scholarly journals Service outsourcing decisions – a process framework

2020 ◽  
Vol 13 (2) ◽  
pp. 171-194
Author(s):  
Suvituulia Taponen ◽  
Katri Kauppi

Purpose The purpose of this paper is to compare service outsourcing decisions between public and private organizations and against a theoretical decision-making framework to both understand differences across the sectors and to provide an outsourcing framework more suitable specifically for outsourcing (and for the public sector). Design/methodology/approach Multiple case studies, i.e. a study of phenomena (here outsourcing process) at various sites is used as an approach. Findings Findings indicate that public sector organizations are trailing behind private sector organizations in how the decision-making process is conducted and resourced. The authors suggest regular evaluation of service functions internally as a starting point for the outsourcing service decision-making process. Additionally, the market analysis should be done prior to cost analysis and benchmarking as the availability of suppliers more qualified than the internal process defines the make or buy decision. Research limitations/implications The newly developed framework based on empirical evidence includes the following phases: regular evaluation of service functions, market analysis, cost analysis and benchmarking and evaluating relevant service activities. Applying the framework improves the efficient delivery of outsourced public services and brings public sector outsourcing closer to the professionalism currently present in the private sector. Originality/value Choosing between in-house and outsourced service delivery is a fundamental decision in both private and public sector organizations. Previous outsourcing research has mostly focused on the private sector, with limited focus on the public sector’s outsourcing processes, yet understanding of the service outsourcing process is important in ensuring organizational competitiveness and cost efficiency.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Z. Elbashir ◽  
Steve G. Sutton ◽  
Vicky Arnold ◽  
Philip A. Collier

Purpose Recent research and policy reports indicate public sector organizations struggle to leverage information technology-based performance measurement systems and fail to effectively evaluate performance beyond financial metrics. This study aims to focus on organizational factors that influence the assimilation of business intelligence (BI) systems into integrated management control systems and the corollary impact on improving business process performance within public sector organizations. Design/methodology/approach The complete Australian client list was acquired from a leading BI vendor; and the authors surveyed all public sector organizations, receiving 226 individual responses representing 160 public sector organizations in Australia. Using latent construct measurement, structural equation modeling (SEM)-partial least squares is used to test the theoretical model. Findings When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities that are critical to assimilation in private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. When top management effectively manages knowledge importation from external entities to counteract deficiencies, public sector organizations effectively assimilate BI knowledge into performance measurement yielding strong process performance. Research limitations/implications When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities critical to assimilation in the private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. The research extends the theory behind organizational absorptive capacity by highlighting how knowledge importation can be used as an external source facilitating internal knowledge creation. This collaborative knowledge creation leads to affective assimilation of BI technologies and associated performance gains. Practical implications The results provide guidance to public sector organizations that struggle to measure and validate service outcomes under New Public Management regulations and mandates. Originality/value The results reveal that consistent with the philosophies behind New Public Management strategies, private sector measures for increasing organizational absorptive capacity can be applied in the public sector. However, knowledge importation appears to be a major catalyst in the public sector where the resources to retain skilled professionals with an ability to leverage contemporary technologies into service performance are often very limited. Top management team knowledge and skills are critical to effectively leveraging these internal and external knowledge creation mechanisms.


2016 ◽  
Vol 5 (4) ◽  
pp. 371-387 ◽  
Author(s):  
Sean D. Darling ◽  
J. Barton Cunningham

Purpose The purpose of this paper is to identify unique values and competencies linked to private and public sector environments. Design/methodology/approach This study is based on critical incident interviews with a sample of senior leaders who had experience in both the public and private sectors. Findings The findings illustrate distinct public and private sector relevant competencies that reflect the unique values of their organizations and the character of the organization’s environments. This paper suggests a range of distinct public sector competencies including: managing competing interests, managing the political environment, communicating in a political environment, interpersonal motivational skills, adding value for clients, and impact assessment in decision-making. These were very different than those identified as critical for the private sector environment: business acumen, visionary leadership, marketing communication, market acumen, interpersonal communication, client service, and timely and opportunistic decision-making. Private sector competencies reflect private sector environments where goals need to be specifically defined and implemented in a timely manner related to making a profit and surviving in a competitive environment. Public sector competencies are driven by environments exhibiting more complex and unresolvable problems and the need to respond to conflicting publics and serving the public good while surviving in a political environment. Originality/value A key message of this study is that competency frameworks need to be connected to the organization’s unique environments and the values that managers are seeking to achieve. This is particularly important for public organizations that have more complex and changing environments.


