• Title/Summary/Keyword: Outsourcing Performance

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An Empirical Analysis of the Effect of Governance-Peripheral Knowledge Fit on the Performance of IT Project Outsourcing: Focusing on the Perceptual Gap between Client and Vendor (IT 프로젝트 아웃소싱에서 거버넌스-주변지식의 조화가 프로젝트 성과에 미치는 영향에 대한 실증 분석: 고객사-공급사 간 인지차를 중심으로)

  • Seonyoung Shim
    • Information Systems Review
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    • v.19 no.1
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    • pp.147-168
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    • 2017
  • We investigated perceptual similarity and the difference between client and vendor in information technology (IT) outsourcing projects. Specifically, we focused on each player's perception of how the fit of governance and peripheral knowledge affects the performance of IT project outsourcing. For 107 IT projects, we surveyed both client and vendor in the same IT projects and compared the responses of each side. Through a dyadic analysis, we first found that both client and vendor put more weight on the vendor's peripheral knowledge than that of the client as a positive influencer of project performance. However, regarding the governance style of an IT project, client and vendor showed completely different perspectives. The client believed that the vendor's peripheral knowledge positively contributes to the performance of IT project under the governance of outcome control. However, the vendor showed that its peripheral knowledge creates synergy effects under the governance of process control. Our interpretation of the perceptual similarity and difference between client and vendor delivers managerial implications for businesses that process IT projects.

Factors Affecting the Conflicts in the Outsourced Information System Development (정보시스템 아웃소싱 개발에 따른 갈등 영향 요인)

  • Cho, Dong-Hwan;Choi, Hun
    • The Journal of the Korea Contents Association
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    • v.10 no.12
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    • pp.342-351
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    • 2010
  • This study aims to investigate the major causes of conflict between clients and vendors in the outsourced IS development. A research model is established based on the prior research of IS outsourcing, system development and conflict. An empirical study was executed using 214 survey questionnaire of project teams composed of client and vendor with PASW 18.0. Research results using multiple regressions show that contract specificity, requirements certainty, objective alignment and client knowledge have negative effects on conflict. This research results will provide various implications for outsourcing project success.

Relevance of Outsourcing S/W Process Quality and Product Quality with IT Adoption Factors (IT 도입요소를 고려한 외주 S/W 프로세스품질과 제품품질)

  • Lee, Jong-Moo;Park, Cheol-Soo;Yoo, Young-Kwan
    • The Journal of Information Systems
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    • v.18 no.4
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    • pp.131-153
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    • 2009
  • Due to the deterioration of the business environment, many companies become more interested in IT adoption to strengthen their internal competence. The recent expansion of the ERP adoption in the small and medium-sized enterprises (SMEs) can be interpreted as an example for this. However there are still a number of questions over the outsourcing effectiveness and its performance of IT adoption by characteristics of SMEs. This study aims to investigate the relationship between the software process quality and the product quality, and additionally the moderating effect of IT adoption factors, from the case of SMEs' ERP adoption by the outsourcing. For this purpose, the empirical analysis through the structural equation model has been carried out, based on the software quality model defined in ISO/IEC 15504 and ISO/IEC 9126. The result of analysis shows that the acquisition process quality can affect the product quality characteristics, currently applied in the national software quality certification, and this supports the practical usefulness of the ISO standard of software engineering. But another result shows that there is little moderating effect by IT adoption factors, in contrast to the expectation, and this can be explained due to the inappropriate measurement and the data constraint such as short duration-time of IT adoption. These can be used as an informative reference for continuing studies of the quality model application and the effect of IT adoption factors in SMEs.

