IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v103y2019icp460-471.html
   My bibliography  Save this article

Exploring the transition phase in offshore outsourcing: Decision making amidst knowledge at risk

Author

Listed:
  • Williams, Christopher
  • Durst, Susanne

Abstract

We explore the transition phase in information system (IS) offshore outsourcing, focusing on ongoing decisions made in a client-vendor arrangement and the implications these decisions have for knowledge at risk. Drawing on time-compression and knowledge at risk literatures we argue that firms will need to make ongoing transitional decisions over time as knowledge intensive work is increasingly handed over from client to vendor. We conduct a longitudinal exploratory case study of a strategic development project transitioned from a European client to a company in India over a 4-year period. Analysis indicates: (1) four distinct phases of the transition: penetration, embedment, ramp-up and stabilization; (2) how transitional decisions and knowledge at risk vary across these phases. Results from the longitudinal approach have implications not only for understanding the ‘what’ and ‘how’ in IS offshore outsourcing but also for a deeper insight into the ‘when’ question.

Suggested Citation

  • Williams, Christopher & Durst, Susanne, 2019. "Exploring the transition phase in offshore outsourcing: Decision making amidst knowledge at risk," Journal of Business Research, Elsevier, vol. 103(C), pages 460-471.
  • Handle: RePEc:eee:jbrese:v:103:y:2019:i:c:p:460-471
    DOI: 10.1016/j.jbusres.2018.01.013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296318300134
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2018.01.013?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. Andrea Martinez-Noya & Esteban Garcia-Canal & Mauro F. Guillen, 2013. "R & D Outsourcing and the Effectiveness of Intangible Investments: Is Proprietary Core Knowledge Walking out of the Door?," Journal of Management Studies, Wiley Blackwell, vol. 50(1), pages 67-91, January.
    2. Currie, Wendy L. & Michell, Vaughan & Abanishe, Oluwakemi, 2008. "Knowledge process outsourcing in financial services:: The vendor perspective," European Management Journal, Elsevier, vol. 26(2), pages 94-104, April.
    3. Osei-Bryson, Kweku-Muata & Ngwenyama, Ojelanki K., 2006. "Managing risks in information systems outsourcing: An approach to analyzing outsourcing risks and structuring incentive contracts," European Journal of Operational Research, Elsevier, vol. 174(1), pages 245-264, October.
    4. Beulen, Erik & Fenema, Paul Van & Currie, Wendy, 2005. "From Application Outsourcing to Infrastructure Management:: Extending the Offshore Outsourcing Service Portfolio," European Management Journal, Elsevier, vol. 23(2), pages 133-144, April.
    5. Mary C. Lacity & Leslie P. Willcocks, 2009. "Information Systems and Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59483-8, September.
    6. Bernard L. Simonin, 1999. "Ambiguity and the process of knowledge transfer in strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 20(7), pages 595-623, July.
    7. Leslie P. Willcocks & Mary C. Lacity, 2009. "The Practice of Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-24084-1, September.
    8. Argote, Linda & Ingram, Paul, 2000. "Knowledge Transfer: A Basis for Competitive Advantage in Firms," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 150-169, May.
    9. Kedia, Ben L. & Lahiri, Somnath, 2007. "International outsourcing of services: A partnership model," Journal of International Management, Elsevier, vol. 13(1), pages 22-37, March.
    10. Peter Maskell & Torben Pedersen & Bent Petersen & Jens Dick-Nielsen, 2007. "Learning Paths to Offshore Outsourcing: From Cost Reduction to Knowledge Seeking," Industry and Innovation, Taylor & Francis Journals, vol. 14(3), pages 239-257.
    11. Linda Argote & Bill McEvily & Ray Reagans, 2003. "Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes," Management Science, INFORMS, vol. 49(4), pages 571-582, April.
    12. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    13. I. Beeson & S. Green & J. Sa & A. Sully, 2002. "Linking Business Processes and Information Systems Provision in a Dynamic Environment," Information Systems Frontiers, Springer, vol. 4(3), pages 317-329, September.
    14. Chua, Ai Ling & Pan, Shan L., 2008. "Knowledge transfer and organizational learning in IS offshore sourcing," Omega, Elsevier, vol. 36(2), pages 267-281, April.
    15. John Henley, 2006. "Outsourcing the Provision of Software and IT-Enabled Services to India: Emerging Strategies," International Studies of Management & Organization, Taylor & Francis Journals, vol. 36(4), pages 111-131, January.
    16. Mariagiovanna Baccara, 2007. "Outsourcing, information leakage, and consulting firms," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 269-289, March.
    17. Quélin, Bertrand & Duhamel, François, 2003. "Bringing Together Strategic Outsourcing and Corporate Strategy:: Outsourcing Motives and Risks," European Management Journal, Elsevier, vol. 21(5), pages 647-661, October.
    18. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    19. Raiborn, Cecily A. & Butler, Janet B. & Massoud, Marc F., 2009. "Outsourcing support functions: Identifying and managing the good, the bad, and the ugly," Business Horizons, Elsevier, vol. 52(4), pages 347-356, July.
    20. Bahli, Bouchaib & Rivard, Suzanne, 2005. "Validating measures of information technology outsourcing risk factors," Omega, Elsevier, vol. 33(2), pages 175-187, April.
    21. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    22. Mariagiovanna Baccara, 2007. "Outsourcing, information leakage, and consulting firms," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 260-289, March.
    Full references (including those not matched with items on IDEAS)

