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Task attributes and process integration in business process offshoring: A perspective of service providers from India and China

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  • Yadong Luo

    (1] Department of Management, School of Business Administration, University of Miami, Coral Gables, Florida, USA[2] Sun Yat-Sen Business School, Sun-Yat-Sen University, Guangzhou, China)

  • Stephanie Lu Wang

    (Department of Management, School of Business Administration, University of Miami, Coral Gables, Florida, USA)

  • Qinqin Zheng

    (Department of Management, School of Management, Fudan University, Shanghai, China)

  • Vaidyanathan Jayaraman

    (Department of Management, School of Business Administration, University of Miami, Coral Gables, Florida, USA)

Abstract

This study addresses an important issue in designing and managing business process offshoring (BPO): process integration between an offshore service provider and its global BPO client. We applied the information-processing lens in global BPO and developed the logic that internationally disaggregated process integration requires a fit between process integration and BPO's task characteristics (i.e., task complexity and security) and task interdependence (task connectivity, stickiness, and dependency). This alignment is further moderated by the task context, such as the geographic dispersion of the global client's end-customers and the type of offshore provider (independent vendor vs captive and joint venture). Finally, we suggest that process integration has a positive but curvilinear relationship with the economic returns achieved by offshore providers. Our analysis of 308 BPO companies in India and China supports our propositions. We conclude that international managers monitoring and integrating globally disaggregated activities in BPO should establish a proper alignment with the BPO project's task traits and task interdependence, and look closely at the conditioning effect of external complexity. By redressing the paucity of research on governing global BPO, this study offers some insights into the integration–externalization dynamics for growing business/knowledge process offshoring.

Suggested Citation

  • Yadong Luo & Stephanie Lu Wang & Qinqin Zheng & Vaidyanathan Jayaraman, 2012. "Task attributes and process integration in business process offshoring: A perspective of service providers from India and China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(5), pages 498-524, June.
  • Handle: RePEc:pal:jintbs:v:43:y:2012:i:5:p:498-524
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    Cited by:

    1. Mukherjee, Debmalya & Gaur, Ajai S. & Datta, Avimanyu, 2013. "Creating value through offshore outsourcing: An integrative framework," Journal of International Management, Elsevier, vol. 19(4), pages 377-389.
    2. Niccolò Pisani & Joan Enric Ricart, 2016. "Offshoring of Services: A Review of the Literature and Organizing Framework," Management International Review, Springer, vol. 56(3), pages 385-424, June.
    3. Luo, Yadong & Wang, Stephanie Lu & Jayaraman, Vaidyanathan & Zheng, Qinqin, 2013. "Governing business process offshoring: Properties, processes, and preferred modes," Journal of World Business, Elsevier, vol. 48(3), pages 407-419.
    4. Zimmermann, Angelika & Ravishankar, M.N., 2016. "A systems perspective on offshoring strategy and motivational drivers amongst onshore and offshore employees," Journal of World Business, Elsevier, vol. 51(4), pages 548-567.
    5. repec:eee:proeco:v:193:y:2017:i:c:p:281-293 is not listed on IDEAS
    6. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, vol. 19(4), pages 390-406.

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