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This paper aims to explain how small- and medium-sized firms (SMEs) create information technology (IT) business value through blended IT outsourcing (ITO). The explanatory framework it proposes enables SMEs to replicate IT capability outcomes (i.e. enhance their economic, strategic and technological competences, namely, ITO success) by endorsing an ITO strategy catalyzed by IT vendor integration.

This study uses covariance-based structural equation modeling to test the proposed research model. Data are collected from 251 knowledge-intensive business SMEs located in Science and Technology Parks in Spain.

The results demonstrate empirically that SMEs can replicate IT capability benefits (i.e. enhance their non-IT competences) through blended ITO in which IT, conceptualized as a transversal supporting activity, is outsourced to an IT vendor while the value creation process remains with the buyer. The integration (i.e. process integration and information sharing) of an IT-proficient vendor catalyzes ITO success. More specifically, the results show that, although process integration is not directly related to competence enhancement, fosters information sharing, which directly facilitates ITO success. The results also show that IT vendor proficiency accounts for ex ante trust.

Managers should think of transformational ITO as a strategy to enhance firm competences. For blended ITO strategies to succeed, managers must have a comprehensive understanding of the business they run, as it is important to create conditions that foster inter-firm information sharing. To achieve these conditions, managers should take special care in selecting boundary spanners, who are the pivotal links in competence enhancement.

While most research focuses on ongoing trust (i.e. trust develops as ITO evolves), this study focuses on initial (i.e. ex ante) trust and analyzes IT vendor proficiency (expert, experienced and reputed) to examine trust as an antecedent of ITO. This study also draws on previous conceptualizations of vendor integration to develop and analyze a two-step integration model to explain how IT vendor integration (i.e. process integration and information sharing) catalyzes enhancement of the buyer’s non-IT competences. This study focuses on SMEs, which are often neglected in ITO studies.

To examine the development of research into the relationship between business process outsourcing (BPO) and innovation, a bibliometric methodology utilizing quantitative analytical methodologies was used. With the aid of a visualization analysis of scientific publications, this study also assessed the state of BPO and innovation practices.

Using the Web of Science database, articles on BPO and innovation that published between 1992 and 2022 were retrieved. Records that had been extracted were examined in terms of publication year, nation, journal, subject area, authors and affiliations with organizations. The research on acupuncture for pain relief was visualized using the VOSviewer application.

An analysis of 219 original and review papers found that during the past 30 years, the overall number of publications has fluctuated constantly. The London University, the Copenhagen Business School and the London School of Economics were the institutions that produced the most articles in this topic. The three main categories of research that emerged from a network analysis based on the co-occurrence of keywords are innovation, outsourcing and performance.

A BP-innovation model must be created, and BPO must go beyond operational duties to incorporate management-wide shared strategic decisions in order to ensure improved performance of the firms. BPO enables a company's management to share knowledge and expertise about the strategic difficulties of outsourcing. A variety of technological and non-technological resources must also be considered when integrating an information technology (IT) infrastructure into BPO decisions in order to achieve greater performance.

Validity of the paper can be justified by it contribution to the existing knowledge. First, linking BPO and innovation – by integrating the arguments of various academics, the study unifies the disparate components and contentious discussions in the relationship between BPO and innovation. Second, this study highlights a research trend, significant studies, relevant terms and concepts in the real world. Third, the study provides future researchers with a tip for statistically analyzing BPO, particularly in light of innovation.

Researchers in the field recognize the importance of the relationship between contractor and contractee in the process of information technology (IT) outsourcing. However, little is known about the impact of the manager's profile in this process. Thus, the objective of this research was to analyze the impact of the perception of competence, autonomy and relationship of public managers on relational governance (RG), as well as, to identify the effect of perceived control in this relationship.

This study uses a quantitative approach to investigate the impact of the behavioral characteristics of IT managers from the self-determination theory (SDT). The data were collected in Brazilian public institutions active in the areas of education, finance, statistics and technology, and the hypotheses were identified and evaluated using the technique of partial least squares structural equation modeling (PLS-SEM).

The results identified that managers' self-determination is related to the perception of control, which, consequently, impacts the RG by providing feelings of competence and autonomy capable of building a beneficial relationship with the IT provider.

This study promotes the understanding that upper management needs to support the autonomy of managers to increase their levels of intrinsic motivation when managing supplier deliveries.

The application of SDT to the IT outsourcing context provides new insights into the mediation of perceived control by explaining the relationship between managers' expectations and motivations as an important driver for RG.