2019 ◽  
Vol 41 (6) ◽  
pp. 39-47 ◽  
Author(s):  
Sasidhar Reddy Bhimavarapu ◽  
Seong-Young Kim ◽  
Jie Xiong

Purpose Many public sector organizations have shown a consistent lack of capability to execute their strategic plans compared with private sector organizations. This failure explains why most public sector organizations are grappling with the dynamics of the twenty-first century in service delivery. Further, the strategy execution gap is vast in the public sector organizations than in the private sector organizations. The purpose of this paper is built based on the curiosity to develop a conceptual model that can close the strategy execution gap in public sector organizations. Design/methodology/approach The research adopted a qualitative research design, particularly, a case study research design approach as an ideal tool to conduct a holistic and in-depth survey of the trends in strategy execution in the public sector. Findings From the findings of the study, it has been found that five out of the nine strategy execution components that were investigated showed higher scores. These strategy execution components perceived to be vital by this study and were integrated into the MERIL-DE model, which will significantly contribute to closing the strategy execution gap in the public sector. Originality/value This research was built based on the curiosity to develop a conceptual model, the MERIL-DE model that can close the strategy execution gap in public sector organizations.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose The authors assumed PSM would be higher in the public sector, but they set up a trial to find out if this was the case. Design/methodology/approach To test their theories, the authors conducted two independent surveys. The first consisted of 220 usable responses from public sector employees in Changsha, China. The second survey involved 260 usable responses from private sector employees taking an MBA course at a university in the Changsha district. A questionnaire was used to assess attitudes. Findings The results found no significant difference between the impact of public sector motivation (PSM) on employee performance across the public and private sectors. The data showed that PSM had a significant impact on self-reported employee performance, but the relationship did not differ much between sectors. Meanwhile, it was in the private sector that PSM had the greatest impact on intention to leave. Originality/value The authors said the research project was one of the first to test if the concept of PSM operated in the same way across sectors. It also contributed, they said, to the ongoing debate about PSM in China.


2019 ◽  
Vol 35 (3) ◽  
pp. 345-358
Author(s):  
Chew Har Loke ◽  
Suhaiza Ismail ◽  
A.H. Fatima

Purpose The purpose of this paper is to empirically test Arnaud’s (2010) ethical climate index (ECI) of measuring ethical work climate (EWC) in the context of Malaysian public sector auditors (PSAs). Design/methodology/approach EWC is conceptualized as four main components with two sub-components. Questionnaires were distributed to the population of PSAs in the Malaysian National Audit Department (NAD). Factor analysis (principal component analysis [PCA]) was used to verify the components of EWC. Findings Results from PCA revealed that EWC, indeed, has four main components. Therefore, the findings of this study provide empirical evidence that validates Arnaud’s (2010) EWC model, although tested on PSAs in Malaysia. Research limitations/implications This paper has a limited purpose, which is to test whether the ECI could be applied to PSAs in Malaysia to derive the original four main components of Arnaud’s EWC. Thus, this study does not evaluate the EWC of PSAs or determine causal relationships between EWC and other variables; these are left to future studies. Practical implications The findings of this study confirm that Arnaud’s (2010) ECI is sufficiently resilient to be applied to the context of PSAs in Malaysia. Hence, future studies could use this index to measure EWC not only in the public sector but also in the private sector. Future research could also further test this index in different contexts. Originality/value Arnaud’s (2010) ECI was originally applied in the context of the private sector in a developed country. Hence, this study adds value by extending the ECI to the public sector in a developing country, Malaysia.


2019 ◽  
pp. 0734371X1988605
Author(s):  
Ines Mergel ◽  
Nicola Bellé ◽  
Greta Nasi

Attracting highly skilled IT talent has become a priority and an immense burden for government organizations—especially when they have other—higher paying—employment opportunities. We set out to explore why IT professionals choose a government job to make an impact on society. We aim at disentangling the effects of different types of motives, such as extrinsic, intrinsic, and other-oriented motivational forces on the decision to accept a challenging government IT job. We use self-determination theory (SDT) to analyze publicly available statements of former private sector IT professionals reporting their reason for joining 18F. Our study is one of the first attempts to use SDT as a comprehensive framework for conducting qualitative research into work motivation in the public sector. We shed light on the conceptual and empirical distinctiveness of motives, behaviors, and perceptions of prosocial impact, which are often lumped together in the public service motivation (PSM) literature. We contribute novel empirical evidence to a nascent stream of research that uses SDT to disentangle the intrinsic, prosocial, and purely extrinsic motives that drive individuals’ decisions to join public-sector organizations.


