Marjut Hirvonen, Katri Kauppi and Juuso Liesiö
Although it is commonly agreed that prescriptive analytics can benefit organizations by enabling better decision-making, the deployment of prescriptive analytics tools can be…
Abstract
Purpose
Although it is commonly agreed that prescriptive analytics can benefit organizations by enabling better decision-making, the deployment of prescriptive analytics tools can be challenging. Previous studies have primarily focused on methodological issues rather than the organizational deployment of analytics. However, successful deployment is key to achieving the intended benefits of prescriptive analytics tools. Therefore, this study aims to identify the enablers of successful deployment of prescriptive analytics.
Design/methodology/approach
The authors examine the enablers for the successful deployment of prescriptive analytics through five organizational case studies. To provide a comprehensive view of the deployment process, each case includes interviews with users, managers and top management.
Findings
The findings suggest the key enablers for successful analytics deployment are strong leadership and management support, sufficient resources, user participation in development and a common dialogue between users, managers and top management. However, contrary to the existing literature, the authors found little evidence of external pressures to develop and deploy analytics. Importantly, the success of deployment in each case was related to the similarity with which different actors within the organization viewed the deployment process. Furthermore, end users tended to highlight user participation, skills and training, whereas managers and top management placed greater emphasis on the importance of organizational changes.
Originality/value
The results will help practitioners ensure that key enablers are in place to increase the likelihood of the successful deployment of prescriptive analytics.
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Katri Kauppi and Davide Luzzini
Increasing amount of empirical research in operations and supply chain management is using institutional theory as its theoretical lens. Yet, a common scale to measure the three…
Abstract
Purpose
Increasing amount of empirical research in operations and supply chain management is using institutional theory as its theoretical lens. Yet, a common scale to measure the three institutional pressures – coercive, mimetic and normative – is lacking. Many studies use proxies or a single, grouped, construct of external pressures which present methodological challenges. This study aims to present the development of multi-item scales to measure institutional pressures (in a purchasing context).
Design/methodology/approach
First, items were generated based on the theoretical construct definitions. These items were then tested through academic sorting and an international survey. The first empirical testing failed to produce reliable and valid scales, and further refinement and analysis revealed that coercive pressure splits into two separate constructs. A second q-sorting was then conducted with purchasing practitioners, followed by another survey in Italy to verify the new measurement scale for four institutional pressures.
Findings
The multimethod and multistage measurement development reveals that empirically the three institutional pressures actually turn into four pressures. The theoretical construct of coercive pressure splits into two distinct constructs: coercive market pressure and coercive regulatory pressure.
Originality/value
The results of the paper, namely, the measurement scales, are an important theoretical and methodological contribution to future empirical research. They present a much-needed measurement for these theoretical constructs increasingly used in management research.
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Juri Matinheikki, Katie Kenny, Katri Kauppi, Erik van Raaij and Alistair Brandon-Jones
Despite the unparalleled importance of value within healthcare, value-based models remain underutilised in the procurement of medical devices. Research is needed to understand…
Abstract
Purpose
Despite the unparalleled importance of value within healthcare, value-based models remain underutilised in the procurement of medical devices. Research is needed to understand what factors incentivise standard, low-priced device purchasing as opposed to value-adding devices with potentially higher overall health outcomes. Framed in agency theory, we examine the conditions under which different actors involved in purchasing decisions select premium-priced, value-adding medical devices over low-priced, standard medical devices.
Design/methodology/approach
We conducted 2 × 2 × 2 between-subjects scenario-based vignette experiments on three UK-based online samples of managers (n = 599), medical professionals (n = 279) and purchasing managers (n = 449) with subjects randomly assigned to three treatments: (1) cost-saving incentives, (2) risk-sharing contracts and (3) stronger (versus weaker) clinical evidence.
Findings
Our analysis demonstrates the harmful effects of intra-organisational cost-saving incentives on value-based purchasing (VBP) adoption; the positive impact of inter-organisational risk-sharing contracts, especially when medical professionals are involved in decision-making; and the challenge of leveraging clinical evidence to support value claims.
Research limitations/implications
Our results demonstrate the need to align incentives in a context with multiple intra- and inter-organisational agency relationships at play, as well as the difficulty of reducing information asymmetry when information is not easily interpretable to all decision-makers. Overall, the intra-organisational agency factors strongly influenced the choices for the inter-organisational agency relationship.
Originality/value
We contribute to VBP in healthcare by examining the role of intra- and inter-organisational agency relationships and incentives concerning VBP (non-) adoption. We also examine how the impact of such mechanisms differs between medical and purchasing (management) professionals.
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Juri Matinheikki, Katri Kauppi, Alistair Brandon–Jones and Erik M. van Raaij
Contemporary supply chain relationships inherently rely on delegation of work between organizations and, thus, are subject to agency problems for which a wide range of governance…
Abstract
Purpose
Contemporary supply chain relationships inherently rely on delegation of work between organizations and, thus, are subject to agency problems for which a wide range of governance mechanisms exist. This review of agency theory (AT), across four distinct fields, explains the connection between governance mechanisms and supply chain relationship types.
Design/methodology/approach
The study uses a systematic literature review (SLR) of articles using AT in a supply chain context from the operations and supply chain management, general management, marketing, and economics fields.
Findings
The authors categorize the governance mechanisms identified to create a typology of agency relationships in supply chains.
Research limitations/implications
The developed typology provides parsimonious theory on different forms of supply chain agency relationships and takes a step towards a “supply chain-oriented agency theory” explaining and predicting relationship types and governance in supply chains. Furthermore, a future research agenda calls for more accurate measuring of agency costs, to examine residual gains alongside residual losses, to take a dual-sided perspective of agency relations and to adopt AT to examine more complex supply networks.
Practical implications
The review provides a menu of governance mechanisms and describes situations under which these mechanisms could be deployed to guide managers when developing their supply chain relationships.
Originality/value
The first review to combine and elaborate views from four major disciplines using AT as a lens to supply chain relationships. Expanding the traditional set of governance mechanisms provides academics and practitioners with a bigger “menu” of options to consider.
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Suvituulia Taponen and Katri Kauppi
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…
Abstract
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.