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Configurations of Business Process Outsourcing Firms and Organizational Performance

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  • Sharda, Kirti
  • Chatterjee Leena

Abstract

There is an increasing recognition of outsourcing firms as new organizational forms with unique systems and practices. This paper uses a configurational approach to integrate learnings from outsourcing literature, organization and management theory, strategic management and strategic human resource management in order to understand similarities and differences between outsourcing firms and their performance. It formulates a conceptual framework that proposes that certain combinations of work designs, strategic orientations, client relationships and contexts could lead to better organizational performance within a sample of outsourcing firms. The paper uses principal components factor analysis, Ward.s minimum variance method, K-means cluster analysis, and chi-square to analyze data collected from 60 outsourcing firms across India. Five dominant configurations of outsourcing firms emerge, namely, clear-eyed strategists, adapting professionals, focalizing artisans, conservative controllers and overambitious associates. Further examination with Kruskal Wallis One-Way ANOVA and Tamhane.s T2 test indicates that specific configurations of outsourcing firms are indeed associated with better performance across a variety of organizational performance parameters.

Suggested Citation

  • 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.
    • Handle: RePEc:iim:iimawp:9022
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    References listed on IDEAS

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    1. Kingshuk K. Sinha & Andrew H. Van de Ven, 2005. "Designing Work Within and Between Organizations," Organization Science, INFORMS, vol. 16(4), pages 389-408, August.
    2. 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.
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