Journal
JOURNAL OF MANAGEMENT INFORMATION SYSTEMS
Volume 27, Issue 3, Pages 11-42Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.2753/MIS0742-1222270302
Keywords
business process outsourcing; offshoring; organizational capabilities; organizational learning; outsourcing
Funding
- STIET (Socio-Technical Infrastructure for Electronic Transactions)
- National Science Foundation [0114368]
- Stephen M. Ross School of Business at the University of Michigan
- Robert H. Smith School of Business at the University of Maryland
- University of Michigan Ross School of Business
- Division Of Graduate Education
- Direct For Education and Human Resources [0114368] Funding Source: National Science Foundation
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This paper identifies and analyzes firm-level characteristics that facilitate onshore and offshore business process outsourcing (BPO). We use organizational learning and capabilities to develop a conceptual model. We test the conceptual model with archival data on a broad cross section of U.S. firms. Our empirical findings indicate that firms with experience in onshore information technology (IT) outsourcing and capabilities related to IT coordination applications and process codification are more likely to engage in BPO, and firms with experience in internationalization are more likely to engage in offshore BPO. We also find that IT coordination applications have a greater impact on onshore BPO than on offshore BPO, and the effect of process codification is partly mediated through IT outsourcing.
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