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The purpose of this paper is to develop a framework that incorporates both firm- and process-level factors for understanding location distance choice in the business process outsourcing (BPO) decision.

The research involved undertaking in-depth case study analysis of a number of BPO decisions in six German companies, and employing transaction cost economics (TCE) and the resource-based view (RBV) as a theoretical basis.

The findings have shown that existing literature in the operations management (OM) literature does not provide a complete understanding of the complexities of location distance choice in the BPO decision. This decision requires an understanding of a range of factors at both the firm- and process-level. The findings here enhance the understanding of how these factors interact to influence the potential distance options.

The findings have shown how organisations can influence the factors that affect the location distance choice including modularising business processes, developing outsourcing capabilities, and supplementing internal skills in areas such as cultural management and performance monitoring.

This is one of the first studies in the OM field to analyse how organisations make the decision in relation to local, nearshore, and offshore location distance options. The paper has highlighted the importance of OM concepts such as performance management and continuous improvement to this phenomenon, and the paper has offered a number of important areas for further research.

Over the last number of years, outsourcing has become an important issue for many organisations. The potential for outsourcing has moved from peripheral activities such as cleaning and catering to critical activities such as design and manufacturing. However, there is evidence to suggest that organisations are not achieving the desired benefits from outsourcing. Outsourcing decisions are rarely taken within a thoroughly strategic perspective with many firms adopting a short‐term perspective and being motivated primarily by the search for short‐term cost reductions. The aim is to illustrate that outsourcing should be carried out from a strategic perspective and integrated into the overall strategy of the organisation by proposing an outsourcing framework. The framework attempts to overcome some of the problems associated with outsourcing by integrating a number of key strands related to outsourcing including a value chain perspective, core competency thinking and supply base influences into the decision‐making process.

Increasingly, studies are reporting supply chain analytical capabilities as a key enabler of supply chain agility (SCAG) and supply chain performance (SCP). This study investigates the impact of environmental dynamism and competitive pressures in a supply chain analytics setting, and how intangible supply chain analytical capabilities (ISCAC) moderate the relationship between big data characteristics (BDC's) and SCAG in support of enhanced SCP.

The study draws on the literature on big data, supply chain analytical capabilities, and dynamic capability theory to empirically develop and test a supply chain analytical capabilities model in support of SCAG and SCP. ISCAC was the moderated construct and was tested using two sub-dimensions, supply chain organisational learning and supply chain data driven culture.

The results show that whilst environmental dynamism has a significant relationship on the three key BDC's, only the volume and velocity dimensions are significant in relation to competitive pressures. Furthermore, only the velocity element of BDC's has a significant positive impact on SCAG. In terms of moderation, the supply chain organisational learning dimension of ISCAC was shown to only moderate the velocity aspect of BDC's on SCAG, whereas for the supply chain data driven culture dimension of ISCAC, only the variety aspect was shown to moderate of BDC on SCAG. SCAG had a significant impact on SCP.

This study adds to the existing knowledge in the supply chain analytical capabilities domain by presenting a nuanced moderation model that includes external factors (environmental dynamism and competitive pressures), their relationships with BDC's and how ISCAC (namely, supply chain organisational learning and supply chain data driven culture) moderates and strengthens aspects of BDC's in support of SCAG and enhanced SCP.

Since the 1970s, international manufacturing companies, in pursuit of world‐class goals, have been adopting and adapting management practices developed originally in Japan. Notable characteristics of such companies now include: a customer‐focused culture; a concentration on core competencies with high levels of outsourcing; an emphasis on team working and manufacturing cells; low levels of stock at all stages of assembly; frequent small deliveries by suppliers directly to the production areas; a supply base of relatively few suppliers; partnership agreements with key first‐tier suppliers. Such companies are aiming to produce goods of world‐class quality and to do so, given the large amounts of bought‐in components and sub‐systems, pay a great deal of attention to the supply network. As a result, the purchasing function in these companies, as the interface with suppliers, plays a crucial role in manufacturing strategy. It is thus important to determine what multinational manufacturing companies want from their suppliers, ie what constitutes the “total package” that they want to have supplied? To this end, a total quality‐based 15‐criteria model of this package was developed and pre‐tested with senior purchasing managers from multinational corporations (MNCs). Based on this model a survey of senior purchasing managers of 170 MNCs throughout Ireland was undertaken and this paper reports on the results from the 62 usable returns.

The purpose of this paper is to provide an understanding of the influence of political goals and behaviour on the outsourcing decision process and outcomes.

The research used an exploratory longitudinal case-based approach. Eight outsourcing projects in three telecommunications companies were analysed from the initial decision to the outcome of the case.

The authors show how political goals and behaviours influence the outsourcing decision process and inductively develop four political goals: personal reputation, attainment, elimination and control. The authors also identify three dynamic outsourcing paths: the personal reputation path, which leads to successful outcomes; the short-term attain and eliminate path leading to unsuccessful outcomes; and the destabilised path, which leads to mixed outcomes. All of these can be tested in other empirical settings.

The implications for outsourcing literature are that political intentions influence the decision process and outcomes. For theorists, the authors provide an understanding of how political and rational goals and behaviour interact to impact outsourcing outcomes: with political and rational goals and behaviour complementary in some instances. The limitations are that with a small sample the findings are generalisable to theoretical propositions rather than to a population.

The implications for managers are the ability to identify and manage political goals that influence outsourcing decision process and outcomes.