Los investigadores en la materia reconocen la importancia de la relación entre contratista y contratado en el proceso de externalización de las tecnologías de la información (TI). Sin embargo, poco se sabe sobre el impacto del perfil del gestor en este proceso. Así, el objetivo de esta investigación fue analizar el impacto de la percepción de competencia, autonomía y relación de los gestores públicos en la gobernanza relacional (GR), así como, identificar el efecto del control percibido en esta relación.

Este estudio utiliza un abordaje cuantitativo para investigar el impacto de las características de comportamiento de los gestores de TI a partir de la teoría de la autodeterminación (TAD). Los datos fueron recolectados en instituciones públicas brasileñas que actúan en las áreas de educación, finanzas, estadística y tecnología, y las hipótesis fueron identificadas y evaluadas utilizando la técnica de modelado de ecuaciones estructurales por mínimos cuadrados parciales (PLS-SEM).

Los resultados identificaron que la autodeterminación de los directivos está relacionada con la percepción de control, en consecuencia, repercute en el GR al proporcionar sentimientos de competencia y autonomía capaces de construir una relación beneficiosa con el proveedor de TI.

Este estudio promueve la comprensión de que la alta dirección necesita apoyar la autonomía de los directivos para aumentar sus niveles de motivación intrínseca a la hora de gestionar las entregas de los proveedores.

La aplicación de la teoría de la autodeterminación al contexto de la subcontratación de TI proporciona nuevos conocimientos sobre la mediación del control percibido al explicar la relación entre las expectativas y motivaciones de los directivos como un importante impulsor de la GR.

The ecosystem concept has attracted attention in information system research to explain business competition, innovation and many other emerging phenomena. Existing studies focus more on a single ecosystem type or a single ecosystem goal and pay little attention to the ecosystem’s evolution. The objective of the study is to investigate the factors that impact the evolution of the information ecosystem (IE) to gain a better understanding of strategic thinking.

The IE involves many actors, so the multi-case study approach is conducted with purposeful sampling to recruit all the significant ecosystem actors. The collected qualitative data are analyzed by coding data, exploring data relationships and structuring pattern steps; institutional theory is used as a theoretical framework.

The results demonstrate that industry practices, laws and regulations, new actors and the mimetic pressure of outsourcers drive the growth of the ecosystem. Strategy intention, cost pressure and normative pressure all contribute to the IE’s evolution.

The concept of ecosystems has attracted attention in information system research. The study investigates the factors contributing to the evolution of the IE from an institutional theory perspective. Our suggestion is that new players can find a niche in offering information technology (IT)/ information services (IS)-related solutions to survive in the ecosystem; however, they need to pay attention to the normative pressure.

The construction industry’s daily processes demand heavy data usage and communication between project participants to meet client requirements. Thus, the application of information technology in project implementation has been increasing in the construction sector (CS) lately. However, the same cannot be seen in public sectors responsible for implementing government projects in South Africa. This study aimed to investigate the causes and effects of the underutilisation of information communication technology (ICT) in the building section of a public sector in a municipality in South Africa.

A qualitative approach was adopted for the study, using a public sector in one of the municipalities as a case study. Face-to-face interviews were conducted among the building unit workers, using unstructured interview questions. The data collected were analysed using the ATLAS.ti software.

The findings indicate a lack of understanding of existing and newly available ICT software and hardware technology among staff within the building technology due to lack of digitalisation in construction projects implementation, inadequate system upgrades, lack of adequate ICT resources, lack of financial resources for internet and software application subscriptions and lack of ICT training leading. The issues mentioned above have led to the outsourcing of projects professionals, slow pace of electronic emails, untrained professionals, usage of different and unlicensed software, resulting in the underutilisation of ICT within the whole building section. This change also adversely affects all officials, especially the junior officials who have graduated using the most recent ICT technology during their studies.

The building department of only one public sector was used for the study; therefore, the findings may not be generalisable. The case study public sector’s name is withheld for confidentiality purposes.

Adequate change management and continuous development, combined with the allocation of proper resources, would be necessary for all staff members. Enormous investments had to be made in the ICT equipment by providing a sufficient budget in the building section of the public sectors. The building section within public sectors should provide change management to all aged skills staff by attending seminars to learn new ICT technology applied within its work environment.

The study established the causes of the underutilisation of ICT in the CS, especially in the public work departments and municipalities, and how this contributes to service delivery.

The paper aims to investigate the difference in total factor productivity (TFP) among those firms with and without outsourcing in a developing country like Vietnam. Also, it explores the effect of outsourcing activities on total factor productivity with a specified concentration on the Vietnamese small and medium-sized enterprises (SMEs).