    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. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    2. David Dreyfus & Anand Nair & Srinivas Talluri, 2020. "The Impact of Chain Organization Size on Efficiency and Quality of Affiliated Facilities—Implications for Multi‐Unit Organizational Forms," Production and Operations Management, Production and Operations Management Society, vol. 29(7), pages 1605-1623, July.
    3. Jensen, Peter D. Ørberg, 2012. "A passage to India: A dual case study of activities, processes and resources in offshore outsourcing of advanced services," Journal of World Business, Elsevier, vol. 47(2), pages 311-326.
    4. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    5. Aurora I. Maynez Guaderrama & Judith Cavazos Arroyo & Santiago Ibarreche Suarez & Jose Pablo Nuno de la Parra, 2012. "Identification Of Common Factors In Tacit Knowledge Transference Within Organizations, Identificacion De Factores Comunes Estudiados, Relacionados Con La Transferencia De Conocimiento Tacito Dentro De," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 5(1), pages 103-117.
    6. Gerhard Speckbacher & Kerstin Neumann & Werner H. Hoffmann, 2015. "Resource relatedness and the mode of entry into new businesses: Internal resource accumulation vs. access by collaborative arrangement," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1675-1687, November.
    7. Tjader, Youxu & May, Jerrold H. & Shang, Jennifer & Vargas, Luis G. & Gao, Ning, 2014. "Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 614-623.
    8. T. Ravichandran & Simona Ileana Giura, 2019. "Knowledge Transfers in Alliances: Exploring the Facilitating Role of Information Technology," Information Systems Research, INFORMS, vol. 30(3), pages 726-744, September.
    9. Xin Liu & Lin Zhang & Abhinav Gupta & Xiaoming Zheng & Changqi Wu, 2022. "Upper echelons and intra‐organizational learning: How executive narcissism affects knowledge transfer among business units," Strategic Management Journal, Wiley Blackwell, vol. 43(11), pages 2351-2381, November.
    10. Yulin Fang & Guo‐Liang Frank Jiang & Shige Makino & Paul W. Beamish, 2010. "Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance," Journal of Management Studies, Wiley Blackwell, vol. 47(1), pages 27-54, January.
    11. Nigel Driffield & Yong Yang, 2021. "Leveraging the benefits of location decisions into performance:A global view from matched MNEs," Working Papers 011, The Productivity Institute.
    12. Lee, Ho & Kim, Moon Sun & Kim, Kyung Kyu, 2014. "Interorganizational information systems visibility and supply chain performance," International Journal of Information Management, Elsevier, vol. 34(2), pages 285-295.
    13. Der-Fang Hung, 2015. "Sustained Competitive Advantage and Organizational Inertia: The Cost Perspective of Knowledge Management," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 769-789, December.
    14. Valle, Sandra & García, Francisco & Avella, Lucía, 2015. "Offshoring Intermediate Manufacturing: Boost or Hindrance to Firm Innovation?," Journal of International Management, Elsevier, vol. 21(2), pages 117-134.
    15. Yang, Yong & Driffield, Nigel, 2022. "Leveraging the benefits of location decisions into performance: A global view from matched MNEs," Journal of Business Research, Elsevier, vol. 139(C), pages 468-483.
    16. Kiessling, Timothy S. & Richey, R. Glenn & Meng, Juan & Dabic, Marina, 2009. "Exploring knowledge management to organizational performance outcomes in a transitional economy," Journal of World Business, Elsevier, vol. 44(4), pages 421-433, October.
    17. Kyle J. Mayer & Deepak Somaya & Ian O. Williamson, 2012. "Firm-Specific, Industry-Specific, and Occupational Human Capital and the Sourcing of Knowledge Work," Organization Science, INFORMS, vol. 23(5), pages 1311-1329, October.
    18. Magnani, Giovanna & Zucchella, Antonella & Strange, Roger, 2019. "The dynamics of outsourcing relationships in global value chains: Perspectives from MNEs and their suppliers," Journal of Business Research, Elsevier, vol. 103(C), pages 581-595.
    19. Hätönen, Jussi, 2009. "Making the locational choice: A case approach to the development of a theory of offshore outsourcing and internationalization," Journal of International Management, Elsevier, vol. 15(1), pages 61-76, March.
    20. J. Nils Foege & Erk P. Piening & Torsten-Oliver Salge, 2017. "Don’T Get Caught On The Wrong Foot: A Resource-Based Perspective On Imitation Threats In Innovation Partnerships," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-42, April.

    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:eee:jbrese:v:103:y:2019:i:c:p:460-471. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    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.