The Calculation of the Perceived Benefits of Business process outsourcing (BPO) An empirical study of a Food industry company in Iran
Subject Areas :
Industrial Management
Sara Emadi
1
,
Shapoor Amin Shayan Jahromi
2
1 - M.A Student in Industrial Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran.
2 - Assistant Professor of Shiraz University
Received: 2018-01-10
Accepted : 2018-01-10
Published : 2012-10-22
Keywords:
Abstract :
This study presents a deep analysis of the benefits that senior managers, relate them to the BPO and that how these benefits affect the willingness of managers to increase the levels of BPO. The method of research was quantitative experimental. The statistical society is consisting of senior managers and experts in the dairy food industry in 1390 that were 50 and due to the small statistical community, all of it was studied. So the sample is also 50. To collect the data, we use the integration of the two standard questionnaires of outsourcing benefits and business process outsourcing from the Germany country. The data analysis method was partial least squares (PLS). This research presents the BPO benefits, which have been empirically and theoretically expressed, in a structural equation model (SEM). The quantitative analysis, show the interesting results. One of the remarkable results is that the cost programming has the higher value than the real cost savings, in one of the BPO benefits. And this means that the BPO market has been matured and the Pegahe Fars Company is now more sensitive to the marketing statements of the service providers of BPO than the previous years.
References:
Ajzen, I. & Fishbein, M. (1980). Underst&ing Attitudes & Predicting Social Behavior, prentice-Hall, Englewood. Cliffs, NJ.
-Ang, S. & Straub, D. (1998). Production & transaction economies & is outsourcing: a study of the US banking industry, MIS Quarterly, 4: 535-52.
Bahli, B. & Rivard, S. (2005). Validating measures of information technology outsourcing risk factors, Omega, 33:175-87.
Barney, J.B. (1986). Organizational culture: can it be a source of sustained competitive advantage?’’, Academy of Management Review, 11: 656-65.
Benamati, J.H. & Rajkumar, T.M. (2002). The application development outsourcing decision: an application of the technology acceptance model, Journal of Computer Information Systems, 42:35-43.
Borman, M. (2006). Applying multiple perspectives to the BPO decision: a CSE study of call centres in Australia, Journal of Information Technology, 21:99-115.
-Busi, M. & Mcivor, R. (2008). Setting the outsourcing research agenda: the top-10 most urgent outsourcing areas’’, Strategic Outsourcing: An International Journal, 1:18-197.
Coase, R.H. (1937). The nature of the firm, Economica (New Series), 4:386-405.
Conklin, D.W. (2005), ‘‘Risk & rewards in HR business process outsourcing’’, Long Range Planning, Vol. 38, pp. 579-98.
Currie,W. & Willcocks, L. (1998). Analyzing four types of IT sourcing decisions in the context of scale, client/supplier interdependency & risk mitigation’’, Information Systems Journal, 8: 119-43.
Davenport, T.H. & Short, J.E. (1990), ‘‘The new industrial engineering: information technology & business process redesign’’, Sloan Management Review, 31:11-27.
Dibbern, T. Goles, R.A. Hirschheim, B. Jayatilaka, (2004), Information systems outsourcing: a survey & analysis of the literature, The DATA BASE for Advances in Information Systems 35 (4):6–102.
Fornell, C., & Bookstein, F.(1982).Two Structural Equation Models: LISREL & PLS.
Gonzalez, R. & Gasco, J. (2006). Information systems outsourcing: a literature analysis Information & Management, 43:821-34.
Halvey, J.K. & Melby, B.M. (2000). Business Process Outsourcing – Process, Strategies & Contracts, John Wiley & Sons, New York, NY.
Heiko Gewald. 2010. The perceived benefits of business process outsourcing. Strategic Outsourcing: International Journal, 3(2) 89-105.
Heiko Gewald, Jens Dibbern. (2009). Risks & benefits of business process outsourcing. Information & Management.