Impact of Outsourcing Risk on Corporate Performance (아웃소싱의 리스크가 기업성과에 미치는 영향)

  • Kim, Lark Sang
    • Journal of Digital Convergence
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    • v.19 no.2
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    • pp.175-182
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    • 2021
  • In this study, small and medium-sized manufacturing and distribution businesses were asked to demonstrate how the risks that could arise from implementing ITOs affect their performance. Small and medium-sized enterprises that want to reduce costs or secure competitiveness through outsourcing ITO conducted research to identify and analyze risks of ITO and improve corporate performance. Strategic, technical, and financial risks were selected as independent variables for analysis by the survey method. In addition, relationship risk was selected as a parameter and corporate performance was selected as a dependent variable to conduct a path analysis. The analysis showed that the variables injected as independent variables had indirect and total effects on corporate performance. This can be interpreted as the higher the level of awareness of strategic and technological risks and financial risks, the higher the level of relational risk, and thus the positive impact on corporate performance. We expect to improve corporate performance through analysis of more and more risk factors in the future.

Promotional Plans of Fourth-Party Logistics in Korea: Applicability in Entering the Chinese Logistics Market

  • Oh, Moon-Kap
    • Journal of Distribution Science
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    • v.13 no.2
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    • pp.25-33
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    • 2015
  • Purpose - This study aims to disclose the problems of both the government and the logistics industry regarding fourth-party logistics, and to provide various solutions at the level of enterprises as well as the government for the introduction of fourth-party logistics in China. Research design, data, and methodology - This study aims to reveal how a shipping company recognizes the creation of partnerships with fourth-party logistics providers, and it reveals several related implications. Results - Fourth-party logistics organizations can be used to achieve maximum business performance as professional logistics companies by incorporating the benefits of outsourcing and insourcing. Outsourcing logistics services through focusing on core competencies and improving customer service can have financial effects and advantages such as the simplification of labor issues. Conclusions - This study did not investigate Korean enterprises through an empirical analysis and provided fourth-party logistics concepts and promotional plans according to domestic and foreign literature. Further studies shall investigate not only the Korean fourth-party logistics model but also the training of logistics professionals to generate profits for both shippers as well as logistics enterprises.

Deriving an ASP Success Model: An Application to Small Businesses (ASP 기반 정보시스템 성공 모형 도출: 소기업 적용을 중심으로)

  • Park, Jung-Hyun;Kim, Jeoung-Kun;Kim, Jong-Uk;Lee, Hee-Seok
    • Asia pacific journal of information systems
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    • v.14 no.1
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    • pp.43-58
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    • 2004
  • Recently, a market size for IT outsourcing has grown. As internet technology has been developed for accessing information resources, information systems have become internet-based, which is called an ASP(Application Service Provider); evaluating the performance for ASP becomes important. Therefore, this paper attempts to investigate the salient characteristics of ASP. An ASP success model is proposed based on information systems success models found in the literature. Our model is tested through a survey from 291 small companies. LISREL is used to demonstrate the suitability of our model, and the success factors for ASP are also investigated. Our result is likely to help provide useful guidelines for the successful ASP implementations.

An Exploratory Study on the Relationships of ASP Usage Pattern, Satisfaction, and Firm Performance: User Perspective in Korean Small Businesses (ASP 서비스 활용유형, 만족도, 기업성과의 관계에 대한 탐색적 연구: 국내 소기업 사용자 관점)

  • Kim, Sung-Hong;Kim, Jin-Han;Lee, Sang-Gun
    • Information Systems Review
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    • v.7 no.1
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    • pp.173-193
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    • 2005
  • ASP service that is emerging as a new form of application outsourcing has the advantage of lower cost and risk. Therefore, ASP service may be attractive for small firms and even some new companies. However, studies about ASP service are rare in academic and professional journals, and most of the articles about outsourcing were considering mainly large enterprises. The purpose of this article is to analyze the effects of the some context variables of Korean small businesses on ASP service usage pattern, and the effect of ASP service usage pattern on user satisfaction and firm performance. The analysis results show that firm size has a positive impact on IT need of small businesses, and IT need of small businesses have a positive impact on training period and past usage period. Also, firm size, IT need, training period has an positive impact on ASP service usage pattern. However, ASP service usage period has no relationship on ASP service usage pattern. Finally, ASP service usage pattern has a positive impact on firm performance and user satisfaction, and user satisfaction has an impact on firm performance.

