The Influence of Partner Knowledge Complementarities on the Effectiveness of IT Outsourcing

Despite the importance of knowledge complementarities to inter-firm cooperation, few researchers in information systems (IS) have examined, to date, the construct of knowledge complementarities (KC), and none have examined its role in the success of IT outsourcing alliances. In this paper, we distinguish between potential knowledge complementarities (PKC) and synergistic value, which comprise KC. PKC is conceptualized as a multidimensional construct encompassing knowledge types (similar and specialized) and knowledge domains (business and IT). Further, we examine the extent to which PKC between the client and the vendor promotes success in IT outsourcing alliances. This research also includes relative absorptive capacity because it is relevant when complementary knowledge flows between organizations. We used data from a field study of 81 firms in Korea to test the proposed model. Our findings indicate that each dimension of PKC contributes uniquely to knowledge complementarities. The results also show that PKC is significantly associated with IT outsourcing effectiveness. Relative absorptive capacity is found to be a moderator between PKC and IT outsourcing effectiveness. The theoretical and practical implications of these findings are discussed in the paper.     

How to Steer the IT Outsourcing Provider

IT executives entering into information technology (IT) outsourcing arrangements seek various strategic, economic, and technological benefits. However, although several cases of IT outsourcing are considered successful, cases of failure can also be observed. Problems and challenges associated with IT outsourcing often not only relate to the strategic decision whether or not to outsource, but to the operational level as well. Especially organizations with little experience of implementing larger IT outsourcing programs face problems with the steering of external outsourcing providers. In this paper, we propose a reference framework that structures the required processes for an effective steering of IT outsourcing relationships. The research is based on the design science paradigm in information systems research. In a first step, we derive a framework from related literature and knowledge in this particular area. We then undertake extensive fieldwork, including expert interviews and field studies to evaluate our framework and to develop it further. The suggested framework proves to be a viable instrument to support the systematic analysis of current processes and the definition of suitable target processes for the steering of IT outsourcing programs. This paper??s primary contribution therefore lies in providing an applicable instrument for practitioners as well as in extending the existing body of knowledge on IT outsourcing governance.     

Developing Information Systems to Support Flexible Strategy

The literature on strategic applications of information technology(IT) and strategic information systems (SIS) contains a number of "classic" success cases. These systems are successful in terms of one particular strategy framework, but there is evidence that the demands placed upon SIS are changing. Changes in the business environment and in the rate of development of technology have created a requirement for more flexibility in the strategic process. This must be supported by a "new generation" of SIS that integrate with flexible infrastructures to provide long-term effective support for a flexible business strategy. This article looks at the changing nature of the strategic: process and examines a framework that has potential to assist in these aims. A number of techniques are analyzed to assess their capability for identifying strategic applications of IT. Finally, a way of providing a flexible IS/IT infrastructure relevant to the development of a flexible SIS is discussed.     

SME Internet use and strategic flexibility: the moderating effect of IT market orientation

Abstract

One of the most important topics in the marketing literature has been the concept of market orientation. However, questions remain as to the dynamics of how market orientation translates into intermediate capabilities. This study explores relationships among different types of Internet usage, IT market orientation (the extent to which IT is aligned to manage customer and competitor information and internal activities), and strategic flexibility (firm capability to respond to the need for change). Specifically, use of the Internet for communication with relevant stakeholders, owing to its market-sensing potential, should be positively and significantly related to strategic flexibility for SMEs with more IT market-oriented alignment. The market-sensing potential of Internet communication to impact strategic flexibility positively for SMEs is likely to be lost under low IT market-oriented-alignment conditions. In contrast, IT market orientation should not moderate the relationship between Internet use for transactions with relevant stakeholders and strategic flexibility, given that the typical order taking and processing is a static, routine function for SMEs. Results supported hypothesised relationships. By delineating the type of Internet usage and required IT alignment that contribute to leveraging the Internet effectively, findings hold implications for future research by clarifying boundary conditions for Internet effects. Specifying how and when Internet use promotes strategic flexibility, an important enabler of competitive advantage, helps small business owner/managers better utilise their limited resources.     

Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA

A central question for researchers and practitioners is whether and how IT (information technology) can help build a competitive advantage in uncertain environments. To address this question, the present study seeks to empirically explore the relationship between IT-enabled dynamic capabilities and competitive performance. By drawing upon recent thinking in the strategy and IT management literatures, this paper argues that the impact of IT-enabled dynamic capabilities on competitive performance is mediated by organizational agility. Using survey data from 274 international firms and by applying structural equation modelling (SEM), outcomes suggest that IT-enabled dynamic capabilities facilitate two types of agility, market capitalizing and operational adjustment agility, which in sequence enhance competitive performance. The confluence of environmental factors is examined by fuzzy-set qualitative comparative analysis (fsQCA). The results of fsQCA reinforce and refine findings of the PLS analysis concerning the limits and conditions to which IT-enabled dynamic capabilities add value.     

Strategic alliances and competitive edge: insights from Spanish and UK banking histories

This research assesses the success of collaboration agreements through changes in competitive strength rather than the longevity of the transactions or the formality and visible structure of the agreements. To establish competitive strength, as development and renewal of capabilities, the research proceeds through the review of the alliance between the Co-operative Permanent Building Society, the Co-operative Wholesaling Society, Scottish Co-operative Wholesaling Society and Co-operative Insurance Society (1943–65). This cooperative agreement allows insights into the strategy of non-banks and nonfinance participants aiming to enter British bank markets. The research also considers the rather different process at Spanish savings banks, with a particular focus on IT outsourcing (1977–95). Cases in the UK and Spain form an historical argument and are used to demonstrate how the implementation of strategy is as important as strategic visioning to achieve competitive advantage in bank markets.     

A curriculum model for IT infrastructure management in undergraduate business schools

As information technology infrastructure becomes strategic to organizations, the author examines business-school programs that educate future infrastructure analysts. Information systems (IS) 2010 and information technology (IT) 2008 curriculum models are used to survey courses required by telecommunications and IT infrastructure programs in business schools. Of 525 Association to Advance Collegiate Schools of Business–accredited schools, 259 have IS/IT programs and 18 have telecommunications and infrastructure-related programs. IT Infrastructure, Networking-Advanced, and IT Security are the top three infrastructure-related courses. Programs also require courses including IS Project Management; Social and Professional Issues; and IS Strategy, Management and Acquisition. Data collected are used to develop a new curriculum model of IT infrastructure management program that can be offered by business schools.     

The management perception of the strategic outsourcing of services: An empirical examination in the hotel sector

This work will analyse the strategy of outsourcing, or the predisposition on the part of a firm to entrust some of its services to a third party. The research will focus on discovering empirically the role that this strategy plays in hotels, and in order to do this we will carry out an analysis of hotel managers' perceptions regarding outsourcing based on the main advantages as well as the drawbacks and barriers which using the strategy can involve, with a view to determining which of these are related to a predisposition to outsource. The results of the research suggest that the main reasons which determine outsourcing are of a strategic rather that cost-reducing nature. Despite the fact that although current outsourcing is conditioned by the cost factor alone, any future increase in the use of the strategy will be determined exclusively by factors of a strategic nature. With respect to the disadvantages of outsourcing which tend to limit the use of the strategy, we will see that these are related to loss of control and autonomy together with a distrust of external suppliers. This work will enable us to assess the extent of the existing demand for outsourcing main services as well as those factors which determine and limit the outsourcing strategy and which have prevented a large number of services where outsourcing would be applicable from being outsourced to the present date. Finally we will present our main conclusions and recommendations.     

