Global Clients Research Articles

The unbalanced indirect effects of task characteristics on performance in professional service outsourcing

As emerging markets have been playing more and more important roles in the global outsourcing markets, many companies from industrialized countries started to outsource various complex business processes oversea intending to take advantage of talented workforce at low cost. In this study, we focus on the challenging aspects and identify complex relationships that exist in the professional service outsourcing context from the service provider's perspective. Building on information processing theory, this paper aims to explain how task characteristics affect performance differently through a service provider's customer orientation and client integration. The unbalanced effects identified in this study influence the service provider's performance contradictorily and largely contribute to those unsatisfied results in professional service outsourcing. Using survey data from 192 Indian professional service providers, we find that both service provider's customer orientation and client integration are positively associated with its performance, while the impacts of two task characteristics (complexity and security) on customer orientation and client integration are in opposite direction. The unbalanced effects raise challenges in properly managing tasks to enhance performance. This study contributes to the much-needed efforts in the study of professional service outsourcing, a new and fast growing cross-border professional service activity. Managerial implications are also drawn from our study to practicing global clients and offshore service providers on how to successfully manage inter-organizational relations in outsourcing process to achieve expected benefits.

Multiple foci of commitment and intention to quit in knowledge-intensive organizations (KIOs): what makes professionals leave?

This study contributes to our understanding of the link between the multiple foci of commitment (i.e. organization, profession, team, and/or client) and the intention to quit in a knowledge-intensive organizational context. This link is important to understand given that KIOs are reliant upon the commitment of their employees in order to survive. Drawing upon the Theory of Attitudes, which enables us to link commitment and intention to quit, and the Field Theory, which enables us to understand how employees commit to various foci, we ask two research questions: (1) What is the independent impact of the professionals’ commitment to the organization, profession, team, and client on the ability of the organization to retain professionals? (2) What is the impact of the interaction between these foci of commitment (i.e. organization, profession, team, and client) and retention? Multiple regression analyses are based on data from 282 employees of a global KIO which provides outsourcing and consulting services on HRM and employment services to around 40 global clients. Our findings show that (i) organizational commitment and team commitment are negatively, and profession commitment is positively related to the professionals’ intention to quit; (ii) organizational–profession commitment interaction is negatively, and team profession commitment interaction is positively linked to the intention to quit of professionals. These results are further interpreted by drawing on 34 semi-structured interviews conducted with the professionals from the same global knowledge-intensive organization. Our results have significant implications for the leaders in KIOs as retention of such valuable human capital is central to their success.

Hybrid Models as Strategic Opportunity? The Global Challenge of Business Service Providers

This study contributes to research on catch-up strategies of firms in Africa by examining the strategic potential of hybrid business models which balance market profitability with social impact. We investigate the potential of hybrid models in the increasingly important global outsourcing sector for the case of ‘impact sourcing’ - hiring and training of disadvantaged youth for providing business services to global clients. Based on field studies in Kenya and South Africa, we find that while regular outsourcing firms struggle to compete with global peers, impact sourcing service providers have managed to access underutilized labor markets and co- develop a market niche in response to increasing client interest in socially responsible outsourcing. Findings have important implications for research on late-comer economies, hybrid models and the outsourcing sector.

Internationalization of emerging Indian multinationals: Linkage, leverage and learning (LLL) perspective

The multi-polar world in which we now live and work demands re-examination and refinement of the traditional understanding of the internationalization strategies and competitive advantages of multinational firms by incorporating the characteristics of firms from emerging economies. Based on interviews in four Indian multinationals in different industry segments, we present the “voices” of Indian corporate leaders to provide preliminary evidence on the primary motives behind the internationalization process of emerging multinationals from the perspective of linkage, leverage and learning (LLL). We show how the case study organizations have evolved themselves to become credible global players by leveraging on their learning through targeted acquisitions in developed markets to acquire intangible assets and/or following global clients in search of new markets and competitive advantages.

