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1 – 10 of over 1000Erik de Waard, Peter de Bock and Robert Beeres
A typical governance challenge that has emerged with the introduction of shared service centers and other forms of service-related centralization within organizations is how to…
Abstract
Purpose
A typical governance challenge that has emerged with the introduction of shared service centers and other forms of service-related centralization within organizations is how to balance horizontal integration with vertical accountability. From a transaction costs perspective, this study aims to analyze the relationship between intra-organizational demand and supply linkages, asset specificity and coordination costs.
Design/methodology/approach
For this purpose, a case study has been conducted within a European military organization that has undergone major budget cuts, forcing it to start following a strategy of functional concentration with captive buying and selling relationships between internal customers and suppliers.
Findings
The research findings clarify that organizational hybridity may be the result. In a supplier role, the organizational elements are primarily concerned with efficiency, while operational effectiveness predominates when they are in the customer position. Also, the results show that focusing on standardized service delivery may sometime carry too far. When services are treated as being standard, while in reality, they ask for a more tailored approach, productive internal demand and supply collaboration will be put at risk. Moreover, the organizational actions needed to restore the internal supply chain’s efficacy will seriously increase transaction costs.
Originality/value
Despite being mentioned as a key governance category, actual research on the practicalities of internal captive buying and selling, in relation to the functioning of SSCs, is still lacking. To advance on this topic, the present research introduces knowledge from supply chain management theory, where dedicated inter-organizational buyer–supplier interaction in the automotive industry has already received academic attention.
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Ilan Oshri, Julia Kotlarsky, Joseph W. Rottman and Leslie L. Willcocks
The purpose of this paper is to review recent trends and issues in global IT sourcing and to introduce papers in the special issue: “Social, managerial and knowledge aspects in…
Abstract
Purpose
The purpose of this paper is to review recent trends and issues in global IT sourcing and to introduce papers in the special issue: “Social, managerial and knowledge aspects in global IT sourcing”.
Design/methodology/approach
The paper examines trends by regions including Brazil, Russia, India and China and also trends in Captive Centres and their strategies.
Findings
There will be a continuing rise in outsourcing revenues for global outsourcing, with BPO overtaking ITO within five years. Multi‐sourcing will continue to be the dominant trend. India will continue to dominate but its role will change. China heralds promise but will still struggle to achieve scale in Western European and North American markets. Emerging country competition will intensify. Software as a service will be a “slow burner” but will gain momentum in the second half of the next decade. Near‐shoring will be a strong trend. Outsourcing, by offering a potential alternative, will help discipline in‐house capabilities and service. Knowledge process outsourcing will increase as the BRIC and emerging countries move up the value chain. Captive activity – both buying and selling – will increase (see below). Outsourcing successes and disappointments will continue as both clients and suppliers struggle to deal with a highly dynamic set of possibilities
Originality/value
The paper is of value to both academics and practitioners working in the field of IT sourcing. The study of captive centres is in its early stages and the paper introduces further work in this area.
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Mary C. Lacity, Leslie P. Willcocks and Joseph W. Rottman
To identify key lessons, trends and enduring challenges with global outsourcing of back office services.
Abstract
Purpose
To identify key lessons, trends and enduring challenges with global outsourcing of back office services.
Design/methodology/approach
The authors extract lessons, project trends, and discuss enduring challenges from a 20 year research program conducted by these authors and their extended network of co‐authors and colleagues.
Findings
The authors identify seven important lessons for successfully exploiting the maturing Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) markets. The lessons require back office executives to build significant internal capabilities and processes to manage global outsourcing. The authors predict 13 trends about the size and growth of ITO and BPO markets, about suppliers located around the world, and about particular sourcing models including application service provision, insourcing, nearshoring, rural sourcing, knowledge process outsourcing, freelance outsourcing, and captive centers. The authors identify five persistent, prickly issues on global outsourcing pertaining to back office alignment, client and supplier incentives, knowledge transfer, knowledge retention, and sustainability of outsourcing relationships.
Originality/value
The authors present some experimental innovations to address these issues.