The ties that bind us: examining relationship marketing orientation and its impact on firm performance in the information systems outsourcing services sector

The objective of this study is to analyze the adoption of a relationship marketing orientation (RMO) by firms in the information systems (IS) outsourcing service sector. The study frames RMO as a hierarchical, reflective construct which models seven dimensions including bonding, communication, empathy, harmonious conflict resolution, shared value, trust, and reciprocity. A sample of 114 senior executives from firms in the IS outsourcing industry in Hong Kong were obtained from a survey. Empirical analysis via structural equation modeling confirms the hierarchical, seven construct reflective structure of the RMO model, and the high levels of a firms’ RMO lead to a direct positive impact on firm performance outcomes. The findings provide valuable managerial insights for measuring and managing an RMO in the IS outsourcing sector, and professional services generally. Both theoretical and practical implications are discussed along with future research directions of the study.     

Big data analytics and firm performance: Effects of dynamic capabilities

Drawing on the resource-based view and the literature on big data analytics (BDA), information system (IS) success and the business value of information technology (IT), this study proposes a big data analytics capability (BDAC) model. The study extends the above research streams by examining the direct effects of BDAC on firm performance (FPER), as well as the mediating effects of process-oriented dynamic capabilities (PODC) on the relationship between BDAC and FPER. To test our proposed research model, we used an online survey to collect data from 297 Chinese IT managers and business analysts with big data and business analytic experience. The findings confirm the value of the entanglement conceptualization of the hierarchical BDAC model, which has both direct and indirect impacts on FPER. The results also confirm the strong mediating role of PODC in improving insights and enhancing FPER. Finally, implications for practice and research are discussed.     

跨国公司外包网络的治理与供应商的升级

本文基于网络治理的分析,研究了跨国公司外包网络中供应商的类型和升级的问题。指出供应商能力、信息(知识)可编码程度是影响外包网络治理的关键因素,从而将供应商划分为附属型、交流型、模块型三类,对三类供应商进行了详尽的分析;进而研究了供应商在跨国公司外包网络中实现动态升级的路径与对策。     

Managing critical success factors for IS implementation: A stakeholder engagement and control perspective

Enterprise information systems (IS) implementation is often part of an organization's strategic IT initiatives and requires a large investment of organizational resources, yet may fail due to inadequate management of critical success factors (CSF). Using a revelatory case study of a multi‐partner COTS implementation process by a large Canadian government organization, this research investigates successful management of CSF through optimal stakeholder engagement and a balancing of control configurations. This research identifies four distinct project orientations related to stakeholder engagements—strategic, responsibility, harmony, and persuasion—that can be of significant value in managing CSF and other challenges during implementation and post‐implementation phases. In addition to the identification of a need for control balancing in a multi‐partner IS implementation, three key drivers responsible for triggering control balancing are identified: (a) shared understanding, (b) negative anticipation, and (c) deviation of expectations. Copyright © 2017 ASAC. Published by John Wiley & Sons, Ltd.     

基于全球价值链整合的中国企业服务外包承接战略

在跨国公司对华业务不断发展的情况下,中国企业应以IT外包为重点,运用全球价值链理论构建中国企业承接服务外包的"三步走"战略框架。中国企业应该首先嵌入跨国公司主导的全球价值链,通过设立技术监听站与介入突破性创新、构建学习联盟与伺机反向并购、扩大企业规模与进行深度专业化等手段有针对性承接生产者驱动的IT外包、采购者驱动的IT外包和业务流程外包,最终掌握核心技术,实现自主创新。     

Technology strategy and performance: a study of information technology service providers from selected Asian countries

The provision of information technology (IT) services to support a wide range of information and communication technology (ICT) products has experienced rapid growth in recent years, particularly in less developed countries in Asia. This paper develops a conceptual model to test the impacts of the technology strategy of IT service providers on two measures of performance based on the experience of a sample of 98 IT firms from Korea, China, Thailand and the Philippines. It is found that technology strategy related to the adoption and diffusion of technology contributes positively to both performance measures. While the technology capabilities of firms, both internal and external, are important for financial performance, internal technological capabilities are more effective for the firm’s response to market changes. The technology competence of employees reflected by their education levels and the availability of in-house training are also found to be crucial for financial performance. The overall results suggest that technology strategy contributes significantly towards the performance of IT service providers but the impacts of different strategies on the financial and strategic performance of firms vary markedly.

