Does outsourcing always work? A critical evaluation for project business success

2018 ◽  
Vol 25 (7) ◽  
pp. 2198-2215 ◽  
Author(s):  
Maqsood Ahmad Sandhu ◽  
Ahm Shamsuzzoha ◽  
Petri Helo
Keyword(s):  
Decision Making ◽  
Product Development ◽  
Success Factors ◽  
Driving Forces ◽  
Critical Evaluation ◽  
Future Research ◽  
Business Success ◽  
Research Approach ◽  
Content Type ◽  
Outsourcing Strategies

Purpose The purpose of this paper is to deal with the importance and obstacles of outsourcing strategy in project business in terms of product development perspectives. This strategy is intrinsically analyzed and evaluated with respect to the strategic business environments. Design/methodology/approach The objective of this research is to analyze the advantages and limitations of the outsourcing that have been identified in prior studies. This research has attempted to investigate the performance implications of outsourcing strategies in terms of theoretical considerations and implementation perspectives. Findings In this study, the authors have presented a general overview of outsourcing strategies in terms of both light and dark sides of this approach. Various driving forces of outsourcing strategy along with critical success factors are articulated within project to product development perspectives. Research limitations/implications Future research could be continued to measure various performance variables such as productivity, sales, revenues, career opportunities, manifest in power struggles, change jobs, change organizational cultures, etc. in multiple case companies, which affect with the success or failure of outsourcing arrangements. Practical implications The term outsourcing is nowadays a widely known business strategy, where manufacturing firms share partly or fully of their production process with outside organizations or suppliers. The research approach as articulated within this paper would be beneficial for project business organizations and specially the product designers and project managers for planning and developing their strategic business potentials with respect to outsourcing and in-sourcing decisions. Originality/value In this paper a high-level decision-making model for outsourcing and a cause and effect type framework are demonstrated with a view to ease the decision-making process for the organizations managers.

Customer competency for improving firm decision-making performance in e-commerce

foresight ◽  
2020 ◽  
Vol 22 (2) ◽  
pp. 205-222 ◽  
Author(s):  
Vivek Gupta ◽  
Laxmi Gupta ◽  
Sanjay Dhir
Keyword(s):  
Decision Making ◽  
Perceived Risk ◽  
Success Factors ◽  
Three Dimensions ◽  
User Generated Content ◽  
Future Research ◽  
Content Type ◽  
Internet Portal ◽  
Reasonable Price ◽  
Application Design

Purpose The purpose of this paper is to analyze customers’ purchasing behavior with respect to perceived benefit and the perceived risk towards customer competency in firms. In this research, the authors validate the concept of customer competency in eight dimensions (i.e. e-trust, quality of products and services, customer support, application design, reasonable price, availability of user-generated content, replacement and returns and risk in purchasing products) and examine empirically its impression on company’s decision-making performance. Design/methodology/approach The findings are based on an empirical analysis of survey data from 69 respondents and demonstrate a large, significant and positive relationship between customer competency and firm’s decision-making performance. Findings The results reveal that majorly three dimensions of competency, i.e. application design, reasonable price and user-generated content (UGC), will impact significantly the decision making performance of firm. This is the empirical study to conceptualize, operationalize and validate the concept of customer competency and to study its impact on decision-making performance. The validity of customer competency constructs as conceived and operationalized suggests the potential future scope by evaluating its relationship with possible antecedents and consequences. For practitioners, the result provides important guidelines for increasing firm’s decision-making performance through the use of customer behavior. Research limitations/implications Further in this research, it is critical to understand that other constructs of customer competency may likewise play an important part in the advancement of expectations of customers. These constructs comprise customers’ self-effectiveness, encouragement and innovation thinking (i.e. observed comparative advantage, complexity and compatibility) of business-to-customer firms in e-commerce. Future research studying these constructs could improve the understanding of success factors for e-commerce firms. The model used in this study can further be extended to understand the variance in a firm’s decision-making. Originality/value The prime target of this questionnaire was to gather all of the information about how consumers behave while interacting with e-commerce portals. The questions were based on the factors identified in literature reviews. Previous studies also look at consumer competency toward a particular internet portal and its vendors; however, through this survey, the authors want to look at how consumers behave while shopping on e-commerce portals. This was a clear representation of the authors’ research strategy.

