IDEAS home Printed from https://ideas.repec.org/a/spr/infosf/v10y2008i2d10.1007_s10796-008-9063-x.html
   My bibliography  Save this article

The impact of process standardization on business process outsourcing success

Author

Listed:
  • Kim Wüllenweber

    (Johann Wolfgang Goethe University)

  • Daniel Beimborn

    (University of Bamberg)

  • Tim Weitzel

    (University of Bamberg)

  • Wolfgang König

    (Johann Wolfgang Goethe University)

Abstract

What is the impact of business process standardization on business process outsourcing (BPO) success? This paper argues that there is a direct impact of process standardization on BPO success, due to production cost economies, and also an indirect effect via improved contractual and relational governance resulting from better monitoring opportunities and facilitated communication and coordination. This threefold impact of standardization on BPO success is empirically confirmed using data from 335 BPO ventures in 215 German banks.

Suggested Citation

  • Kim Wüllenweber & Daniel Beimborn & Tim Weitzel & Wolfgang König, 2008. "The impact of process standardization on business process outsourcing success," Information Systems Frontiers, Springer, vol. 10(2), pages 211-224, April.
    • Handle: RePEc:spr:infosf:v:10:y:2008:i:2:d:10.1007_s10796-008-9063-x
    DOI: 10.1007/s10796-008-9063-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10796-008-9063-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10796-008-9063-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-1158, December.
    2. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    3. Laurie J. Kirsch, 1996. "The Management of Complex Tasks in Organizations: Controlling the Systems Development Process," Organization Science, INFORMS, vol. 7(1), pages 1-21, February.
    4. Narus, James A. & Anderson, James C., 1987. "Distributor contributions to partnerships with manufacturers," Business Horizons, Elsevier, vol. 30(5), pages 34-42.
    5. Morten T. Hansen, 2002. "Knowledge Networks: Explaining Effective Knowledge Sharing in Multiunit Companies," Organization Science, INFORMS, vol. 13(3), pages 232-248, June.
    6. William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
    7. Murray, John D & White, Robert W, 1983. "Economies of Scale and Economies of Scope in Multiproduct Financial Institutions: A Study of British Columbia Credit Unions," Journal of Finance, American Finance Association, vol. 38(3), pages 887-902, June.
    8. Benoit Aubert & Michel Patry & Suzanne Rivard, 1998. "Assessing the Risk of IT Outsourcing," CIRANO Working Papers 98s-16, CIRANO.
    9. Gérard P. Cachon & Patrick T. Harker, 2002. "Competition and Outsourcing with Scale Economies," Management Science, INFORMS, vol. 48(10), pages 1314-1333, October.
    10. Jae-Nam Lee & Shaila M. Miranda & Yong-Mi Kim, 2004. "IT Outsourcing Strategies: Universalistic, Contingency, and Configurational Explanations of Success," Information Systems Research, INFORMS, vol. 15(2), pages 110-131, June.
    11. Jakki Mohr & Robert Spekman, 1994. "Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 135-152, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Beomjin Choi & T. S. Raghu & Ajay Vinzé & Kevin J. Dooley, 2019. "Effectiveness of standards consortia: Social network perspectives," Information Systems Frontiers, Springer, vol. 21(2), pages 405-416, April.
    2. Patrick Afflerbach & Manuel Bolsinger & Maximilian Röglinger, 2016. "An economic decision model for determining the appropriate level of business process standardization," Business Research, Springer;German Academic Association for Business Research, vol. 9(2), pages 335-375, August.
    3. Wafa Bouaynaya, 2020. "Characterization of Cloud Computing Reversibility as Explored by the DELPHI Method," Information Systems Frontiers, Springer, vol. 22(6), pages 1505-1518, December.
    4. Yigitbasioglu, Ogan M., 2015. "External auditors' perceptions of cloud computing adoption in Australia," International Journal of Accounting Information Systems, Elsevier, vol. 18(C), pages 46-62.
    5. Caniato, Federico & Elia, Stefano & Luzzini, Davide & Piscitello, Lucia & Ronchi, Stefano, 2015. "Location drivers, governance model and performance in service offshoring," International Journal of Production Economics, Elsevier, vol. 163(C), pages 189-199.
    6. Lahiri, Somnath & Kedia, Ben L., 2009. "The effects of internal resources and partnership quality on firm performance: An examination of Indian BPO providers," Journal of International Management, Elsevier, vol. 15(2), pages 209-224, June.
    7. Thomas Gackstatter & Benedikt Müller-Stewens & Klaus Möller, 2019. "Effective accounting processes: the role of formal and informal controls," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(2), pages 131-152, July.
    8. Lacity, Mary & Willcocks, Leslie P., 2017. "Conflict resolution in business services outsourcing relationships," LSE Research Online Documents on Economics 69810, London School of Economics and Political Science, LSE Library.
    9. Heidi Romero & Remco Dijkman & Paul Grefen & Arjan Weele, 2015. "Factors that Determine the Extent of Business Process Standardization and the Subsequent Effect on Business Performance," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(4), pages 261-270, August.
    10. Jun Tian & Kanliang Wang & Yan Chen & Björn Johansson, 2010. "From IT deployment capabilities to competitive advantage: An exploratory study in China," Information Systems Frontiers, Springer, vol. 12(3), pages 239-255, July.
    11. Frederik Ahlemann & Sven Dittes & Tim Fillbrunn & Kevin Rehring & Stefan Reining & Nils Urbach, 2023. "Managing In-Company IT Standardization: A Design Theory," Information Systems Frontiers, Springer, vol. 25(3), pages 1161-1178, June.