Information Technology and Customer Orientation: A Study of Direct,Mediated, and Interactive Linkages

This study investigates whether and how information technology (IT) is linked to a firm's ability to understand and fulfil customer needs, i.e. customer orientation. IT alone or in tandem with other strategic resources may enable businesses to process market intelligence and coordinate organisational responses to meet evolving buyer preferences. Based on a survey of senior marketing managers and PLS path model analyses, we learned that greater IT capabilities are associated with higher customer orientation but in mediated and interactive ways with marketing information quality and organisational trust. These and other findings largely supported the conceptual model. An implication is that while IT capabilities can help firms be more customer-focused, other critical resources must also be present.     

Outsourcing: Current and future trends

Highlighted are two reasons for outsourcing: cost and focus on the core competencies of the enterprise. Surveying U.S., U.K., and Continental Europe companies concerning current and future outsourcing trends positions outsourcing as a prominent strategic lever. Achieving “best‐of‐breed” practice is predicted to occur through new technology. Also, human resources and IT outsourcing will become more prominent. The results strongly indicate that partnership alliances and performance‐driven contracts will become as important as the current preferred, trusted supplier relationship. Keiretsulike, horizontal linkages will be required to realize scale and competency advantages from future outsourcing arrangements. © 2005 Wiley Periodicals, Inc.     

Investigating a neglected part of Schumpeter’s creative army: what drives new-to-the-market innovation in micro-enterprises?

This paper tests a theoretical model to evaluate e-business capability and value in the fast growth small-to-medium enterprise (SME) context. We propose that e-business value depends on how fast growth SMEs deploy IT resources, strategic planning, culture, and business partnerships to develop e-business capability and business process competence which help these companies to achieve outstanding business performance. Structural equation modelling is employed to test our theoretical conceptualization on a cohort of 310 Australian fast growth SMEs across different industrial sectors. The results show that IT resources, strategic IT alignment, market orientation, and business partnerships do contribute significantly and indirectly to SME performance through the development of e-business capability and business process competence. Our study provides an initial empirical evidence to understand the relationship between IT and entrepreneurial SME performance. These findings have important implications for research and business practices.     

Do Small and Medium‐Sized IT Firms Form Service Partnerships with Nonlocal IT Firms? An Assessment of Facilitators

For small and medium‐sized information technology firms (IT SMEs), the service partnerships formed with other IT firms are strategic instruments to overcome their resource constraints, increase efficiency, and offer complementary services to their customers. Although these firms have a tendency to form local partnerships due to ease of trust building, few of them are engaged in nonlocal partnerships. This research aims to explore the facilitators of this divergent firm behavior. The findings suggest that a firm's alliance capabilities and organizational proximities between distant partners can substitute the lack of geographical proximity and enable IT SMEs' engagement in nonlocal service partnerships. More importantly, the type of IT service rendered through the partnership acts as a moderator and determines the extent of the organizational capabilities and proximities.     

Value-oriented Information Systems Design: The Concept of Potentials Modeling and its Application to Service-oriented Architectures

Companies are increasingly confronted with the question of whether or not the adoption of information technologies (IT) turns out to be a profitable venture. Thus, there is a great need for methods which allow for both the analysis and evaluation of the economic value of IT investments. In this paper we introduce the concept of potentials modeling which integrates a value-oriented perspective into information modeling. More specifically, we set out to explore the economic value of service-oriented architectures (SOA). The practicability of our approach is illustrated on the basis of a simplified application example. It is hoped that this paper will make a contribution to the ongoing discussion of IT value and stimulates further research in the field of value-oriented information systems (IS).     

企业信息化、知识共享与企业绩效

本文通过问卷调查的方式收集企业信息化、知识共享和企业绩效的相关数据,检验了企业信息化对企业绩效的影响以及知识共享在二者关系中的作用。研究表明,企业信息化不仅与企业绩效的提升显著正相关,而且还可通过知识共享的中介作用间接影响企业绩效的提升。本文研究对理解企业信息化建设和应用过程中的知识管理行为提供了一个新的视角。