What Firms Want: Investigating Globalization's Influence on the Market for Lawyers in Korea

This article addresses one of the central debates regarding globalization: how best to approach liberalizing markets in order to balance the interests of local and non-local actors and institutions. It takes the legal services market as its focus and draws on the South Korean (“Korea”) experience as a case study. Korea recently liberalized its regulatory approach to legal services by changing both its method of producing lawyers (including initiating a graduate level law school system and drastically increasing the proportion of bar exam passers) and allowing foreign competition to directly enter its market through foreign law firms and foreign-licensed lawyers working as foreign legal consultants. Arguments for liberalization suggest that competition from foreign actors will introduce benefits to the local market that are particularly important to global actors. In the legal services context, this suggests that global clients may prefer particular expertise and experiences that would be recognized and promoted by the law firms serving them. In our research, we explore this possibility by analyzing the hiring preferences of law firms serving global clients as reflected in the credentials of their lawyers. We draw on a unique dataset comprised of information published by law firms in the form of professional profiles of their lawyers. The firms we analyze are competitors in the global market and include five elite Korean law firms and U.S.-based law firms with Korean-practices situated in their Hong Kong offices — a short airplane trip from Seoul. Our analysis provides insight into the credentials and expertise preferred by each group of firms. From this, we assess the ways in which the two groups of law firms value foreign legal education and law school reputation, as well as the interplay of globalization and gender.

The Association between Audit Partner Rotation and Audit Fees: Empirical Evidence from the Australian Market

SUMMARYWe examine the relation between audit partner rotation and audit fees for a sample of Australian firms from 2007 to 2010. We find a significant positive association between audit fees and partner rotation in the year of rotation. The association persists in the first year post rotation and to a lesser extent in the second year post rotation. Our analysis suggests that higher audit fees are associated with both mandatory and voluntary partner rotation. However, when we divide the sample into large global clients, mid-level clients, and small local clients, we find that mandatory and voluntary rotation are associated with higher audit fees for large global clients, while only voluntary rotation is associated with higher audit fees for small local clients. We do not find an association between partner rotation and audit fees for mid-level clients. Our study suggests that the extent to which firms are able to pass on the costs of partner rotation varies across different segments of the audit market.

Control in the multinational enterprise: The polycentric case of global professional service firms

This paper contributes to research on control in multinational enterprises (MNEs) by considering the case of global professional service firms (GPSFs). Drawing on fieldwork in four firms, it argues that GPSFs are seeking greater control over their subsidiaries in order to provide integrated cross-national services to global clients and, in the process, are becoming subject to a center-subsidiary tension similar to that observed in more conventional MNEs. However, and importantly, the paper also argues that the center-subsidiary tension operates differently in GPSFs. This is because central control in this particular context is pursued by not only headquarters but also subsidiaries based in core economies where major global clients are headquartered. Such polycentric control leads to the center-subsidiary tension expressing itself along not just the vertical (headquarters-subsidiary) axis but also the horizontal (inter-subsidiary) one and, in particular, along core-periphery lines. The research and managerial implications of these findings are discussed.

Strategies for sustaining the edge in offshore outsourcing of services: the case of India

PurposeOffshore outsourcing offers competitive advantages when goods and services are produced economically and with acceptable or superior quality by suppliers located outside a firm's home country. The purpose of this paper is to focus on India as a destination for offshore outsourcing of services and the challenges it faces in maintaining its leadership in this area. The paper discusses the growth of services outsourcing and the economic and environmental forces that have contributed to the outsourcing of high‐end services, also known as knowledge process outsourcing (KPO).Design/methodology/approachThis article surveys the literature of offshore outsourcing and identifies strategic drivers and options that can help India to grow and consolidate its position as an exporter of services and build long‐term competitive advantages in its relationships with global partners. To understand why nations gain competitive advantage in certain industries, Porter's “diamond” model is utilized as a broad framework for examining policies and national strategies that can sustain India's competitive advantage in outsourcing of knowledge‐based services. The paper discusses India's current and prospective assets and liabilities that correspond to the model's four components.FindingsThe article discusses India's competitive edge as a leading supplier of knowledge‐based services and proposes a model for sustaining this edge. The model proposes key policy steps to move from the current position (e.g. supplier of business process outsourcing services) to a role of knowledge leader by providing advanced value added services to global clients. This model suggests ways in which a supplier nation can gain leverage in the value chain.Research limitations/implicationsThe article is conceptual, not empirical. Public and corporate policy implications are presented to strengthen India's competitive advantages in outsourced services.Practical implicationsThe article presents a strategic roadmap with policy implications that can help move India up the value chain from being primarily a destination for low‐end business process outsourcing (BPO) to that of a co‐equal, high value‐adding partner or principal who offers knowledge leadership in the design and delivery of services for global markets.Originality/valueThe article discusses a nation's technical strengths, as well as cultural and infrastructure weaknesses, that can contribute to volatility as a global outsourcing leader. The article also presents strategies that can reduce a nation's vulnerabilities to competitive actions.

