Lecture 5: Service sourcing

Question 1

explain the underlying idea behind the sourcing decisions framework

Answer 1

RBV represents a framework for understanding how companies can gain and sustain competitive advantages (SCAs) based on superior resources/capabilities

make, share, buy

Internal production (make) of those strategic resources
External procurement (buy) of non-strategic resources:

Question 2

Explain the interplay between contractual governance and relational governance

Answer 2

managing the relationship via an economic contract

relational governance: managing the relationship via social factors such as trust

Results suggest that contractual complexity and relational governance function as complements and that both are needed in strategic partnerships

Question 3

social embeddedness

Answer 3

transferring the tacit knowledge in the organisation’s to strategic partner..

is good at explaining strategic IS outsourcing

where tacit knowledge has to be transferred and integrated,
• where business-critical problems have to be addressed, and
• in order to understand the role of relational factors (e.g., trust and commitment

Question 4

IS business alignment

Answer 4

1. strategical alignment (strategy –> organisation), 2. structural alignment (formal organisational structure) 3., relational alignment (informal organisation of structure, agreed processes)–> relational is the

Question 5

knowledge gaps between vendor and client

Answer 5

business knowledge, IT infrastructure, working practises, project status –> leads to lack of relational alignment

Question 6

Social captal

Answer 6

close the gaps = better performance exchange

1. trust
2. identify with the interrelated forms
3. knowledge sharing norms (communication norms)

Question 7

Formal contracts

Answer 7

promises or obligations to perform particular actions in the future

Question 8

Formal contracts

Answer 8

promises or obligations to perform particular actions in the future

Question 9

absorpative capacity

Answer 9

the firms ability to recognise new information and assimilate it and use it - critical for its innovative abilities