Triggers and inhibitors of illegitimate customer complaining behavior

2014 ◽  
Vol 26 (4) ◽  
pp. 544-571 ◽  
Author(s):  
Zhuowei (Joy) Huang ◽  
Chen Zhao ◽  
Li Miao ◽  
Xiaoxiao Fu
Keyword(s):  
Hospitality Industry ◽  
Service Management ◽  
Driving Forces ◽  
Future Research ◽  
Research Approach ◽  
Frontline Employees ◽  
Structured Interviews ◽  
Content Type ◽  
Triggering Factors ◽  
Complaining Behavior

Purpose – The study aims to investigate the illegitimate customer complaining behavior (ICCB) in the hospitality industry from the perspective of frontline employees. In particular, this study identified ICCB incidents, ICCB triggering factors and inhibitors in the hospitality industry. Design/methodology/approach – A qualitative research approach was adopted in this study by using in-depth personal interviews. Twenty-six semi-structured interviews were conducted with frontline employees who had first-hand experiences with ICCB in the hospitality industry. The interviews were transcribed, coded and analyzed following the procedures of open coding, axial coding and selective coding. Findings – Analysis of the qualitative data has revealed 7 types of ICCB incidents, 11 ICCB triggering factors and 3 ICCB inhibitors in the hospitality industry, as perceived by frontline employees. The study also proposed a multiple-layer model of ICCB triggers and inhibitors based on the results. Four propositions are developed delineating three layers of driving forces and the dynamics between ICCB triggers and inhibitors that exert joint effects on ICCB. Research limitations/implications – Impacts of various cultural settings, different hospitality business settings (hotels vs restaurants) and profile information of frontline employees on ICCB need to be examined in future research. Originality/value – Findings of this study contribute to the customer complaining literature and the hospitality service management literature by offering the frontline employees’ perspective of ICCB. Hospitality businesses can benefit from this study by using the research findings to develop more effective company policies and training programs to recognize, monitor and resolve ICCB incidents.

Implementing an integrated ABC and TOC approach to enhance decision making in a Lean context

2014 ◽  
Vol 31 (8) ◽  
pp. 906-920 ◽  
Author(s):  
Majed Alsmadi ◽  
Ahmad Almani ◽  
Zulfiqar Khan
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Real Life ◽  
Future Research ◽  
Research Approach ◽  
Accounting System ◽  
Product Mix ◽  
Content Type ◽  
Action Research Approach

Purpose – The purpose of this paper is to implement an integrated activity-based costing (ABC) and theory of constraints (TOC) approach to enhance decision making in a Lean company. Design/methodology/approach – Based on the literature, this paper proposes an integrated ABC and TOC approach and applies it to a Lean plastic manufacturing company to improve its product-mix decision. Findings – The results of the case study show that the current conventional product-mix decision used by the company and the proposed integrated approach can give significantly different results concerning the optimal product-mix and the associated bottlenecks. Moreover, the paper suggests that managers who implement Lean production without utilising a supportive management accounting system may experience disappointing financial results. Research limitations/implications – The validation of the suggested method is based on a single case study with an action research approach. For future research, the authors suggest the implementation of the approach in different industries. Practical implications – Overall, the integration of ABC and TOC provides managers with an accurate, timely and reliable tool that can help in making decisions about pricing, production line development, process improvements and product-mix. Originality/value – This paper contributes to Lean and management accounting literature by demonstrating the value of a method of integrating ABC and TOC. Also a case study is chosen for the empirical aspect of the study as there are no case studies available in the literature that illustrate a real life case of integrating ABC and TOC within Lean companies as an alternative to the current used cost accounting systems.

Disguising diversification for innovation

2019 ◽  
Vol 11 (1) ◽  
pp. 119-138
Author(s):  
Michal Lysek
Keyword(s):  
Product Development ◽  
Defense Mechanism ◽  
Innovation Management ◽  
Theory And Practice ◽  
Annual Reports ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
External Forces ◽  
Do So