Need for sustainable global business model in software outsourcing

PurposeThe purpose of this paper is to study sustainability of the global business model of software outsourcing with perspective of Indian vendors.Design/methodology/approachIn order to obtain results as per the stated purpose, the authors have done an extensive literature review search in the e‐journals databases: ABI/INFORM Complete, EBSCO Business Source Complete, Emerald Management Xtra and Science Direct. Over and above these databases and journals, NASSCOM reports, survey and some books were also referred for literature review. Finally 59 references listed at the end of the paper were used for the stated purpose.FindingsThe paper studies trends in software industry and outsourcing models, which Indian vendors are offering to their global clients. Each model is evaluated analytically for its advantages and shortcomings subsequently the paper concludes by stating the need for a sustainable global business model in software outsourcing from Indian perspective.Research limitations/implicationsThe paper studies business of software at a global level and subsequently narrows its focus on the models being provided by the Indian vendors. It identifies need for a sustainable model to be used by the Indian vendors; the limitation of the paper is it concludes with the need identification and is from an Indian vendor perspective. The needs identified can be further used as a basis for hypothesis formulation, questionnaire design, data survey and analysis so that blue print of the proposed model can finally emerge, also the study can be expanded to include global vendors.Practical implicationsThe following paper analytically studies current trends in global business of software sourcing, and identifies pros and cons of the models adopted by Indian vendors. It identifies the need for a sustainable global business model for software outsourcing; in case the need is fulfilled it will definitely add value to India as a software sourcing destination and lead to more revenue generation which will eventually culminate into a large‐scale and long term economic and social impact. The study also has several research and public policy formulation implications.Originality/valueThe paper is completely original work of the authors where the value addition is clearly seen by studying the advantages and shortcomings of the existing models of software outsourcing adopted by Indian vendors and identifying the need for sustainability therein.

Changes in Audit Market Competition and the Big N Premium

SUMMARYWe respond to calls for research into the effect of the decline in the number of Big N firms on market power and consequential impact on competition (U.S. Department of the Treasury 2008; European Commission 2010; U.K. House of Lords 2011) by analyzing the change in Big N audit fee premium over the Big 6, Big 5, and Big 4 periods, and across different client segments. Using a large sample of Australian publicly listed companies over the years 1996–2007, we find that while premiums paid to Big N auditors have increased significantly for the Big 4 and Big 5 periods compared to the Big 6 period, the growth has not been shared equally across all client segments. In particular, while the largest global clients pay some of the highest premiums, the increase in premiums for this group in the Big 4 period has been lower than those experienced by other clients. We also observe that premiums paid to industry specialists have declined relative to the Big 6 period, but fee discounts offered to clients switching to a Big N auditor from a non-Big N auditor have increased. In all, we find that the premiums paid by Big N clients increased in line with consolidation in the number of Big N audit firms, but the impact varied across client segments.

Evolution of the Romanian post-trade environment: Embracing the new European post-trade realities

This paper focuses on how Depozitarul Central, the Romanian Central Securities Depository (CSD), is preparing to face the challenges, and benefit, from the opportunities of the new European post-trade reality. Depozitarul Central evolved from a product-delivery to a client-focused organisation. It deployed the most advanced regulations and technology, including SWIFT. The organisation offers choice between omnibus and beneficial owner accounts and provides innovative solutions to its domestic and global clients, acting as a gateway to efficient settlement and asset servicing in 18 foreign markets, in addition to the domestic market. All the links support free of payment (FoP), as well as delivery versus payment (DvP) settlements in 11 currencies. Depozitarul Central developed borrowing and lending services, based on the Global Master Securities Lending Agreement, including collateral management facilities. It is a pioneer in TARGET2 Securities and is part of the first group of depositories that will use this state-of-the-art pan-European settlement platform. Today the organisation is one of the leading CSDs in Central and Eastern Europe and continues to be a pioneer of securities services developments by working with its local and remote clients and providing them with efficient and seamless access and solutions for the future European environment.