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Reinald A. Minnaar and Ed G.J. Vosselman
This paper aims to explore management control structure change related to the development of a shared service centre (SSC).
Abstract
Purpose
This paper aims to explore management control structure change related to the development of a shared service centre (SSC).
Design/methodology/approach
The paper explores a transaction costs economics perspective (TCE‐perspective) on management control structure change related to the development of an SSC. Particularly, it explores and challenges the scope of such a perspective both in terms of contents (i.e. the nature of management control related to the dimensions of transactions) and process (i.e. the way change is effectuated). It does so by theorizing as well as empirically investigating management control structure change through a case study at PCM (a Dutch newspaper publisher).
Findings
The theoretical analysis broadens existing frameworks of management control structures by particularly pointing to the possibility of including governance structures for internal transactions and exit threats (connected to a market mechanism) in the management control structure of an organization. However, the paper's empirical investigations challenge the broader framework: the possibility of an exit threat was not explicitly considered by top management (“the designer” of management control). More profoundly, empirical investigations challenge the calculative approach of the change and show that the change in management control is to a large extent a drifting process.
Research limitations/implications
An instrumental calculative approach towards SSC‐related management control change should be complemented with a relational perspective on such change, in order to further explore its drifting character.
Practical implications
A transaction costs economics approach to change in management control might provide practitioners with insights into the efficiency of specific management control structures.
Originality/value
The paper contributes to the extant knowledge by both exploring and challenging a TCE‐perspective on SSC‐related changes in management control.
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The study aims to add to the knowledge of governance and control aspects of intrafirm relationships by exploring a transaction costs economics perspective (TCE perspective) on…
Abstract
Purpose
The study aims to add to the knowledge of governance and control aspects of intrafirm relationships by exploring a transaction costs economics perspective (TCE perspective) on governance and management control structure choices related to the development of a shared service center (SSC).
Design/methodology/approach
The notion of governance and control in SSC organizations is explored and a TCE model is developed to analyze management control structure choices for SSC governance. The nature of internal transactions is related to the dimensions of transactions. Then an example case study is used to illustrate the application of the theoretical model.
Findings
The theoretical analysis broadens existing frameworks of management control structures by particularly pointing to the possibility of including governance structures for internal transactions and exit threats (connected to a market mechanism) in the management control structure of an organization. Confrontation with the case example illustrates that the possibility of an exit threat was not explicitly considered by top management (“the designer” of management control). Although the TCE model may be a useful tool for analysis purposes, it has little explanatory power in this particular case. Organizational change processes toward SSCs are complex and can only partly be examined with conventional economics-based approaches such as TCE.
Research limitations/implications
Governance and control of SSCs is conceptually theorized, using an instrumental economics approach. The case study is not generalizable but illustrates the use of the model in a particular situation. To understand governance and control change within SSC organizations, more longitudinal case studies are needed.
Practical implications
A TCE approach to governance and control choices regarding SSCs might provide practitioners with insights into the efficiency of specific management control structures.
Originality/value
This chapter contributes to the extant knowledge by both exploring and challenging a TCE perspective on SSC-related changes in management control.
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Greenko, a renewable power generating company investing in biomass, small and medium hydro power and wind power projects, had projected to achieve 1GW (Giga Watt = 1000 Mega Watt…
Abstract
Greenko, a renewable power generating company investing in biomass, small and medium hydro power and wind power projects, had projected to achieve 1GW (Giga Watt = 1000 Mega Watt) of installed capacity by March 2015. The company had been financing its projects with debt from Indian banks and financial institutions on a project finance basis and it had to now decide whether to refinance the project finance debt with an international bond issue of USD 550 million. The case provides an opportunity to discuss the public policy and financing aspects of renewable energy in India.