Purpose Axis, HMS and Sectra are three Swedish companies whose managers argue that you should never be radical on two fronts: creating new products for new markets at the same time. This paper aims to show however that while Axis’ managers claim not to be radical on two fronts, they still perform horizontal diversification, but they do so by disguising it as product development. Just like certain animals disguise themselves for protection, Axis’ managers disguise diversification as a defense mechanism, to protect themselves. In so doing, they have learned to manage the dynamics of innovation, by shifting between periods of focus and diversification. Design/methodology/approach This study was based on an inductive research approach influenced by grounded theory. In total, 32 interviews were performed with top and middle-line managers from three Swedish companies: Axis, Sectra and HMS. A total of 91 A4 transcript pages, 66 A4 e-mail pages, 52 annual reports (from 1999 to 2017) and 256 company presentations and newspaper articles (from 1988 to 2015) were collected and analyzed. Open and selective coding yielded 105 sub-categories, which were grouped into four main categories and presented as detailed descriptions. The results were based on the interpretation of those descriptions and related to disguise as a defense mechanism in psychology. Findings Innovation is a difficult process often met with hostility. Axis’ managers however have found a way to go beyond their existing business domain, while still protecting themselves from internal and external opposing forces that would go against such a risky strategy. To do so, they first expand their existing business domain. Then they perform horizontal diversification and disguise it as product development, as a defense mechanism to protect their desire to create innovation from managers who would oppose their risky strategy. In so doing, they convince other stakeholders that innovation through diversification is the best strategy for their company. Research limitations/implications This study was only performed at three Swedish technological companies. For future research, other Swedish companies could be included, and not only technological companies either, to explore whether diversification is considered a strategy that needs to be disguised in other businesses as well, and how managers from those businesses deal with internal and external forces. Practical implications Managers from Axis, Sectra and HMS are fully aware that innovation as well as diversification is difficult. Ideas that seem interesting and full of potential for some people may seem too risky and dangerous for others. To protect diversification as a strategy for innovation, Axis’ managers have found a way to disguise diversification, and make it seem less dangerous. In so doing, they are able to diversify and create innovation. A strategy for disguising diversification therefore has practical managerial implications of how managers can deal with internal and external forces that would go against such a strategy. Originality/value This study connects defense mechanisms in psychology with innovations strategy and innovation management and solves a practical dilemma that managers often struggle with: how to create innovation despite barriers that exists and oppose such a strategy. Managers will most likely always face different barriers to innovation, and perhaps solving them is not possible. This study shows how Axis’ managers have found a way to go around this problem, when solving it is not possible. This strategy thus shows originality and value for both theory and practice related to innovations strategy and innovation management.

scholarly journals Unbundling practice: the unbundling of big deal journal packages as an information practice

2020 ◽  
Vol 76 (5) ◽  
pp. 1051-1067
Author(s):  
Asen O. Ivanov ◽  
Catherine Anne Johnson ◽  
Samuel Cassady
Keyword(s):  
Decision Making ◽  
Future Research ◽  
Organizational Studies ◽  
Research Approach ◽  
Content Type ◽  
Information Behaviour ◽  
The Social ◽  
Prior Literature ◽  
Information Practice ◽  
The Cost

PurposeThe purpose of this article is to introduce a theoretical framework and approach for studying the evaluation and decision-making practices through which academic librarians attempt to reduce the cost of electronic journal subscriptions – an organizational practice known as the unbundling of big deal journal packages.Design/methodology/approachThe article presents a literature-based conceptual analysis of several fields to delineate the elements of the practice of unbundling of big deal journal packages. Beyond analysing the prior literature, the discussion is supported by empirical findings from a pilot study on the topic conducted by two of the article's authors.FindingsThe main finding of the article is that the unbundling of big deal packages is a case of what sociologist refers to as decision-making in a social context. By reviewing previous studies, the article identifies the social and material elements constitutive of this practice. This, in turn, allows to develop questions and concepts for future research on the topic and to position it as an area of inquiry within the field of information behaviour/practices.Originality/valueThe article is the first attempt to conceptualize the unbundling of big deal journal packages by highlighting its phenomenological status as a type of information practice. In addition, the article proposes a research approach for studying this type of information practice by drawing on insights from the information behaviour/practice literature and enriching them through practice theory contributions in organizational studies and sociology.

Leaving a joint audit system: conditional fee reductions

2014 ◽  
Vol 29 (2) ◽  
pp. 131-152 ◽  
Author(s):  
Claus Holm ◽  
Frank Thinggaard
Keyword(s):  
Audit Quality ◽  
Theory Development ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Audit Firm ◽  
Audit System ◽  
Interaction Terms ◽  
Audit Firms ◽  
Audit Fee

Purpose – The authors aim to exploit a natural experiment in which voluntary replace mandatory joint audits for Danish listed companies and analyse audit fee implications of using one or two audit firms. Design/methodology/approach – Regression analysis is used. The authors apply both a core audit fee determinants model and an audit fee change model and include interaction terms. Findings – The authors find short-term fee reductions in companies switching to single audits, but only where the former joint audit contained a dominant auditor. The authors argue that in this situation bargaining power is more with the auditors than in an equally shared joint audit, and that the auditors' incentives to offer an initial fee discount are bigger. Research limitations/implications – The number of observations is constrained by the small Danish capital market. Future research could take a more qualitative research approach, to examine whether the use of a single audit firm rather than two has an effect on audit quality. The area calls for further theory development covering audit fee and audit quality in joint audit settings. Practical implications – Companies should consider their relationship with their auditors before deciding to switch to single auditors. Fee discounts do not seem to reflect long-lasting efficiency gains on the part of the audit firm. Originality/value – Denmark is the first country to leave a mandatory joint audit system, so this is the first time that it is possible to study fee effects related to this.

