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1 – 10 of 11This paper analyzes how information systems (IS) can serve as tools of neo-colonial control in offshore outsourcing of research and development work. It draws on critical work…
Abstract
Purpose
This paper analyzes how information systems (IS) can serve as tools of neo-colonial control in offshore outsourcing of research and development work. It draws on critical work examining business and knowledge process outsourcing.
Design/methodology/approach
The paper reports an empirical study of how laboratory information management systems (LIMS) shape offshore outsourcing practices involving Western client firms and Indian contract research organizations (CROs) in the pharmaceutical industry. The study adopted a multi-actor perspective, involving interviews with representatives of Western clients, Indian CROs, system validation auditors, and software vendors. The analysis was iterative and interpretative, guided by postcolonial sensitivity to themes of power and control.
Findings
The study found that LIMS act as tools of neo-colonial control at three levels. As Western clients specify particular brands of LIMS, they create a hierarchy among local CROs and impact the development of the local LIMS industry. At inter-organizational level, LIMS shape relationships by allowing remote, real-time and retrospective surveillance of CROs’ work. At individual level, the ability of LIMS to support micro-modularizing of research leads to routinization of scientific discovery, negatively impacting scientists’ work satisfaction.
Originality/value
By examining multiple actors’ perceptions of IS, this paper looks beyond the rhetoric of system efficiency characteristic of most international business research. As it explores dynamics of power and control surrounding IS, it also questions the proposition that outsourcing of high-end work will move emerging economies upstream in the value chain.
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Henrik Agndal, Lars-Johan Åge and Jens Eklinder-Frick
This paper aims to present a review of articles on business negotiation published between 1995 and 2015.
Abstract
Purpose
This paper aims to present a review of articles on business negotiation published between 1995 and 2015.
Design/methodology/approach
This literature review is based on 490 articles on business negotiation.
Findings
When analyzing the conceptual underpinnings of this field, two paradigms emerge as dominant. The most prominent paradigm is a cognitive, psychological approach, typically relying on experiments and statistical testing of findings. The second dominating paradigm is a behavioral one, largely concerned with mathematical modeling and game-theoretical models.
Practical implications
Besides offering a description of the characteristics adhered to the business negotiation field, this paper will also suggest recommendations for further research and specify areas in which the research field needs further conceptual and empirical development.
Originality/value
This literature review serves to be the first representation of the characteristics adhered to the budding research field of business negotiation.
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Rajeev Kumra, Henrik Agndal and Ulf Nilsson
This paper seeks to explore how Indian buying firms practise an open book (OB) policy in supplier relationships in three industries, i.e. the vehicle industry, the construction…
Abstract
Purpose
This paper seeks to explore how Indian buying firms practise an open book (OB) policy in supplier relationships in three industries, i.e. the vehicle industry, the construction industry and the information technology industry. It also aims to study determinants of open book practices.
Design/methodology/approach
Application of the OB policy is operationalised as the nature of open book practices, the extent and stage of data disclosed, the form of data disclosed, the direction of data disclosed, the attitude towards cost data disclosed, and the purpose and conditions of data disclosed. Determinants of the open book policy comprise characteristics of the exchange, the product, the buyer, the supplier and the supply market. Qualitative data were collected in the form of 22 interviews with representatives of three buying organisations and several of their suppliers in order to build three case studies.
Findings
The results suggest that the OB policy is used by buyers for diverse purposes ranging from strategic to operational, for example value engineering at the product development stage, to ensure supplier margins, for self improvements and cost reductions, and country entry decisions. Similarly, the data shared ranged from narrow to wide in scope and scale. Suppliers' attitudes ranged from fairly neutral to very negative towards open books. Power asymmetries, the number of alternative suppliers, product performance characteristics and value, incentives offered, and buyer efforts were found to influence OB practices.
Practical implications
Experiences gained from employing an OB policy in vehicle manufacturing suggests that firms in other industries can better leverage the use of open books for joint problem solving, equitable profit sharing and supplier selection.
Originality/value
The paper highlights that an OB policy can have broader applicability than recognised by many past studies and indicates that it can serve purposes of strategic decision‐making. It can also be an integrated part of a buyer's risk reduction strategy. Further, the study provides specific recommendations for Indian companies with regard to the application of an open book policy.
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Henrik Agndal and Fredrik Nordin
The research on effects of outsourcing tends to focus on financial effects and effects at a country level. These are not the only consequences of outsourcing, though. When firms…
Abstract
Purpose
The research on effects of outsourcing tends to focus on financial effects and effects at a country level. These are not the only consequences of outsourcing, though. When firms outsource functions previously performed in‐house, they risk losing important competencies, knowledge, skills, relationships, and possibilities for creative renewal. Such non‐financial consequences are poorly addressed in the literature, even though they may explain financial effects of outsourcing. Therefore, the purpose of this paper is to develop a model that enables the study of non‐financial consequences of outsourcing.
