The impact of offshoring on knowledge‐intensive services: A study of activities in service production processes

2019 ◽  
Vol 9 (3) ◽  
pp. 453-487
Author(s):  
Kristin Brandl
Author(s):  
Kristin Brandl

Purpose Despite increasing interest in offshoring of knowledge-intensive services, it is still undetermined as to whether the sourcing of services truly creates the anticipated value for clients. Moreover, even less is known about whether value is created for service providers in the process beyond the general service trade. This lack of knowledge is due to the challenges of capturing value creation, the unique production process of the services, and the impact of offshoring on both value creation and the production process. The purpose of this paper is to study offshored service production processes of knowledge-intensive services in order to identify direct and indirect value creation for clients as well as service providers in the process. Design/methodology/approach The paper applies a multiple case study method and studies one conglomerate with three offshored service production processes. The chosen method allows for the investigation of the service production process and indirect/direct value creation within the process. Findings The study finds that there is direct value creation for the client and the service provider towards the end of the production processes as expected. However, more importantly, it finds additional indirect value creation in various production stages. The indirect value is reflected in enhanced understanding of problems and own operations for the client and increased knowledge about clients and problem-solving approaches for the service provider. Research limitations/implications This study contributes to offshoring literature by providing a comprehensive understanding of value creation in service offshoring for clients as well as service providers. It also contributes to the service management literature as a study of direct and indirect value creation in services, particularly within the production process of the services. Practical implications The study allows practitioners to gain insights on the value creation logic of offshored services and the value created beyond that logic. More specifically, it allows client firms to gain details of various values and benefits of service offshoring and service provider firms to gain a focused perspective on value creation in their own service production that can lead to competitive advantages. Originality/value The paper is novel and original through its approach to study offshoring from a value creation logic perspective, including not only the client but also the service provider perspective. It also applies a service production process perspective that is novel in offshoring literature.


2019 ◽  
Vol 3 (4) ◽  
pp. 209-222
Author(s):  
Philipp K. Görs ◽  
Henning Hummert ◽  
Anne Traum ◽  
Friedemann W. Nerdinger

Digitalization is a megatrend, but there is relatively little knowledge about its consequences for service work in general and specifically in knowledge-intensive business services (KIBS). We studied the impact of digitalization on psychological consequences for employees in tax consultancies as a special case of KIBS. We compare two tax consulting jobs with very different job demands, those of tax consultants (TCs) and assistant tax consultants (ATCs). The results show that the extent of digitalization at the workplace level for ATCs correlates significantly positively with their job satisfaction. For TCs, the same variable correlates positively with their work engagement. These positive effects of digitalization are mediated in the case of ATCs by the impact on important job characteristics. In the case of TCs, which already have very good working conditions, the impact is mediated by the positive effect on self-efficacy. Theoretical and practical consequences of these results are discussed.


2021 ◽  
Vol 13 (15) ◽  
pp. 8441
Author(s):  
Michal Hrivnák ◽  
Peter Moritz ◽  
Marcela Chreneková

The COVID-19 pandemic has exposed new aspects of sustainable entrepreneurship and the resilience of SMEs in the conditions of individual countries. This empirical study contributes to entrepreneurship sustainability literature and business resilience literature by estimating the impact of various utilized internal crisis management tools and state compensation measures on retaining the pre-crisis levels of employment after two waves of the pandemic on the conditions of a V4 country. The study adopts an econometric approach towards assessing the influence of key factors of mitigating the problems caused by the pandemic, and the results suggest a crucial role of digitalization, internal policies optimizing variable costs, and utilization of direct governmental supportive measures to compensate for restrictions in force for employment retention in knowledge-intensive SMEs. According to the results, knowledge-intensive SMEs appears to have increased resilience towards economic shocks due to the capability to swiftly change the management of ventures to adapt to a crisis.


2021 ◽  
Vol 15 (1) ◽  
pp. 6-18
Author(s):  
Ian Miles ◽  
◽  
Veronika Belousova ◽  
Nikolay Chichkanov ◽  
Zhaklin Krayushkina ◽  
...  

Knowledge-Intensive Business Services (KIBS) are problem-solvers for other organizations. The coronacrisis affects KIBS directly, but also means that their clients are confronting new problems. How are KIBS addressing these two sets of challenges? This paper draws on material available in the trade and industry press, on official reports and statistics, and the early academic studies addressing these themes. We find that KIBS have been active (alongside other organizations) in providing a substantial range of services aimed at helping their clients (and others) deal with various contingencies thrown up by the crisis. Not least among these is the need to conform to shifting regulatory frameworks, and requirements for longer-term resilience. KIBS themselves have had to adapt their working practices considerably, to reduce face-to-face interaction with clients and within teams collaborating on projects. Adaptation is easier for those whose tasks that are relatively standardized and codified, and it remains to be seen how far a shift to such activities - and away from the traditional office-based venues of activity - is retained as firms recover from the crisis. KIBS are liable to play an important role in this recovery from the crisis, and policymakers can mobilize their services. Some KIBS are liable to be critical for rendering economies more resilient in the face of future pandemics and we argue that these firms are also important for confronting the mounting climate crisis.


2021 ◽  
Vol 20 (7) ◽  
pp. 1296-1320
Author(s):  
Anna L. SABININA ◽  
Svetlana A. IZMALKOVA ◽  
Irina V. SYCHEVA ◽  
Aleksandr S. VASIN ◽  
Natal'ya A. SYCHEVA

Subject. We focus on activation of activities at the regional economy level to transform the linear model of production and consumption waste management into the most rational and environmentally sustainable cyclical model. Objectives. The aim is to develop a cyclical model for the rational organization of activities in the field of production and consumption waste management to reduce the volume of disposal to zero in the foreseeable future. Methods. The study employs methods of economic and statistical analysis and methods of project management theory. Results. The study presents a methodological approach to the organization and financing of rational and environmentally sustainable activities at the level of the Federal subject in the field of waste management, based on a cyclical model. To build the model, the following principles are used: consistency, complexity of basic elements, cyclical actions of progressive and recurrent nature, industry characteristics, constructive interaction of the State, business, banks and the population to reduce the impact on the environment. Conclusions. The implementation of the "Management of Production and Consumption Waste Based on the Principles of a Cyclical Model" regional project will enable to solve the problem of environmental pollution of territories, including the solid municipal waste. The project success is determined by the extent, to which the waste management sector of the regional economy is knowledge-intensive, technologically advanced, and financially secure to reduce the environmental impact in terms of adherence to the carbon neutrality policy.


Tribologia ◽  
2020 ◽  
Vol 290 (2) ◽  
pp. 91-98
Author(s):  
Wiesław ZWIERZYCKI ◽  
Kasper GÓRNY

In this article, the authors have characterized the main activities that reduce the impact of lubricants on the environment. To begin with, new solutions in the area of engine oils that reduce the emission of harmful substances in exhaust gases (“Low SAPS” oils) were discussed. Next, the activities concerning the improvement of biodegradability of lubricating oils used in devices in Nature Reserves, as well as in all of the “open lubrication systems” were characterized. Another problem was related to the non-toxicity (and other derivative features) of lubricants that may have incidental contact with a sensitive technological medium in production processes (in the food, pharmaceutical, and cosmetics industries). The last issue that was discussed concerns the compatibility of compressor oils with refrigerants in connection with the global exchange program of Freon for more environmentally friendly substances (currently, mainly affecting global warming to a lesser extent).


Sign in / Sign up

Export Citation Format

Share Document