    12. Trkman, Peter, 2010. "The critical success factors of business process management," International Journal of Information Management, Elsevier, vol. 30(2), pages 125-134.
    13. Markus Schäfermeyer & Christoph Rosenkranz & Roland Holten, 2012. "The Impact of Business Process Complexity on Business Process Standardization," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(5), pages 261-270, October.
    14. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.
    15. Kanika Goel & Wasana Bandara & Guy Gable, 2023. "Conceptualizing Business Process Standardization: A Review and Synthesis," Schmalenbach Journal of Business Research, Springer, vol. 75(2), pages 195-237, June.
    16. Christian P Theurer & Andranik Tumasjan & Isabell M Welpe, 2018. "Contextual work design and employee innovative work behavior: When does autonomy matter?," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-35, October.
    17. Sukruth Suresh & T. Ravichandran, 2022. "Value Gains in Business Process Outsourcing: The Vendor Perspective," Information Systems Frontiers, Springer, vol. 24(2), pages 677-690, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jahyun Goo, 2010. "Structure of service level agreements (SLA) in IT outsourcing: The construct and its measurement," Information Systems Frontiers, Springer, vol. 12(2), pages 185-205, April.
    2. Bart A. De Jong & Katinka M. Bijlsma-Frankema & Laura B. Cardinal, 2014. "Stronger Than the Sum of Its Parts? The Performance Implications of Peer Control Combinations in Teams," Organization Science, INFORMS, vol. 25(6), pages 1703-1721, December.
    3. Sandeep Rustagi & William R. King & Laurie J. Kirsch, 2008. "Predictors of Formal Control Usage in IT Outsourcing Partnerships," Information Systems Research, INFORMS, vol. 19(2), pages 126-143, June.
    4. Christian Jung-Gehling & Erik Strauss, 2018. "A Contemporary Concept of Organizational Control: Its Dependence on Shared Values and Impact on Motivation," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(4), pages 341-374, November.
    5. Rob Gleasure & Kieran Conboy & Lorraine Morgan, 2019. "Talking Up a Storm: How Backers Use Public Discourse to Exert Control in Crowdfunded Systems Development Projects," Information Systems Research, INFORMS, vol. 30(2), pages 447-465, June.
    6. Johnson, William H.A., 2011. "Managing university technology development using organizational control theory," Research Policy, Elsevier, vol. 40(6), pages 842-852, July.
    7. Sebastian Goebel & Barbara E. Weißenberger, 2017. "The Relationship Between Informal Controls, Ethical Work Climates, and Organizational Performance," Journal of Business Ethics, Springer, vol. 141(3), pages 505-528, March.
    8. Rachel Levy & Damien Talbot, 2015. "Control by proximity: Evidence from the 'Aerospace Valley' Competitiveness Cluster," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 955-972, June.
    9. Christos Pitelis, 2013. "Towards a More ‘Ethically Correct’ Governance for Economic Sustainability," Journal of Business Ethics, Springer, vol. 118(3), pages 655-665, December.
    10. Downes, Rebecca & Daellenbach, Urs & Donnelly, Noelle, 2023. "Remote control: Attitude monitoring and informal control in distributed teams," Journal of Business Research, Elsevier, vol. 154(C).
    11. Nullmeier, Fabian & Wynstra, Finn & van der Valk, Wendy, 2019. "Mitigating shirking: Contracting performance in buyer-initiated service triads," Other publications TiSEM cebcb590-5a85-4906-b8ec-1, Tilburg University, School of Economics and Management.
    12. Atkins, Derek & Liang, Liping, 2010. "A note on competitive supply chains with generalised supply costs," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1316-1320, December.
    13. Jain, Amit, 2011. "Connaissance, ressources, concurrence et les frontières de l'entreprise," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/6403 edited by Thiétart, Raymond-Alain.
    14. Lumineau, Fabrice & Henderson, James, 2012. "The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes," MPRA Paper 38510, University Library of Munich, Germany.
    15. Jetta Frost & Rick Vogel & Khaled Bagban, 2016. "Managing Interdependence in Multi-business Organizations," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 17(2), pages 225-260, August.
    16. Donghwan Cho, 2019. "Exploring the Ambivalent Effects of Control Modes on Project Performance Dimensions in Software Development Outsourcing," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 9(1), pages 1-7, January.
    17. Nils Urbach & Tobias Würz, 2012. "How to Steer the IT Outsourcing Provider," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(5), pages 247-259, October.
    18. Anjana Susarla & Ramanath Subramanyam & Prasanna Karhade, 2010. "Contractual Provisions to Mitigate Holdup: Evidence from Information Technology Outsourcing," Information Systems Research, INFORMS, vol. 21(1), pages 37-55, March.
    19. Francesco Giacobbe & Zoltan Matolcsy & James Wakefield & Tom Smith, 2016. "An investigation of wholly-owned foreign subsidiary control through transaction cost economics theory," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 56(4), pages 1041-1070, December.
    20. Yan, Aimin & Gray, Barbara, 2001. "Negotiating control and achieving performance in international joint ventures: A conceptual model," Journal of International Management, Elsevier, vol. 7(4), pages 295-315.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:infosf:v:10:y:2008:i:2:d:10.1007_s10796-008-9063-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.