The panel data set of SMEs used in this study was originated from biannual surveys conducted under the collaboration between educational organizations and government agencies: Stockholm School of Economics (SSE), Department of Economics – the University of Copenhagen, the Institution of Labor Studies and Social Affairs (ILSSA) in the Ministry of Labor, Invalids and Social Affairs (MOLISA). In this study, the model is developed based on the production function in accordance with the model of Girma and Görg (2004). The firms’ TFP is the difference between the actual and the predicted output as with the approach by Levinsohn and Petrin (2003).

This study finds out that firms with outsourcing have higher total factor productivity than those without outsourcing activities. In addition, the more firms spend on outsourcing, the higher total factor productivity they can gain. Outsourcing to SMEs in a developing country can significantly increase its TFP by means of either maintaining core competencies or searching external resources in conducting some internal activities.

Although outsourcing has been widely applied by large firms, the research studying its impact on productivity at firm level is limited. Especially, this study can shed light on the impact for the case of SMEs in a developing economy.

How to manage outsourced employees in interorganizational teams with triangular relationships has not yet attracted enough attention. Based on relative deprivation theory, this study explores how relative deprivation affects outsourced employees’ innovative behavior and investigates the complex moderating effects of dual organizational support.

The authors tested their hypothesis by conducting a two-wave survey; responses to a questionnaire were collected from 283 outsourced employees and their managers among 52 client organizations.

Results found that relative deprivation negatively influences the outsourced employees’ innovative behavior by eliciting their perceptions of status conflict. Support from client (supplier) organization attenuates (aggravates) the positive impact of relative deprivation on innovative behavior throughout status conflict. The moderating effect of client organizational support was moderated by support from supplier organization.

The authors selected the outsourced employees in a Chinese context to conduct this study, and the results need to be generalized in future research.

Client organizational support can alleviate the negative effect of relative deprivation on outsourced employees, whereas supplier organization support aggravates the negative effect; managers should pay attention to the different effects of the two organizations’ support and provide reasonable support for outsourced employees.

This study identified the mechanism of relative deprivation’s effect on outsourced employees’ innovative behavior from the perspective of interpersonal interaction and compared the effect of support from dual organizations. This study expands the research on triangular relationships, relative deprivation, status conflict and other field.

The purpose of this paper is to investigate how the power dynamics between the client firm and the supplier firm in the information technology outsourcing (ITO) supplier chain influence the supplier firm's human resource management (HRM) practices, particularly talent retention.

A multi-case study approach was adopted comprising four supplier firms, three client firms and a total of 53 interviews. The transaction cost economics (TCE) is the theoretical lens that guides the interpretation of our findings.

The power dynamics between client and supplier firms in the ITO supply chain is one underpinned by TCE theory, characterised by an asymmetric client-dominated, transactional relationship, with the client firms controlling the “why”, the “what”, and the “how” dimensions of their collaboration. This “three-dimensional control” led to high talent turnover in supplier firms, which boomerangs to perpetuate the power dynamic, forming “vicious cycles of talent turnover” in the ITO supplier chain.

No previous study has analysed power dynamics as an external factor on ITO supplier firms' talent retention. The construct of the “three-dimensional-control” offers a framework to study power dynamics in the ITO supplier chain. The study’s framework of the “vicious cycles of talent turnover” is the first that explains the mechanisms through which the power dynamics in the ITO influences supplier's talent retention.

This paper aims to empirically investigate how knowledge coordination is carried out within and across expert teams in the outsourcing service desk context from the standpoint of the information and communication technologies (ICT) provider.

The authors draw on an embedded case study to unravel the mechanisms used by expert teams to achieve knowledge coordination. Data collection included semi-structured interviews and document analysis over eight months.

Four groups of coordination mechanisms were found according to their nature and role in helping MESA achieve its organizational goals. The authors also identified how this set of mechanisms responds to the task-resource dependency and how it evolves over time to provide reliable ICT services. Furthermore, the analysis of four knowledge coordination dimensions inside each group uncovers the complexity of coordination in the studied context, with the “who” dimension being predominant across the groups. The analysis further reveals that the content (what) and mode of coordination (how) of each group respond to elements in the knowledge coordination process relevant for the different stages of the ICT service delivery process.

The case study addresses how people in outsourced services coordinate their knowledge to manage the interdependencies among the involved organizations and thus, achieving their goals. This study extends previous research that had analyzed the consequences of knowledge coordination for providers and customers by delving into the mechanisms used in this process from the provider’s point of view.

The aim of this chapter is to present a comprehensive definition of Global Services that encompasses the wide variety of phenomena currently present in the international trade in services to bring to light the shift we are witnessing from Business Process Outsourcing (BPO), Information Technology Outsourcing (ITO), and Knowledge Process Outsourcing (KPO) models toward end-to-end (E2E) services and to highlight the factors which have had and will have an effect on these processes in the coming years.