Understanding the interplay of institutional logics and management practices in impact sourcing

Abstract

AbstractThis article draws on the evidence gathered from a research project in the area of global information technology outsourcing (GITO) involving a US‐based vendor of medical billing and transcription processing with a subsidiary in a remote area of Pakistan. It contributes to recent debates on impact sourcing—understood as GITO offering social value for marginalized groups in society. Prior research to date has focused on “social mission”–driven impact sourcing initiatives, but examples of mainstream “market‐driven” GITO's engagement in impact sourcing work are largely absent in the impact sourcing literature. Using qualitative methods, this study explores the interplay between institutional logics and management practices of a market‐driven GITO organization engaged in impact sourcing work. The findings identify family, community, and profession logics existing in the subsidiary location and management practices of the GITO organization responding to these logics. We abstract the practices into three mechanisms (ie, synchronization, bridging, and embedding) and present a process model that explains the dynamics of institutional logics and institutionally aligned management practices. This study offers both theoretical and practical implications to understand the implementation of impact sourcing initiatives in market‐driven GITO scenarios.