Encon Y.Y. Hui and Albert H.C. Tsang
The purpose of this paper is to present a study on the relationship between the client and the contractor in a multi‐contractor business network.
Abstract
Purpose
The purpose of this paper is to present a study on the relationship between the client and the contractor in a multi‐contractor business network.
Design/methodology/approach
A model built on transaction cost economics and relational exchange theory is proposed to determine the preferred governance mechanism as a function of fit with the technical environment of facilities management. Hypotheses in the model are tested by means of data collected from a survey of facilities managers.
Findings
It is found that decision making uncertainty has a negative effect on relational norm. On the other hand, a positive relationship exists between asset specificity and relational norm, and this relationship is moderated by risk of malfunction.
Research limitations/implications
As trust and relational norm may be affected by the local culture, validation of the study may be necessary in other cultural settings.
Practical implications
By means of the empirical model, the gap between the current relational norm and the desired relational norm can be determined. With this knowledge, the facilities manager of the client can then plan change initiatives to narrow the gap.
Originality/value
The developed regression equation facilitates objective determination of the preferred relational norm between the client and the contractor in the context of maintenance out‐tasking.
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Identifies major issues related to building management in the context of large and dense residential estates. Aims to understand the relationship between the owners and the…
Abstract
Purpose
Identifies major issues related to building management in the context of large and dense residential estates. Aims to understand the relationship between the owners and the building management company and determine the keys to success for building management in large and dense residential estates.
Design/methodology/approach
Field interviews are conducted with the management committees of three residential estates. Semi‐structured questions are asked. A model of service quality is applied in the context of building management.
Findings
A framework of the context of building management is constructed. The relationship among the management committee and the building management company is a partnership. Guidelines for narrowing possible service gaps in the process of building management are proposed. Key success factors of building management are identified.
Research limitations/implications
The sample size is small. This study reflects the field practice of outsourced building management of a few large and dense residential estates in Hong Kong. Further validation is necessary elsewhere.
Practical implications
This is a useful source of information for building owners and service providers to effectively implement building management.
Originality/value
The context of building management is graphically represented. The gap model of service quality is applied in the study of the process of service delivery of building management.
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Keywords
Encon Y.Y. Hui and Albert H.C. Tsang
In this study, four sourcing strategies are identified in the delivery of maintenance service in facilities management, namely in‐sourcing, out‐tasking, outsourcing for cost…
Abstract
In this study, four sourcing strategies are identified in the delivery of maintenance service in facilities management, namely in‐sourcing, out‐tasking, outsourcing for cost saving, and outsourcing for capability. Since each of these strategies has merits under specific circumstances, a framework for the selection of appropriate sourcing strategy in particular situations is presented. This framework, which takes into consideration both the scope and purpose of the sourcing decision, was developed on the basis of results of earlier research and has been validated by the findings obtained from interviews with practitioners in exemplary organizations. This paper also provides guidelines for implementing the selected sourcing option, along with discussion of the related strategic and operational issues.
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This paper contributes to extant knowledge by highlighting the complementarity‐based nature of coopetition strategy and its impact on collective strategies for value generation…
Abstract
Purpose
This paper contributes to extant knowledge by highlighting the complementarity‐based nature of coopetition strategy and its impact on collective strategies for value generation among actors.
Design/methodology/approach
Data collection draws on three cases encompassing three empirical contexts. A theoretical lens that enables a focus on contemporary inter‐organisational markets as organised behaviour systems manifesting network structures is adopted. Business strategy is operationalised as an exchange strategy with an emphasis on the exchange effectiveness achieved when some value is produced in cooperation with significant others.
Findings
The results show that managerial leadership and development of trust are the key success factors. Furthermore, this hybrid level of inter‐organisational relationship encompassing both competition and cooperation – coopetition – fosters collective intelligence through information and knowledge sharing.
Research limitations/implications
This paper concludes that, due to contemporary inter‐organisational exchange often being governed by the “visible hand” of the process of networking, today's environment is different from the environment firms used to encounter in the past. From a managerial perspective, the findings demonstrate the multifaceted nature of coopetition. Additional work on the impact of the concept of coopetition strategy on business practice is needed to add to this valuable endeavour.
Originality/value
The existing studies are primarily concerned with arm's‐length exchange (competition), a dynamic situation in which several actors are vying for scarce resources and/or producing and marketing similar products or services. Comparatively little research has focused on inter‐organisational dynamics, which entails both cooperation and competition. This paper demonstrates that participating in inter‐firm networks has become increasingly popular to enhance corporate entrepreneurship.