A grounded theory approach to developing a partnership quality model in service outsourcing

Subject Areas : Business Strategy

reza shojaey ¹ , Khani Naser ² , arash shahin ³ , nader Ale Ebrahim ⁴

1 - Department of Management, Najafabad Branch, Islamic Azad University, Najafabad, Iran
2 - Department of Management, Najafabad Branch, Islamic Azad University, Najafabad, Iran
3 - Professor of Quality Engineering and Management, Department of Management, University of Isfahan
4 - Centre for Research Services, Institute of Management and Research Services (IPPP), University of Malaya (UM), Kuala Lumpur, Wilayah Persekutuan 50603, Malaysia

Received: 2023-07-23 Accepted : 2023-11-17 Published : 2024-01-01

Keywords: Partnership Quality, Service Outsourcing, Outsourcing Success, Grounded Theory,

Abstract :

Partnership quality has been known as one of the foremost critical determinants of outsourcing victory. Since the relationship is dynamic, it is important to understand both sides of the partner. The purpose of this study is design a model for the partnership quality in outsourcing services with focus on both sides. In order to achieve this goal, mixed method (qualitative-quantitative) and grounded theory approach have been used. In the qualitative section, in order to identify the categories of the contextual model of partnership quality, a semistructured interview has been used in the service provider and client section by theoretical sampling method. The statistical population in the qualitative section included all managers and heads and expert contractors in 90 contracts during the 3 years. The total number of statistical population in the qualitative section was 176 people. In the qualitative section, grounded theory and MAXQDA software are used for analysis. Then, through the coding process in three sections, open, central and selective data of qualitative section were organized. In the quantitative research section, the statistical population included district heads, deputies, officials, supervisors on the one hand, and all their contractors and representatives on the other. The total number of statistical population in the quantitative section was 623 people. In the quantitative research section, in order to test the obtained pattern, the required data were collected by a designed questionnaire. To analyses the data collected, the partial least squares (PLS) method was used. According to the results of this research, the most important operational strategies are, empowerment, standardization and technology improvement to achieve the partnership quality in outsourcing services.

References:

Ahimbisibwe, A. (2015). Critical success factors for outsourced software development projects from a vendor's perspective: A structural equation modelling analysis of traditional plan-based and agile methodologies. doi:https://doi.org/10.26686/wgtn.17009768.v1

Ali, S., Abbasi, I. A., Mustafa, E. E., Wahid, F., & Huang, J. (2022). Practitioner’s view of the success factors for software outsourcing partnership formation: an empirical exploration. Empirical Software Engineering, 27(2), 52. doi:https://doi.org/10.1007/s10664-021-10044-y

Ali, S., Hongqi, L., Khan, S. U., Zhongguo, Y., & Liping, Z. (2017). Success factors for software outsourcing partnership management: An exploratory study using systematic literature review. IEEE Access, 5, 23589-23612. doi: https://doi.org/10.1109/access.2017.2764946

Anderson, J. C., & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of marketing, 54(1), 42-58. doi:https://doi.org/10.1177/002224299005400103

Bashir, I., Hamid, B., Jhanjhi, N., & Humayun, M. (2020). Systematic literature review and empirical study for success factors: client and vendor perspective. J Eng Sci Technol, 15(4), 2781-2808. doi:https://doi.org/10.1049/iet-sen.2018.0010

Blijleven, V., Gong, Y., Mehrsai, A., & Koelemeijer, K. (2019). Critical success factors for Lean implementation in IT outsourcing relationships: A multiple case study. Information Technology & People, 32(3), 715-730. doi: https://doi.org/10.1108/itp-01-2016-0002

Bryant, A., & Charmaz, K. (2007). Grounded theory in historical perspective: An epistemological account. The SAGE handbook of grounded theory, 31-57. doi:https://doi.org/10.4135/9781848607941.n1

Cha, K.-J., & Kim, Y. S. (2018). Critical success factors for mutual collaboration with suppliers in IT outsourcing industry: a case study of a top IT outsourcing company in Korea. Enterprise Information Systems, 12(1), 76-95. doi: https://doi.org/10.1080/17517575.2016.1196734

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.

Chou, S.-W., Techatassanasoontorn, A. A., & Hung, I. (2015). Understanding commitment in business process outsourcing relationships. Information & management, 52(1), 30-43. doi:https://doi.org/10.1016/j.im.2014.10.003

Corbin, J. M., & Strauss, A. (1990). Grounded theory research: Procedures, canons, and evaluative criteria. Qualitative sociology, 13(1), 3-21. doi:https://doi.org/10.1007/bf00988593

Creamer, E. G., & Schoonenboom, J. (2018). Inter-method mixing as a gateway to methodological innovation. In (Vol. 62, pp. 879-886): SAGE Publications Sage CA: Los Angeles, CA.

