AIB 2012 Conference Proceedings - Academy of International ...

MONDAY
The Rise of Global Service Delivery Networks: Network Conditions and Embedded Strategies
Stephan Manning, University of Massachusetts Boston
Pratyush Bharati, University of Massachusetts Boston
International business scholars increasingly acknowledge the embeddedness of internationalization strategies
within global networks of client and supplier relations. Following this paradigm, we investigate the role of
network conditions and embedded competitive strategies in driving the global distribution of service delivery in
the global services industry. Based on comprehensive data from the Offshoring Research Network, we show
that managing time differences through global delivery models is a major driver of internationalizing operations
in this industry. Providers from developed countries thereby respond to increasing global competitive pressures
as well as clients' interest in using qualified personnel from abroad. Providers from developing countries, in turn,
internationalize to reduce time differences to clients and increase their overall global presence, which helps
them stabilize client relationships, yet at the expense of margins. Our findings demonstrate the growing
importance of global competitive dynamics, not least between developing and developed country firms, and the
increasing role of global rather than domestic or regional client orientations in driving internationalization, in
particular in business services. (For more information, please contact: Stephan Manning, University of
Massachusetts Boston, USA: stephan.manning@umb.edu)
Information Processing Competency in Global Service Delivery: An Empirical Analysis of Knowledge Process
Outsourcing in Service Supply Chains
Vaidy Jayaraman, University of Miami
Stephanie Lu Wang, University of Miami
Yadong Luo, University of Miami
Antony Paulraj, University of North Florida
We draw upon the information processing theory to develop a better understanding of how the fit between
information processing (IP) needs and IP capabilities would influence firm performance. The model differs from
previous studies by proposing a moderating effect of inter-organizational cultural friction and innovativeness
orientation on the relationship between IP needs – IP capabilities alignment and firm performance. We also take
a vendor's perspective and use survey data that we collected from 205 Indian KPO vendors and four different
analytical techniques to rigorously analyze the hypothesized relationships. Our results provide strong support for
the notion that the congruence between IP capabilities and IP needs will lead to superior firm performance –
revenue growth, capacity enhancement and client satisfaction. We also find inter-organizational cultural friction
and innovativeness orientation strategies to strengthen the association between IP needs – IP capabilities
alignment and global service delivery performance. Implications for future research and practice within
knowledge intensive service supply chains are offered. (For more information, please contact: Stephanie Lu
Wang, University of Miami, USA: slu@bus.miami.edu)
Moving Along the Value Chain: The International Expansion of Thailand-listed Firms
Pavida Pananond, Thammasat Business School
This paper presents an overview of findings from the newly created firm-level database on Thai multinationals.
It shows that Thai multinationals with substantial OFDI activities mostly hail from industries whose value chains
are globalized across countries, either through a producer- or buyer-driven mechanism. With sufficient evidence
suggesting that the international expansion of firms within these chains differ, we suggest that the international
business literature on emerging multinationals should integrate the global value chain perspective in analyzing
how the different mechanism and governance of the chains may influence the international expansion patterns
of developing-country firms that initially serve as suppliers to foreign MNEs but later became multinationals
themselves. (For more information, please contact: Pavida Pananond, Thammasat Business School, Thailand:
pavida@tbs.tu.ac.th)
AIB 2012 Conference Proceedings
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