Author(s):  
C. G. Reddick

Electronic procurement (e-procurement) is one business-to-government e-commerce venture that can benefit from the Internet. Government e-procurement is different from private sector e-procurement because of concepts such as value for money, transparency and accountability, which may be considered the main benefits for the public sector. Public sector organizations have to meet multiple, often conflicting goals, and they are subject to constraints of a financial, legal, contractual, personnel and institutional nature. In addition, radical process changes from e-procurement can only be achieved with deep changes in bureaucratic practices. These changes cannot normally be achieved without either changes in the law or privatization (Panayiotou, Gayialis, & Tatsiopoulos, 2004).


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Merve Kılıç ◽  
Ali Uyar ◽  
Cemil Kuzey ◽  
Abdullah S. Karaman

PurposeThe objective of this study is to investigate whether the institutional environment is associated with the adoption of integrated reporting.Design/methodology/approachThe sample of the study is based on the firms included in the list of Fortune Global 500. The logistic regression analysis was run to test the proposed hypotheses.FindingsThe findings indicated that the code-law orientation and strength of the institutional quality are significantly associated (i.e. positively and negatively, respectively) with the integrated reporting of Fortune 500 companies. Firms are motivated for more transparency in stakeholder-oriented and weakly regulated contexts. Thus, stakeholder pressure is more influential than shareholder interest in motivating or forcing firms to issue integrated reports. Besides, there appears to be a trade-off between the public sector and the private sector in terms of ensuring an accountable and transparent business environment. If the public sector does not undertake its role in ensuring a transparent business environment, the private sector fills the gap. The results are robust to alternative sampling and methodologies.Research limitations/implicationsThis study implied that the stakeholder orientation of countries fosters the transparency and accountability of firms. Corporate behavior is impacted by the institutional strength or weakness of nations. The institutional theory provides an appropriate ground to understand drivers of corporate reporting practices of firms beyond firm-level characteristics.Practical implicationsThe adoption of integrated reporting framework by Fortune 500 companies can be leveraged to alleviate concerns about their social and environmental impacts. Policy-makers in the countries which have a weak institutional environment force or encourage their firms to increasingly meet the transparency and accountability demands of society.Social implicationsThe research findings might play an encouraging role in that various stakeholders (i.e. customers, public, civil organizations and press) should undertake active roles and responsibilities to encourage firms to behave in socially and environmentally responsible ways.Originality/valueThis study adds to the literature by examining the influence of the institutional environment on the adoption of integrated reporting, using recent international data, and focusing on the largest companies according to the Fortune's annual Global 500 list. This study is one of the first to examine the association between a set of governance characteristics (i.e. board size, board independence and board diversity) and integrated reporting adoption.


2017 ◽  
Vol 34 (9) ◽  
pp. 1402-1411 ◽  
Author(s):  
Jiju Antony ◽  
Bryan Rodgers ◽  
Elizabeth A. Cudney

Purpose Lean Six Sigma (LSS) as a process excellence has been widely adopted in both manufacturing and service organizations; however, its application in the public sector has not been widely explored. Is LSS still a myth or reality in our public sector organizations? The purpose of this paper is to make an attempt to debate about the use of LSS and its potential applications in the public sector context. Design/methodology/approach The initial approach is to critically evaluate the role of LSS in various public sector contexts, followed by showcasing four case studies from four different public sector settings: higher education, police service, public hospital and local government. Findings LSS methodology can be embraced by all public sector organizations to create efficient and effective processes to provide enhanced customer experience and value at reduced operational costs. Research limitations/implications This paper seeks to contribute to and broaden the limited body of evidence of the applicability of LSS to public sector organizations and identifies areas for further research and review. Practical implications LSS will continue to grow across many public sector organizations in Europe and other parts of the world over the forthcoming years. However, what will eventually determine if LSS is viewed by public sector organizations as just a passing management fad or not largely depends on the leadership and success of its execution. If LSS is deployed in its true sense across the public sector organizations at a global level, the hard cash savings generated can reach several billions. Originality/value The paper yields an immense value to both research scholars and practitioners who are engaged in the introduction of LSS as a business process improvement strategy to achieve and sustain competitive advantage. Moreover, this paper makes an attempt to dispel the myth of LSS which have been quite prevalent in many public sector organizations around us today.


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