For the first time, the authors uncover the political goals that impact the outsourcing decision process and outcomes. The authors add to the outsourcing literature, transaction cost theory and resource-based theory by defining and understanding the political goals that complement these theories.

The purpose of this paper is to enhance the understanding of the application of process improvement techniques (PITs) in the business process outsourcing (BPO) process. The paper focuses on how PITs impact the BPO process, and identifies a number of key enablers of applying PITs in the BPO process.

The paper employs a case study approach. In-depth case study analysis of a number of organisations that have employed a number of PITs in BPO is carried out.

The findings support current literature that highlights the importance of formal contracting, relational contracting, and vendor capabilities for applying PITs in BPO. However, the findings also highlight the importance of additional factors, not widely considered in the current literature. The client must possess internal capabilities in PITs and change management to ensure process improvement occurs. Moreover, the findings here have shown that the client must invest in and develop the resources that enhance its capability to employ PITs in BPO.

The findings highlight the importance and relevance of process improvement to BPO, and identify a number of important issues for further research in order to bridge the gap between these two complementary areas.

The purpose of this paper is to assess the applicability of a number of performance management techniques in the outsourcing process, in a business services context.

Using a structured outsourcing framework, performance management techniques are applied in a financial services organisation over a three‐year period. A case study approach is employed to undertake the research, which involved the research team engaging directly with the organisation throughout the outsourcing process.

Applying performance management techniques in the outsourcing process is challenging in a number of areas including comparison difficulties, incomplete information and inadequate performance management systems. However, benchmarking and cost analysis are useful mechanisms for improving performance, and reducing costs via internal process redesign or outsourcing. Performance management techniques can be employed to remove inefficiencies from processes both prior to outsourcing and during the outsourcing relationship.

There are a number of limitations of the research approach including gaining full participation from the company, having access to all relevant company information and time constraints.

The research findings highlight the implications of applying performance management techniques in a practical outsourcing setting. As well as identifying the challenges, the research highlights the value of integrating critical success factors, cost analysis, benchmarking and other performance management techniques into the outsourcing process.

There are few studies in the literature of applying performance management techniques in the outsourcing process at an operation's level. The findings have identified the challenges and benefits of performance management techniques in the outsourcing process. The findings have highlighted the importance of operations management concepts such as performance management, operations strategy, business improvement and process re‐design to services outsourcing, and the need for further research in this area by operations management scholars.

To close the inaugural volume of Strategic Outsourcing, an International Journal (SOIJ), this paper's objective is to suggest a research agenda for outsourcing related studies, aiming to identify a limited number of key and most urgent research areas in need of scientifically valid research.

The authors draw on their personal experience and knowledge as well as the content of the first volume of SOIJ, to identify key seminal studies in the field, observe gaps in current knowledge, and provide suggestions for future research.

The major outcome of the paper is our suggestion for the top‐10 most urgent outsourcing research areas. Also interesting are the other three top‐10s we propose: the top‐10 theories underpinning current outsourcing research; the top‐10 research areas investigated by past research on outsourcing; and the top‐10 research questions that have emerged this year.

Considering the methodology we chose for this article, we are aware, and indeed so should you be, that this research is biased and subjective by our own admission. Hence its categorisation as a viewpoint. Nonetheless, considering the large amount of information we have used and the very narrow focus we have kept in identifying only the most urgent gaps, we believe the article has relevant implications in terms of clarifying a short‐term roadmap for research in the field.

From a practical perspective, as with all research agendas, the longer‐term implications are much more important and visible than the shorter‐term ones. The extremely fast pace at which outsourcing practice develops, coupled with the slower pace at which theoretical formulation and education move, are leaving outsourcing practitioners short of the proper “tools of trade”. A clear and focused research agenda can help generate knowledge supporting a drastic reduction in the confusion surrounding this practice and hence increase practitioners’ ability to develop the proper skills, learn from and apply validated theories and, in turn, more successfully manage their outsourced operations or contracts.

That outsourcing related research is going to increase over the next few years, is undisputed. The key question is how we can maximise current and future efforts to shorten the development time. Being part of the editorial team of SOIJ puts us in the privileged position to have visibility over most current research being undertaken in the field of outsourcing. Complementing this with our own experience as researchers and practitioners in the field, we can provide relevant suggestions to those researchers who share an interest in developing this field into a fully‐fledged scientific discipline.

The purpose of this article is to examine how electronic commerce can fundamentally change the inter‐organisational processes at the interface between the buyer and supplier.

First, an overview is provided of the evolution of B2B commerce and the typical business models that have been developed. Second, a number of factors are identified which impact on the buyer‐supplier interface in B2B commerce. Finally, the conclusions will examine the implications for managers involved in B2B commerce who have to interact across organisational boundaries.

Electronic commerce not only enables the redesign of internal organisational processes but is extended into both the buyer and supplier organisations. Innovations in electronic commerce have a key role to play in managing inter‐organisational networks of supply chain members. It is also found that in many instances electronic commerce is radically changing the way in which organisations have traditionally traded. As well as impacting the external trading arrangements between buyers and suppliers, electronic commerce is also affecting the traditional roles of the functions involved in managing the buyer/supplier relationship.

It is essential for top management to understand that the internet is more than a tool or technique, but rather something that is woven into the fabric of the organisation and the relationship with its environment. Adopting such an approach represents a drastic change from traditional management thinking and, more importantly, for management's behaviour.

This paper provides an improved understanding of how the internet represents a powerful technology for commerce and communication at the buyer‐supplier interface. This will be a useful insight for academics and practitioners alike.