An Empirical Analysis of the Impact of Information Capabilities Design on Business Process Outsourcing Performance

Mani, D and Barua, A and Whinston, A (2010) An Empirical Analysis of the Impact of Information Capabilities Design on Business Process Outsourcing Performance. MIS Quarterly, 34 (1). pp. 39-62.

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Abstract

Organizations today outsource diverse business processes to achieve a wide variety of business objectives ranging from reduction of costs to innovation and business transformation. We build on the information processing view of the firm to theorize that performance heterogeneity across business process outsourcing (BPO) exchanges is a function of the design of information capabilities (IC) that fit the unique information requirements (IR) of the exchange. Further, we compare performance effects of the fit between IR and IC across dominant categories of BPO relationships to provide insights into the relative benefits of enacting such fit between the constructs. Empirical tests of our hypotheses using survey data on 127 active BPO relationships find a significant increase (decrease) in satisfaction as a result of the fit (misfit) between IR and IC of the relationship. The results have implications for how BPO relationships must be designed and managed to realize significant performance gains. The study also extends the IPV to identify IC that provide the incentives and means to process information in an interfirm relationship.

Affiliation: Indian School of Business
ISB Creators:
ISB CreatorsORCiD
Mani, Dhttp://orcid.org/0000-0002-2458-6961
Item Type: Article
Uncontrolled Keywords: Outsourcing, Information processing, Business models, Business entities, Government relations, Information technology, Information storage and retrieval systems, Collaboration. Business innovation, Consumer information
Subjects: Business Innovation
Information Systems
Depositing User: Ilayaraja M
Date Deposited: 19 Jun 2019 11:41
Last Modified: 19 Jun 2019 11:41
URI: http://eprints.exchange.isb.edu/id/eprint/1115
Publisher URL: https://dx.doi.org/10.2307/20721414
Publisher OA policy: http://sherpa.ac.uk/romeo/issn/0276-7783/
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