The relationship between MNCs’ strategies and executive staffing

2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Global Strategy ◽  
Business Strategies ◽  
Future Research ◽  
Research Approach ◽  
Global Integration ◽  
Content Type ◽  
Managerial Implications ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

CEO statements on racial inequity – (how) do they matter to shareholders?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pyemo Afego ◽  
Imhotep Alagidede
Keyword(s):  
Chief Executive Officers ◽  
Social Issues ◽  
Chief Executive ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Racial Injustice ◽  
Communication Decisions ◽  
Executive Officers ◽  
The Impact

Purpose The purpose of this study is to explore how citizen protests against perceived acts of racial injustice impact on share prices of companies who weigh in on the protests. In particular, corporate statements that directly address the issues around the protests are identified and possible mechanisms underlying how these may impact shareholder value are discussed. Design/methodology/approach The authors first use a qualitative research approach of content and sentiment analysis to track how companies or their chief executive officers (CEOs) present their stance against racial injustice, as represented by their use of linguistic markers. Then, the authors use an event study methodology to assess the response from stock market participants. Findings The findings suggest that CEOs primarily convey their stance using language that is emotive and empathic. In addition, shareholders earn a significant abnormal return of 2.13%, on average, in the three days following the release of the statements. Research limitations/implications This study considered only US-listed companies. The sample size, also, is relatively small. Institutional and cultural differences across countries may also vary. Thus, future research could explore the extent to which the findings generalize to other contexts. Practical implications Results provide insights to top managers who communicate with various stakeholders on emotionally charged social issues. Findings also offer insights on the timing of trades for investors and arbitrageurs. Social implications Findings contribute to the understanding of corporate behaviour in times of social upheaval. Insights from the study may also be used to inform corporate communication decisions about important social issues. Originality/value This study brings into focus the role that affective appeal and moral emotion can play in evoking motivation for corporate activism, and the impact that this has on investor opinions’ formation process.

The effects of brand equity and failure severity on remedy choice after a product recall

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sascha Raithel ◽  
Alexander Mafael ◽  
Stefan J. Hock
Keyword(s):  
Decision Making ◽  
Brand Equity ◽  
Probit Model ◽  
Future Research ◽  
Product Recalls ◽  
Product Recall ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Content Type ◽  
Failure Severity

Purpose There is limited insight concerning a firm’s remedy choice after a product recall. This study aims to propose that failure severity and brand equity are key antecedents of remedy choice and provides empirical evidence for a non-linear relationship between pre-recall brand equity and the firm’s remedy offer that is moderated by severity. Design/methodology/approach This study uses field data for 159 product recalls from 60 brands between January 2008 to February 2020 to estimate a probit model of the effects of failure severity, pre-recall brand equity and remedy choice. Findings Firms with higher and lower pre-recall brand equity are less likely to offer full (vs partial) remedy compared to medium level pre-recall brand equity firms. Failure severity moderates this relationship positively, i.e. firms with low and high brand equity are more sensitive to failure severity and then select full instead of partial remedy. Research limitations/implications This research reconciles contradictory arguments and research results about failure severity as an antecedent of remedy choice by introducing brand equity as another key variable. Future research could examine the psychological process of managerial decision-making through experiments. Practical implications This study increases the awareness of the importance of remedy choice during product-harm crises and can help firms and regulators to better understand managerial decision-making mechanisms (and fallacies) during a product-harm crisis. Originality/value This study theoretically and empirically advances the limited literature on managerial decision-making in response to product recalls.

scholarly journals Individual goals and social preferences in operational decisions

2019 ◽  
Vol 39 (1) ◽  
pp. 116-137 ◽  
Author(s):  
Nienke Hofstra ◽  
Wout Dullaert ◽  
Sander De Leeuw ◽  
Eirini Spiliotopoulou
Keyword(s):  
Decision Making ◽  
Social Preferences ◽  
Operational Planning ◽  
Future Research ◽  
Monetary Incentives ◽  
Content Type ◽  
Planning Decisions ◽  
Multiple Data ◽  
Human Decision ◽  
Insight Into

Purpose The purpose of this paper is to develop propositions explaining the influence of individual goals and social preferences on human decision making in transport planning. The aim is to understand which individual goals and social preferences planners pursue and how these influence planners’ decisions. Design/methodology/approach Propositions are developed based on investigation of decision making of transport planners in a Dutch logistics service provider using multiple data collection methods. Findings The study shows how decision making of transport planners is motivated by individual goals as well as social preferences for reciprocity and group identity. Research limitations/implications Further research including transaction data analysis is needed to triangulate findings and to strengthen conclusions. Propositions are developed to be tested in future research. Practical implications Results suggest that efforts to guide planners in their decision making should go beyond traditional (monetary) incentives and consider their individual goals and social preferences. Moreover, this study provides insight into why transport planners deviate from desired behaviour. Originality/value While individual decision making plays an essential role in operational planning, the factors influencing how individuals make operational planning decisions are not fully understood.

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