-J. Lamberti, A. Po¨ hler, Die Industrialisierung des Backoffices am Beispiel der etb. (2004). H.-J. Lamberti, A. Marliere, A. Po¨ hler (Eds.), Management von Transaktionsbanken, Springer, Berlin, pp. 3–38.
Lacity, M. Willcocks, L. Feeny, D. (1996). The value of selective IT sourcing, Sloan Management Review, 37(3): 13-25.
Loh L, Venkatraman N. (1992). Determinants of information technology outsourcing. Journal of Management Information Systems؛ 9(1): 7–24.
S. Featherman, P.A. Pavlou, (2003). Predicting e-Services adoption: a perceived risk facets perspective, International Journal of Human–Computer Studies 59:451–474.
Mir&a, S.M. & Kim, Y.-M. (2006). Professional versus political contexts: institutional mitigation & the transaction cost heuristic in information systems outsourcing’’, MIS Quarterly, Vol. 30, pp. 725-53.
Nevitt, J., & Hancock, G.R. (2001). Performance of bootstrapping approaches to model test statistics & parameter st&ard error estimation in structural equation modeling. Structural Equation Modeling, 8(3), 353-377.
Pegah Company statement. 2006- 2011.
Quinn, J.B. (1999). Strategic outsourcing: leveraging knowledge capabilities’’, Sloan Management Review, 40: 4.
Quinn, J.B. & Hilmer, F.G. (1994). Strategic outsourcing’’, Sloan Management Review, 35: 43-55.
Ross, J.W. & Westerman, G. (2004). Preparing for utility computing: the role of IT architecture & relationship management’’, IBM Systems Journal, 43:5-19.
Shepherd, A. (1999). Outsourcing IT in a changing world. European Management Journal, 17: 64-84.
Smith, M.A., Mitra, S. & Nara simhan, S. (1998). Information systems outsourcing: a study of prevent firm characteristics’’, Journal of Management Information Systems, 15: 60-92.
TPI, The TPI Index: An Informed View of the State of the Global Outsourcing Market. (2005). last accessed: 06.2005, at: http://www.tpi.net.
Venkatesh, V., Morris, M.G., Davis, G.B. & Davis, F.D. (2003). User acceptance of information technology: toward a unified view’’, MIS Quarterly, 27: 425-78.
Wahrenburg, M., Ko¨nig, W., Hackethal, A., Weitzel, T., Beimborn, D., Franke, J., Gellrich, T., Holzha¨user, M. & Schwarze, F. (2005). Kreditprozess-Management – Status Quo und Zukunft des Kreditprozesses bei Deutschl&s 500 gro¨ßten Kreditinstituten. Books on Dem&, Norderstedt.
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Ajzen, I. & Fishbein, M. (1980). Underst&ing Attitudes & Predicting Social Behavior, prentice-Hall, Englewood. Cliffs, NJ.
-Ang, S. & Straub, D. (1998). Production & transaction economies & is outsourcing: a study of the US banking industry, MIS Quarterly, 4: 535-52.
Bahli, B. & Rivard, S. (2005). Validating measures of information technology outsourcing risk factors, Omega, 33:175-87.
Barney, J.B. (1986). Organizational culture: can it be a source of sustained competitive advantage?’’, Academy of Management Review, 11: 656-65.
Benamati, J.H. & Rajkumar, T.M. (2002). The application development outsourcing decision: an application of the technology acceptance model, Journal of Computer Information Systems, 42:35-43.
Borman, M. (2006). Applying multiple perspectives to the BPO decision: a CSE study of call centres in Australia, Journal of Information Technology, 21:99-115.
-Busi, M. & Mcivor, R. (2008). Setting the outsourcing research agenda: the top-10 most urgent outsourcing areas’’, Strategic Outsourcing: An International Journal, 1:18-197.
Coase, R.H. (1937). The nature of the firm, Economica (New Series), 4:386-405.
Conklin, D.W. (2005), ‘‘Risk & rewards in HR business process outsourcing’’, Long Range Planning, Vol. 38, pp. 579-98.