A Query Result Integrity Assurance Scheme Using an Order-preserving Encryption Scheme in the Database Outsourcing Environment (데이터베이스 아웃소싱 환경에서 순서 보존 암호화 기법을 이용한 질의 결과 무결성 검증 기법)

  • Jang, Miyoung;Chang, Jae Woo
    • Journal of KIISE
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    • v.42 no.1
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    • pp.97-106
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    • 2015
  • Recently, research on database encryption for data protection and query result authentication methods has been performed more actively in the database outsourcing environment. Existing database encryption schemes are vulnerable to order matching and counting attack of intruders who have background knowledge of the original database domain. Existing query result integrity auditing methods suffer from the transmission overhead of verification object. To resolve these problems, we propose a group-order preserving encryption index and a query result authentication method based on the encryption index. Our group-order preserving encryption index groups the original data for data encryption and support query processing without data decryption. We generate group ids by using the Hilbert-curve so that we can protect the group information while processing a query. Finally, our periodic function based data grouping and query result authentication scheme can reduce the data size of the query result verification. Through performance evaluation, we show that our method achieves better performance than an existing bucket-based verification scheme, it is 1.6 times faster in terms of query processing time and produces verification data that is 20 times smaller.

Study of the Effects of Supplier Monitoring on Shop floor Productivity (공급사 모니터링이 현장생산성에 미치는 영향에 관한 연구)

  • Cho, BooYun;Kang, Gi-Choon;Hyun, MinCheol
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.15 no.12
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    • pp.7025-7039
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    • 2014
  • Focal companies (hereafter called buyers) adopt outsourcing practices from a supply chain management strategy to be competitive. Buyers face the bridge transfer after outsourcing contracts, and the monitoring practices would be the only control mechanism left to prevent losing control over the suppliers. This study suggests the set of monitoring practices (i.e., capability, activity and outcome monitoring) as the independent variables to enhance the buyer-supplier collaboration and supplier's performance. In addition the buyer's efforts of monitoring are assumed to influence the buyer's shop floor productivity mediated by the supplier's performance and buyer-supplier collaboration. The results showed that the monitoring practices are meaningful antecedents to the supplier's performance and buyer-supplier collaboration, which fully mediates between the monitoring practices and buyer's shop floor productivity. The mediating role of the buyer-supplier collaboration between activity monitoring and shop floor productive has been rejected, because the negative effect of activity monitoring on buyer-supplier collaboration conflicts with the positive impact of buyer-supplier collaboration on shop floor productive. The theoretical contribution and managerial implications with limitations have been discussed.

An Effect of Concreteness and Fairness of Service Contract on Performance of Service Provider in Logistics Outsourcing (물류계약 조항의 구체성과 공정성이 물류기업의 성과에 미치는 영향)

  • Kim, Jin-Su;Song, Sang-Hwa
    • Journal of Korea Port Economic Association
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    • v.28 no.2
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    • pp.129-153
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    • 2012
  • Even though logistics service outsourcing becomes widespread in manufacturing and service industries, logistics service providers encounter fierce competition and lower profit. Decreased profit has negative impact on service providers' competitiveness, which in turn threats successful relationship with shippers. In this paper, we investigate the factors which influence the performance of service providers. Factors related to service contract are examined and we test an effect of concreteness and fairness of service contract. PLS (Partial Least Square) modeling method is applied and validated using data from logistics service providing companies in Korea. In the model, service contract clauses are classified into two categories including cost and risk sharing terms. PLS analysis shows that partnership and performance of service relationship is improved when contract clauses are specified in detail. This study will contribute in providing an operational direction in effectively establishing a positive relationship between the logistics service provider and the shipper.