IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v12y2017i10p43.html
   My bibliography  Save this article

Conceptualizing Relational Resources as Critical Factor for IT Outsourcing Success

Author

Listed:
  • Paolo Popoli

Abstract

The relational resources represent key assets for outsourcing success. Achieving full potential in the development and exploitation of relational resources in outsourcing can be understood as occurring in two closely intertwined phases- i. during the choice of the provider; ii. through the governance of the relation that develops over the execution of the contract. The current paper aims to provide conceptual insights into these two phases, as they apply to the particular area of companies’ IT outsourcing. A first objective is to illustrate the role of relational resources in determining the ultimate degree of success in IT outsourcing and to discuss its potential as an “instrument to address risk”. A second objective is to outline managerial criteria for correct choice of the IT provider and for appropriate direction of client-vendor relations over the course of the resulting contract execution. The main findings of this study show that the paradigmatic shift from a transaction-based outsourcing to a partnership-based outsourcing gives centrality to the contract management and on-going management. On this point, relational resources have become a critical factor for IT outsourcing success, and they have to be considered as a tool to address the risks of IT outsourcing. Concerning the managerial implications the main finding is the need to use the “relational requisites” rather than “subjective requisites” in the evaluation and choice of potential IT provider.

Suggested Citation

  • Paolo Popoli, 2017. "Conceptualizing Relational Resources as Critical Factor for IT Outsourcing Success," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(10), pages 1-43, September.
    • Handle: RePEc:ibn:ijbmjn:v:12:y:2017:i:10:p:43
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/69565/38503
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/69565
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mol, Michael J. & van Tulder, Rob J.M. & Beije, Paul R., 2005. "Antecedents and performance consequences of international outsourcing," International Business Review, Elsevier, vol. 14(5), pages 599-617, October.
    2. Mary C. Lacity & Leslie P. Willcocks, 2014. "Strange Bedfellows No More: Researching Business Process Outsourcing and Dynamic Innovation," Progress in IS, in: Rudy Hirschheim & Armin Heinzl & Jens Dibbern (ed.), Information Systems Outsourcing, edition 4, pages 37-64, Springer.
    3. Beasley, Mark & Bradford, Marianne & Dehning, Bruce, 2009. "The value impact of strategic intent on firms engaged in information systems outsourcing," International Journal of Accounting Information Systems, Elsevier, vol. 10(2), pages 79-96.
    4. 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.
    5. McIvor,Ronan, 2005. "The Outsourcing Process," Cambridge Books, Cambridge University Press, number 9780521844116, October.
    6. William R. King, 2005. "Outsourcing and Offshoring: The New IS Paradigm?," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 8(2), pages 1-4, April.
    7. 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.
    8. Bahli, Bouchaib & Rivard, Suzanne, 2005. "Validating measures of information technology outsourcing risk factors," Omega, Elsevier, vol. 33(2), pages 175-187, April.
    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. McIvor, Ronan & Bals, Lydia, 2021. "A multi-theory framework for understanding the reshoring decision," International Business Review, Elsevier, vol. 30(6).
    3. Vaidyanathan Jayaraman & Zuoming Liu, 2019. "Aligning governance mechanisms with task features to improve service capabilities---an empirical study of professional service outsourcing in India," Operations Management Research, Springer, vol. 12(1), pages 19-39, June.
    4. Nidthida Lin, 2020. "Designing Global Sourcing Strategy for Cost Savings and Innovation: A Configurational Approach," Management International Review, Springer, vol. 60(5), pages 723-753, October.
    5. Lahiri, Somnath & Karna, Amit & Chittaranjan Kalubandi, Sai & Edacherian, Saneesh, 2022. "Performance implications of outsourcing: A meta-analysis," Journal of Business Research, Elsevier, vol. 139(C), pages 1303-1316.
    6. Gerbl, Martina & McIvor, Ronan & Loane, Sharon & Humphreys, Paul, 2015. "A multi-theory approach to understanding the business process outsourcing decision," Journal of World Business, Elsevier, vol. 50(3), pages 505-518.
    7. Kim, Yong Jin & Lee, Jong Man & Koo, Chulmo & Nam, Kichan, 2013. "The role of governance effectiveness in explaining IT outsourcing performance," International Journal of Information Management, Elsevier, vol. 33(5), pages 850-860.
    8. Sharda, Kirti & Chatterjee Leena, 2009. "Configurations of Business Process Outsourcing Firms and Organizational Performance," IIMA Working Papers WP2009-12-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    9. Weng, David H. & Peng, Mike W., 2018. "Home bitter home: How labor protection influences firm offshoring," Journal of World Business, Elsevier, vol. 53(5), pages 632-640.
    10. Lydia Bals & Jon F. Kirchoff & Kai Foerstl, 2016. "Exploring the reshoring and insourcing decision making process: toward an agenda for future research," Operations Management Research, Springer, vol. 9(3), pages 102-116, December.
    11. Guercini, Simone & Milanesi, Matilde, 2020. "Heuristics in international business: A systematic literature review and directions for future research," Journal of International Management, Elsevier, vol. 26(4).
    12. Fouad Amiri & Sietse Overbeek & Gerard Wagenaar & Christoph Johann Stettina, 2021. "Reconciling agile frameworks with IT sourcing through an IT sourcing dimensions map and structured decision-making," Information Systems and e-Business Management, Springer, vol. 19(4), pages 1113-1142, December.
    13. Dahlgrün, Philipp W. & Bausch, Andreas, 2019. "How Opportunistic Culture Affects Financial Performance in Outsourcing Relationships: A Meta-Analysis," Journal of International Management, Elsevier, vol. 25(1), pages 81-100.
    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. Gonzalez, Reyes & Gasco, Jose & Llopis, Juan, 2016. "Information systems contracts and relationships: A Spanish perspective," Journal of Business Research, Elsevier, vol. 69(5), pages 1696-1700.
    16. Mírian Oliveira & Kaytson Hartung & Marcelo Wendling, 2010. "Outsourcing And Offshore: An Analysis Of The Academic Literature," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 215-234.
    17. Gunasekaran, Angappa & Subramanian, Nachiappan & Papadopoulos, Thanos, 2017. "Information technology for competitive advantage within logistics and supply chains: A review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 14-33.
    18. 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.
    19. Anderson, Edward & Coltman, Tim & Devinney, Timothy M. & Keating, Byron W., 2010. "What Drives the Choice of Third Party Logistics Provider?," MPRA Paper 40508, University Library of Munich, Germany.
    20. Soliman, Salma & Papanastassiou, Marina & Saka-Helmhout, Ayse, 2023. "The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration," Journal of International Management, Elsevier, vol. 29(2).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    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:ibn:ijbmjn:v:12:y:2017:i:10:p:43. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.