cases. It implies that the ‘modular architecture’ aspect ought to receive greater attention when designing or planning a new IS/IT outsourcing project. The authors argue by stating that the present study has provided support for the point of view that engineering concepts such as modularity can be applied with substantial relevance to research domains which are predominantly considered from an IT management-perspective. Perhaps the use of the same concept, i.e., modularity, at both the technical and management level will provide a common vocabulary and may be even more to achieve better alignment between both levels and contribute to realizing more successful IS/IT outsourcing projects in the future. However, at the very least, a common vocabulary should help in collaboration between researchers at both levels to advance the research and practice in IS/IT project outsourcing, to which this is an invitation. It would be a contribution to the new and emerging research area focusing on applying engineering concepts to the design of enterprises, coined Enterprise Engineering. In addition to theoretical contributions, this study has implications at a practical level by providing an alternative lens for the CIO’s to analyze their future IS/IT projects.

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The Clash of Cultures in Information Technology Outsourcing Relationships: An Institutional Logics Perspective

Cited by 9 publications

References 44 publications

Unraveling the impact of cultural distance on IT outsourcing success – insights from three major sourcing reconfigurations

Unraveling the impact of cultural distance on IT outsourcing success – insights from three major sourcing reconfigurations

A Study on Contributing Factors of IT Outsourcing Satisfaction Financial Service Industry in Hong Kong

The Role of Modular Architecture in The Context of Is/It Project Outsourcing: An Empirical Analysis

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