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In February 2015, Suzlon had just completed its financial and asset restructuring, following financial default after rapid growth through debt financed acquisitions in the…
Abstract
In February 2015, Suzlon had just completed its financial and asset restructuring, following financial default after rapid growth through debt financed acquisitions in the financial boom ending in 2008. The restructuring resulted in a significant decrease in the promoter's equity stake. Suzlon now has to decide how to respond to an offer by the DilipSanghvi Group, promoters of Sun Pharma, to acquire a large equity stake in Suzlon for Rs. 1,800 crore. If Suzlon were to accept the offer then both the existing promoters and the DilipSanghvigroup would have the same stake of about 22% each. The case will help students examine the need to align financing and business strategy on the same plane. It will also help them understand details about restructuring of financial and business strategy in the face of financial distress.
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In the wake of the December 2015 Paris COP21 (Conference of Parties), and India's announced renewable energy commitments, Reliance Power is reviewing its renewable energy…
Abstract
In the wake of the December 2015 Paris COP21 (Conference of Parties), and India's announced renewable energy commitments, Reliance Power is reviewing its renewable energy investments to arrive at a long term strategy for the role of renewable energy in its power generation portfolio and the financing of renewable projects. The case reviews the Indian government's policies to promote renewable energy; the evolution of the renewable energy sector; and Reliance Power's financing of renewable energy investments. The case requires identification of alternative long term strategies and their financing implications. This case serves as an introduction to renewable energy from the perspective of Reliance Power, a large private power generator of the country. These projects also provide a learning opportunity for Reliance Power to deal with fast evolving renewable technologies.
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Bella Belerivana Nujen, Lise Lillebrygfjeld Halse, Rickard Damm and Hallgeir Gammelsæter
Against the recent trend toward reversed global outsourcing, the purpose of this paper is to provide insights on how the internal process can be handled once the decision on…
Abstract
Purpose
Against the recent trend toward reversed global outsourcing, the purpose of this paper is to provide insights on how the internal process can be handled once the decision on reverse outsourcing has been made. The authors focus in particular on in-house knowledge and technology requirements.
Design/methodology/approach
To explore the topic at hand, the researchers conducted in-depth semi-structured interviews with five companies operating in two different industry sectors.
Findings
Reversed outsourcing accentuates challenges relating to retained knowledge. When embarking on reversed outsourcing, companies need to acknowledge the effort to revive and renew capabilities in order to perform technical operations and advanced manufacturing production.
Research limitations/implications
The research is based on case studies in a Scandinavian context. Further empirical research from other high-cost locations is needed to validate the findings.
Originality/value
Explorative qualitative research is scarce in the emergent literature on reversed outsourcing. The paper provides practical and theoretical insights into how to handle diminishing knowledge in companies that are re-evaluating their sourcing strategies. It adds a knowledge dimension within the emergent literature. A framework for key success factors and propositions is also provided.
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Sidhartha Harichandan and Sanjay Kumar Kar
The purpose of this study is to explore the determinants influencing industrial adoption of green hydrogen amidst the global transition towards sustainability. Recognizing green…
Abstract
Purpose
The purpose of this study is to explore the determinants influencing industrial adoption of green hydrogen amidst the global transition towards sustainability. Recognizing green hydrogen as a pivotal clean energy alternative for industrial applications is critical for understanding its potential integration into sustainable practices.
Design/methodology/approach
This research examines the impact of factors such as innovativeness, perceived ease of use, user comfort, optimism and governmental policies on the industrial intention towards green hydrogen usage. Using responses from 227 Indian industry professionals and conducting analysis via the SmartPLS software, the study reveals a discernible discomfort among industrial workers pertaining to the daily application of green hydrogen.
Findings
The research presents an array of policy recommendations for stakeholders. Emphasized strategies include the introduction of green hydrogen certificates, sustainable public procurement mechanisms, tax incentives, green labelling protocols and the establishment of a dedicated hydrogen skill development council, all of which can significantly influence the trajectory of green hydrogen adoption within the industrial sector.
Originality/value
This research synthesizes various elements, from industry perception and challenges to policy implications, presenting a holistic view of green hydrogen’s potential role in industry decarbonization and SDG realization. In essence, this study deepens not only the empirical understanding but also pioneers fresh theoretical frameworks, setting a precedent for subsequent academic endeavours.
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