Near or Far: A Multi theory lens to examine the business process outsourcing decision

Martina Gerbl, Ronan McIvor, Sharon Loane

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper proposes a framework for understanding location distance and governance model choice in the business process outsourcing (BPO) decision. Much of the current international business (IB) literature employs location-specific factors alone to explain the BPO decision, and this literature is dominated by studies of the offshore location option, with limited attention given to the local and nearshore location distance options as alternatives to offshoring. The framework proposed here was developed from integrating firm-level and process-level factors with location attractiveness factors, and undertaking in-depth case study analysis of a number of German companies. The findings highlight the value of integrating firm-level and process-level factors with location attractiveness factors to understand location distance and governance model choice in the BPO decision, and support those who have argued that existing frameworks in this area cannot fully explain the complexities of the BPO decision. Moreover, the findings provide important insights into how these factors interact to influence location distance and governance model choice. The proposed BPO framework also provides a useful basis for practical prescription.
LanguageEnglish
Title of host publicationUnknown Host Publication
EditorsAnnie Wei, Frank McDonald
Number of pages100
Publication statusPublished - 10 Apr 2014
Event41st Academy of International Business (UK & Ireland) Conference - York
Duration: 10 Apr 2014 → …

Conference

Conference41st Academy of International Business (UK & Ireland) Conference
Period10/04/14 → …

Fingerprint

Business process outsourcing
Factors
Governance
Model choice
Attractiveness
Offshoring
International business
Prescription
Limited attention
Specific factors

Keywords

  • business process outsourcing
  • nearshore
  • offshore
  • resource-based view
  • transaction cost economics
  • eclectic theory

Cite this

Gerbl, M., McIvor, R., & Loane, S. (2014). Near or Far: A Multi theory lens to examine the business process outsourcing decision. In A. Wei, & F. McDonald (Eds.), Unknown Host Publication
Gerbl, Martina ; McIvor, Ronan ; Loane, Sharon. / Near or Far: A Multi theory lens to examine the business process outsourcing decision. Unknown Host Publication. editor / Annie Wei ; Frank McDonald. 2014.
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Gerbl, M, McIvor, R & Loane, S 2014, Near or Far: A Multi theory lens to examine the business process outsourcing decision. in A Wei & F McDonald (eds), Unknown Host Publication. 41st Academy of International Business (UK & Ireland) Conference, 10/04/14.

Near or Far: A Multi theory lens to examine the business process outsourcing decision. / Gerbl, Martina; McIvor, Ronan; Loane, Sharon.

Unknown Host Publication. ed. / Annie Wei; Frank McDonald. 2014.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

TY - GEN

T1 - Near or Far: A Multi theory lens to examine the business process outsourcing decision

AU - Gerbl, Martina

AU - McIvor, Ronan

AU - Loane, Sharon

PY - 2014/4/10

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N2 - This paper proposes a framework for understanding location distance and governance model choice in the business process outsourcing (BPO) decision. Much of the current international business (IB) literature employs location-specific factors alone to explain the BPO decision, and this literature is dominated by studies of the offshore location option, with limited attention given to the local and nearshore location distance options as alternatives to offshoring. The framework proposed here was developed from integrating firm-level and process-level factors with location attractiveness factors, and undertaking in-depth case study analysis of a number of German companies. The findings highlight the value of integrating firm-level and process-level factors with location attractiveness factors to understand location distance and governance model choice in the BPO decision, and support those who have argued that existing frameworks in this area cannot fully explain the complexities of the BPO decision. Moreover, the findings provide important insights into how these factors interact to influence location distance and governance model choice. The proposed BPO framework also provides a useful basis for practical prescription.

AB - This paper proposes a framework for understanding location distance and governance model choice in the business process outsourcing (BPO) decision. Much of the current international business (IB) literature employs location-specific factors alone to explain the BPO decision, and this literature is dominated by studies of the offshore location option, with limited attention given to the local and nearshore location distance options as alternatives to offshoring. The framework proposed here was developed from integrating firm-level and process-level factors with location attractiveness factors, and undertaking in-depth case study analysis of a number of German companies. The findings highlight the value of integrating firm-level and process-level factors with location attractiveness factors to understand location distance and governance model choice in the BPO decision, and support those who have argued that existing frameworks in this area cannot fully explain the complexities of the BPO decision. Moreover, the findings provide important insights into how these factors interact to influence location distance and governance model choice. The proposed BPO framework also provides a useful basis for practical prescription.

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KW - nearshore

KW - offshore

KW - resource-based view

KW - transaction cost economics

KW - eclectic theory

M3 - Conference contribution

BT - Unknown Host Publication

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Gerbl M, McIvor R, Loane S. Near or Far: A Multi theory lens to examine the business process outsourcing decision. In Wei A, McDonald F, editors, Unknown Host Publication. 2014