Creswell, J. W. (2009). Mapping the field of mixed methods research. In (Vol. 3, pp. 95-108): SAGE publications Sage CA: Los Angeles, CA.

de Carvalho, V. D. H., Poleto, T., & Seixas, A. P. C. (2018). Information technology outsourcing relationship integration: a critical success factors study based on ranking problems (P. γ) and correlation analysis. Expert Systems, 35(1), e12198. doi:https://doi.org/10.1111/exsy.12198

Duhamel, F. B., Gutiérrez-Martínez, I., Picazo-Vela, S., & Luna-Reyes, L. (2018). Determinants of collaborative interfaces in public-private IT outsourcing relationships. Transforming Government: People, Process and Policy, 12(1), 61-83. doi:https://doi.org/10.1108/tg-07-2017-0042

Ee, O., Abdul Halim, H., & Ramayah, T. (2013). The effects of partnership quality on business process outsourcing success in Malaysia: key users perspective. Service Business, 7, 227-253. doi:https://doi.org/10.1007/s11628-012-0152-z

Espino-Rodríguez, T. F., & Ramírez-Fierro, J. C. (2018). Outsourcing performance in hotels: Evaluating partnership quality. Sustainability, 10(8), 2766. doi:https://doi.org/10.3390/su10082766

Faggiolani, C. (2011). Perceived identity: Applying grounded theory in libraries. Perceived Identity: Applying Grounded Theory in Libraries, 1-33.

Far, M. S., Kaffashpoor, A., & Naami, A. (2022). Proposing a Customer Experience Management Model Based on the Grounded Theory Approach in Aviation Industry (Case study: Taban Airline). Journal of System Management (JSM), 8, 2. doi:https://doi.org/10.30495/jsm.2022.1945579.1576

Fateh, M., Mohammadi, M., & Mousavi Moheb, S. M. (2023). Design a competency model for salespeople in food distribution industry of Iran. Journal of System Management, 9(4), 41-54. doi:https://doi.org/10.30495/JSM.2023.1980096.1774

Flint, D. J. (1998). Change in customers' desired value: A grounded theory study of its nature and processes based on business customers' lived experiences in the United States automobile industry: The University of Tennessee.

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. In: Sage Publications Sage CA: Los Angeles, CA.

Gasson, S., & Waters, J. (2013). Using a grounded theory approach to study online collaboration behaviors. European Journal of Information Systems, 22(1), 95-118. doi:https://doi.org/10.1057/ejis.2011.24

Glaser, B., & Strauss, A. (1967). Research. In: Citeseer.

Glaser, B. G. (1965). The constant comparative method of qualitative analysis. Social problems, 12(4), 436-445. doi:

https://doi.org/10.2307/798843

Gopalakrishnan, S., Guilbault, M., & Ojha, A. K. (2017). A view from the vendor’s side: factors that determine satisfaction. South Asian Journal of Business Studies. doi:https://doi.org/10.1108/sajbs-11-2016-0092

Guetterman, T. C., Babchuk, W. A., Howell Smith, M. C., & Stevens, J. (2019). Contemporary approaches to mixed methods–grounded theory research: A field-based analysis. Journal of Mixed Methods Research, 13(2), 179-195. doi:https://doi.org/10.1177/1558689817710877

Gupta, V., & Sushil. (2014). Influence of relationship quality on is/it outsourcing success: Indian vendors’ perspective. Journal of Information Technology Management, 25(3), 1-19.

Hair, J. F. (2009). Multivariate data analysis.

Huo, B., Fu, D., Zhao, X., & Zhu, J. (2016). Curbing opportunism in logistics outsourcing relationships: The role of relational norms and contract. International Journal of Production Economics, 182, 293-303. doi:https://doi.org/10.1016/j.ijpe.2016.07.005

Ismail, F., & Razali, R. (2017). A Framework for Managing Software Testing Outsourcing Projects. Journal of Telecommunication, Electronic and Computer Engineering (JTEC), 9(3-4), 35-44.

Katato, T., Leelawat, N., & Tang, J. (2019). Factors affecting to long-term relationship of outsourcing: A case study of Thailand. Journal of Administrative and Business Studies, 5(5), 281-290. doi:https://doi.org/10.20474/jabs-5.5.3

Lee, J.-N. (2001). The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success. Information & management, 38(5), 323-335. doi:https://doi.org/10.1016/s0378-7206(00)00074-4

Lee, J.-N., & Kim, Y.-G. (1999). Effect of partnership quality on IS outsourcing success: conceptual framework and empirical validation. Journal of Management information systems, 15(4), 29-61. doi:https://doi.org/10.1080/07421222.1999.11518221

Liu, G. H. W., Huang Chua, C. E., & Hu, Y. (2021). Partnership in Recruitment Process Outsourcing Projects: The Outsourcing Firm Perspective. Project Management Journal, 52(4), 354-366. doi:https://doi.org/10.1177/87569728211014370

Mahdavi, M., Sheikh Al-Islami, N., Hasanmoradi, N., & Shokri, N. (2022). Designing a people capability maturity model among faculty members (Case study: Islamic Azad University of Fars Province. Journal of System Management, 8(1), 111-126. doi:https://doi.org/10.30495/JSM.2022.1944405.1569

Mehta, A., & Mehta, N. (2017). Moving toward an integrated framework of offshore information technology outsourcing success. Journal of Global Information Technology Management, 20(3), 171-194. doi:https://doi.org/10.1080/1097198x.2017.1354596

Newell, W. J., Ellegaard, C., & Esbjerg, L. (2019). The effects of goodwill and competence trust on strategic information sharing in buyer–supplier relationships. Journal of Business & Industrial Marketing, 34(2), 389-400. doi:https://doi.org/10.1108/jbim-02-2017-0035

Ng, K., & Hase, S. (2008). Grounded suggestions for doing a grounded theory business research. Electronic Journal of Business Research Methods, 6(2), pp183‑198-pp183‑198.

