Abstract
This article examines an important yet understudied issue-the governance mode for business process offshoring (BPO). By applying transaction cost economics and organizational control perspective in the global BPO context, we suggest that BPO's governance mode (foreign captive, joint venture, and independent vendor) is determined by task features, such as knowledge specialization, information security, and process codifiability, and by needed process integration, horizontally between departments and units within the provider and vertically between the provider and its global client and its local subcontractor. Findings from our analysis of 308 global BPO units in India and China confirm our hypotheses.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 407-419 |
| Number of pages | 13 |
| Journal | Journal of World Business |
| Volume | 48 |
| Issue number | 3 |
| DOIs | |
| State | Published - Jul 2013 |
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Keywords
- Business process offshoring (BPO)
- Emerging markets
- Governance mode
- Organizational control
- Transaction cost economics
ASJC Scopus subject areas
- Business and International Management
- Marketing
- Finance
Cite this
Governing business process offshoring : Properties, processes, and preferred modes. / Luo, Yadong; Wang, Stephanie Lu; Jayaraman, Vaidyanathan; Zheng, Qinqin.
In: Journal of World Business, Vol. 48, No. 3, 07.2013, p. 407-419.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Governing business process offshoring
T2 - Properties, processes, and preferred modes
AU - Luo, Yadong
AU - Wang, Stephanie Lu
AU - Jayaraman, Vaidyanathan
AU - Zheng, Qinqin
PY - 2013/7
Y1 - 2013/7
N2 - This article examines an important yet understudied issue-the governance mode for business process offshoring (BPO). By applying transaction cost economics and organizational control perspective in the global BPO context, we suggest that BPO's governance mode (foreign captive, joint venture, and independent vendor) is determined by task features, such as knowledge specialization, information security, and process codifiability, and by needed process integration, horizontally between departments and units within the provider and vertically between the provider and its global client and its local subcontractor. Findings from our analysis of 308 global BPO units in India and China confirm our hypotheses.
AB - This article examines an important yet understudied issue-the governance mode for business process offshoring (BPO). By applying transaction cost economics and organizational control perspective in the global BPO context, we suggest that BPO's governance mode (foreign captive, joint venture, and independent vendor) is determined by task features, such as knowledge specialization, information security, and process codifiability, and by needed process integration, horizontally between departments and units within the provider and vertically between the provider and its global client and its local subcontractor. Findings from our analysis of 308 global BPO units in India and China confirm our hypotheses.
KW - Business process offshoring (BPO)
KW - Emerging markets
KW - Governance mode
KW - Organizational control
KW - Transaction cost economics
UR - http://www.scopus.com/inward/record.url?scp=84879838033&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84879838033&partnerID=8YFLogxK
U2 - 10.1016/j.jwb.2012.07.024
DO - 10.1016/j.jwb.2012.07.024
M3 - Article
AN - SCOPUS:84879838033
VL - 48
SP - 407
EP - 419
JO - Journal of World Business
JF - Journal of World Business
SN - 1090-9516
IS - 3
ER -