Currie,W. & Willcocks, L. (1998). Analyzing four types of IT sourcing decisions in the context of scale, client/supplier interdependency & risk mitigation’’, Information Systems Journal, 8: 119-43.
Davenport, T.H. & Short, J.E. (1990), ‘‘The new industrial engineering: information technology & business process redesign’’, Sloan Management Review, 31:11-27.
Dibbern, T. Goles, R.A. Hirschheim, B. Jayatilaka, (2004), Information systems outsourcing: a survey & analysis of the literature, The DATA BASE for Advances in Information Systems 35 (4):6–102.
Fornell, C., & Bookstein, F.(1982).Two Structural Equation Models: LISREL & PLS.
Gonzalez, R. & Gasco, J. (2006). Information systems outsourcing: a literature analysis Information & Management, 43:821-34.
Halvey, J.K. & Melby, B.M. (2000). Business Process Outsourcing – Process, Strategies & Contracts, John Wiley & Sons, New York, NY.
Heiko Gewald. 2010. The perceived benefits of business process outsourcing. Strategic Outsourcing: International Journal, 3(2) 89-105.
Heiko Gewald, Jens Dibbern. (2009). Risks & benefits of business process outsourcing. Information & Management.
-J. Lamberti, A. Po¨ hler, Die Industrialisierung des Backoffices am Beispiel der etb. (2004). H.-J. Lamberti, A. Marliere, A. Po¨ hler (Eds.), Management von Transaktionsbanken, Springer, Berlin, pp. 3–38.
Lacity, M. Willcocks, L. Feeny, D. (1996). The value of selective IT sourcing, Sloan Management Review, 37(3): 13-25.
Loh L, Venkatraman N. (1992). Determinants of information technology outsourcing. Journal of Management Information Systems؛ 9(1): 7–24.
S. Featherman, P.A. Pavlou, (2003). Predicting e-Services adoption: a perceived risk facets perspective, International Journal of Human–Computer Studies 59:451–474.
Mir&a, S.M. & Kim, Y.-M. (2006). Professional versus political contexts: institutional mitigation & the transaction cost heuristic in information systems outsourcing’’, MIS Quarterly, Vol. 30, pp. 725-53.
Nevitt, J., & Hancock, G.R. (2001). Performance of bootstrapping approaches to model test statistics & parameter st&ard error estimation in structural equation modeling. Structural Equation Modeling, 8(3), 353-377.
Pegah Company statement. 2006- 2011.
Quinn, J.B. (1999). Strategic outsourcing: leveraging knowledge capabilities’’, Sloan Management Review, 40: 4.
Quinn, J.B. & Hilmer, F.G. (1994). Strategic outsourcing’’, Sloan Management Review, 35: 43-55.
Ross, J.W. & Westerman, G. (2004). Preparing for utility computing: the role of IT architecture & relationship management’’, IBM Systems Journal, 43:5-19.
Shepherd, A. (1999). Outsourcing IT in a changing world. European Management Journal, 17: 64-84.
Smith, M.A., Mitra, S. & Nara simhan, S. (1998). Information systems outsourcing: a study of prevent firm characteristics’’, Journal of Management Information Systems, 15: 60-92.
TPI, The TPI Index: An Informed View of the State of the Global Outsourcing Market. (2005). last accessed: 06.2005, at: http://www.tpi.net.
Venkatesh, V., Morris, M.G., Davis, G.B. & Davis, F.D. (2003). User acceptance of information technology: toward a unified view’’, MIS Quarterly, 27: 425-78.
Wahrenburg, M., Ko¨nig, W., Hackethal, A., Weitzel, T., Beimborn, D., Franke, J., Gellrich, T., Holzha¨user, M. & Schwarze, F. (2005). Kreditprozess-Management – Status Quo und Zukunft des Kreditprozesses bei Deutschl&s 500 gro¨ßten Kreditinstituten. Books on Dem&, Norderstedt.