Design/methodology/approach
Based on a review of the literature on interdependencies between organizational functions, a main proposition is developed: given that savings gained from outsourcing are not reinvested in the organization, outsourcing of any function will negatively impact the capabilities of that and other functions in the organization. This proposition is broken down into sub‐propositions, which are tested through a focus group study. Respondents include purchasing professionals with experience from best practice outsourcing.
Findings
The initial proposition is developed through identification of variables mediating the proposed negative consequences of outsourcing. Mediating variables are broken down into four categories: variables relating to the outsourcer, the outsourcee, the relationship between the parties, and the context.
Research limitations/implications
By developing a model for the study of non‐financial consequences of outsourcing, this paper takes a step towards opening up an important avenue for future research.
Originality/value
This paper contributes to the outsourcing field by not only considering non‐financial effects, but also by drawing on examples of best practice outsourcing to identify ways in which potentially negative consequences of outsourcing may be managed.
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Henrik Agndal and Sylvie Chetty
The purpose of this paper is to study how existing relationships influence changes in SMEs' internationalisation strategies in terms of markets and modes.
Abstract
Purpose
The purpose of this paper is to study how existing relationships influence changes in SMEs' internationalisation strategies in terms of markets and modes.
Design/methodology/approach
This paper provides a detailed examination of the dynamics of 116 strategy changes, which are influenced by a firm's relationships in 20 New Zealand and Swedish internationalising SMEs. It uses the qualitative research method to develop theory. A conceptual model with eight categories relating to relationships and strategic change during the internationalisation process of the firm is developed.
Findings
Using the conceptual model as a framework to analyse the data, it was found that existing relationships play an important role in 59 market strategy changes and 57 mode strategy changes. The main findings are that business relationships are more influential in internationalisation strategy changes than social relationships, especially with regard to mode changes in foreign markets. Most mode changes are reactive. Market strategy changes, however, are evenly balanced between proactive and reactive changes. Overall, more changes can be attributed to direct relationship influences than indirect third party influences. The findings from this study are used to develop seven propositions.
Originality/value
The paper focuses on strategic change and highlights the importance of relationships, in particular their influence in market and mode changes.
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The literature on activity‐based costing (ABC) that deals with the allocation of indirect purchasing costs primarily draws on a transactional approach to purchasing. This presents…
Abstract
Purpose
The literature on activity‐based costing (ABC) that deals with the allocation of indirect purchasing costs primarily draws on a transactional approach to purchasing. This presents a problem, since a large share of purchasing takes place within relationships. The purpose of this paper is to point out complexities in applying ABC to indirect purchasing costs, when purchasing takes place within long‐term relationships. The interaction model is used as a framework.
Design/methodology/approach
A case study is conducted on a first‐tier supplier in the Swedish automotive industry to illustrate real‐life purchasing practices and to point out subsequent difficulties in applying ABC principles. This firm is selected because efforts have simultaneously been undertaken to employ supplier relationship management (SRM) and to implement costing techniques. About 23 interviews were conducted and approximately 31 hours of interview data were collected.
Findings
The case shows that many functions tend to be involved in exchange within long‐term relationships. This generates additional purchasing‐related costs not previously recognized in the costing literature. It also leads to difficulties in allocating these costs.
Originality/value
Complexities when implementing ABC are presented, concerning: allocation of costs relating to SRM; allocation of costs pertaining both to transactions and to relationships; less apparent cost drivers due to involvement of many functions in exchanges; and cost allocation over time.
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Olli Kuivalainen, Sanna Sundqvist, Sami Saarenketo and Rod McNaughton
The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized…
Abstract
Purpose
The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized enterprises (SMEs) should be conducted.
Design/methodology/approach
A comprehensive overview of concepts and a conceptual framework to study internationalization patterns of SMEs is offered.
Findings
The complexities of existing definitions and methodologies for researching internationalization patterns are highlighted, and a synthesis of the issues is provided. An integrative model of internationalization pathways, and their antecedents and outcomes is presented.
Research limitations/implications
It is recommended that future research focuses especially on the time dimension of internationalization patterns. Future research can contribute to the literature by adopting a longitudinal approach with larger samples and more detailed cases to capture the dynamics of internationalization.
Practical implications
Practitioners might map their positions, and look for challenges and opportunities with regard to their chosen internationalization pattern. They can also benchmark other firms’ pathways and fine‐tune their own approach to internationalization.
Originality/value
The paper integrates a large body of research in an important research area in international marketing. It also provides guidance on how to conduct future research in the area, and introduces the content of this special issue of the International Marketing Review.
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