Peachey, J. W., Cohen, A., Shin, N., & Fusaro, B. (2018). Challenges and strategies of building and sustaining inter-organizational partnerships in sport for development and peace. Sport management review, 21(2), 160-175. doi:https://doi.org/10.1016/j.smr.2017.06.002

Qi, C., & Chau, P. Y. (2012). Relationship, contract and IT outsourcing success: Evidence from two descriptive case studies. Decision Support Systems, 53(4), 859-869. doi:https://doi.org/10.1016/j.dss.2012.05.018

Rahman, H. U., Raza, M., Afsar, P., & Khan, H. U. (2021). Empirical investigation of influencing factors regarding offshore outsourcing decision of application maintenance. IEEE Access, 9, 58589-58608. doi:https://doi.org/10.1109/access.2021.3073315

Rahman, H. U., Raza, M., Afsar, P., Khan, H. U., & Nazir, S. (2020). Analyzing factors that influence offshore outsourcing decision of application maintenance. IEEE Access, 8, 183913-183926. doi:https://doi.org/10.1109/access.2020.3029501

Ralph, N., Birks, M., & Chapman, Y. (2015). The methodological dynamism of grounded theory. International journal of qualitative methods, 14(4), 1609406915611576. doi:https://doi.org/10.1177/1609406915611576

Rave, O., & Piskin, O. (2019). The way towards outsourcing success in start-ups: A multiple case study in Swedish software firms. In.

Ren, S. J.-F., Ngai, E., & Cho, V. (2010). Examining the determinants of outsourcing partnership quality in Chinese small-and medium-sized enterprises. International Journal of Production Research, 48(2), 453-475. doi:https://doi.org/10.1080/00207540903174965

Samadpouri Javid, M., Soltani, H., Kazemi, A., & Jafarpour, H. (2023). Proposing a GT-Based Optimal Policy Model for Cultural Organisations with Structural Analysis at Ministry of Cultural Heritage, Handicrafts, and Tourism in Dimensions of Flexibility, Ethical Appropriateness, and Organisational Benefit. Journal of System Management, 9(1), 145-157. doi:https://doi.org/10.30495/JSM.2023.1971578.1701

Sang, S., Lee, J. D., & Lee, J. (2010). E‐government adoption in Cambodia: a partial least squares approach. Transforming Government: People, Process and Policy, 4(2), 138-157. doi:https://doi.org/10.1108/17506161011047370

Schwarz, C. (2014). Toward an understanding of the nature and conceptualization of outsourcing success. Information & management, 51(1), 152-164. doi:https://doi.org/10.1016/j.im.2013.11.005

Strauss, A., & Corbin, J. (1990). Basics of qualitative research: Sage publications.

Strauss, A., & Corbin, J. (1998). Basics of qualitative research techniques.

Strauss, A. L., & Glaser, B. (2009). La scoperta della grounded theory. La scoperta della grounded theory, 1000-1019.

Svensson, G., Mysen, T., & Payan, J. (2010). Balancing the sequential logic of quality constructs in manufacturing-supplier relationships—Causes and outcomes. Journal of Business Research, 63(11), 1209-1214. doi:https://doi.org/10.1016/j.jbusres.2009.10.019

Tarvirdizadeh, D., Mirzaeidaryani, S., Nahidi AmirKhiz, M., Pasbani, M., & Honarmand Azimi, M. (2021). A Hybrid Approach in Designing and Validating a Green Quality Management Model in the Food Industry. Journal of System Management, 7(1), 191-232. doi:https://doi.org/10.30495/jsm.2021.1926288.1456

Tashakkori, A., & Teddlie, C. (2010). Putting the human back in ‘‘human research methodology’’: The researcher in mixed methods research. In (Vol. 4, pp. 271-277): Sage Publications Sage CA: Los Angeles, CA.

Walsh, I. (2015). Using quantitative data in mixed-design grounded theory studies: an enhanced path to formal grounded theory in information systems. European Journal of Information Systems, 24(5), 531-557. doi:https://doi.org/10.1057/ejis.2014.23

Yuan, Y., Chu, Z., Lai, F., & Wu, H. (2020). The impact of transaction attributes on logistics outsourcing success: A moderated mediation model. International Journal of Production Economics, 219, 54-65. doi:https://doi.org/10.1016/j.ijpe.2019.04.038