Factors affecting the adoption of design for environment in Taiwan's electrical and electronic industries

This paper aims to apply an integrated method, combining Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Process (ANP) to find the crucial factors that affect the adoption of design for environment (DfE) in Taiwan's electric and electronic industries. Combining DEMATEL with ANP aids the discovery of each incentive's priority weights. Competitive advantage has the heaviest weight and, indeed, is a relatively important driving force behind the adoption of DfE. Managers' support, governmental regulations of target markets, and firms' ethical values also play focal roles in determining DfE adoption. This design system implies that the characteristics of Taiwan's electrical and electronic industry (the most important of which are strong export orientation and global clients' increasingly stringent 'green' requirements) are driving companies to adopt DfE in order to strengthen their competitive advantage.

From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment

This paper explores local and global dynamics underlying the development of knowledge services clusters, which we define as new geographic concentrations of technical talent and service providers offering upstream technical and knowledge-intensive business services to regional and global clients. Taking a co-evolutionary perspective on the development of knowledge services clusters in Latin America, based on data from the Offshoring Research Network (ORN), we find that cluster growth results from intersecting trajectories: the emergence of local talent pools and capabilities initially serving local and regional demand; broadening global search for talent and expertise by multinational corporations; and internationalization strategies of service providers competing to serve global clients. Findings suggest that increasing commoditization of knowledge services opens up windows of opportunity for new clusters, but also involves challenges for sustainable growth. Results may stimulate future research on global sourcing and cluster development.

Lawyer Discipline: What is Considered 'Effective Discipline?'

The regularity of lawyers crossing borders today to represent foreign and global clients does not occur without its challenges. Lawyers are frequently left in a cloud of ambiguity as they try to discern what is required of them in order to practice abroad. For example, foreign lawyers desiring to practice in the United States are required by the American Bar Association to be members of a legal profession that subjects its members to effective regulation and discipline. After reading this rule from the American Bar Association, foreign lawyers then struggle to figure out what is considered effective regulation and discipline. With a focus on disciplinary proceedings in particular, this paper tries to answer what is considered “effective discipline” or what “effective discipline” should mean. In order to answer these questions, this paper compares the recommended disciplinary proceedings of the United Nations, the Council of Europe, the Council of Bars and Law Societies of Europe, the International Bar Association, the selected international criminal tribunals, and the American Bar Association. The comparison of the recommended disciplinary schemes of these organizations and governmental bodies shows that while uniformity is nonexistent, there is at least a minimum threshold for what is considered “effective discipline.” In addition, the comparison reveals that there are two similar models of disciplinary systems that can fairly be labeled as representing a best practices approach for how to establish lawyer disciplinary proceedings. Although complete uniformity among lawyer discipline systems does not appear to have support among the United Nations, the Council of Europe, the Council of Bars and Law Societies of Europe, the International Bar Association, the selected international criminal tribunals, and the American Bar Association, a minimum threshold for “effective discipline” does provide some guidance for lawyers crossing borders.

Growing your HR brand

After many years, General Electric continues to have an advantaged position in attracting new customers, investors, and partners, and recruiting top candidates for employment (BusinessWeek 2009). Well-managed brands such as GE differentiate by promising and delivering value to customers and stakeholders. But, while brands develop slowly, they quickly erode if violated. Exxon Mobil’s reputation has still not fully recovered from the Valdez oil spill disaster and management’s perceived arrogance. While Shell and BP are among the best 100 global brands, Exxon Mobil is absent despite stronger performance (BusinessWeek 2009). As companies have brands, so do teams and individuals. This brief paper offers practical guidance to HR leaders and their teams on identifying their HR brand, assessing its clarity and quality, aligning practices, and making it stick. It is based on our consulting and executive educational work with a wide variety of global clients including AXA, British Airways, Deutsche Post / DHL, Duke Energy®, Getronics/KPN, Glaxo Smith Kline, ING, A.P. MollerMaersk, Mars, Nokia, Novartis, PepsiCo, Pfizer, Procter and Gamble, Teva Pharmaceuticals, Takeda Pharmaceuticals, Wal-Mart, and others.

Enhancing instructional design efficiency: Methodologies employed by instructional designers

AbstractInstructional systems design (ISD) has been frequently criticised as taking too long to implement, calling for a reduction in cycle time—the time that elapses between project initiation and delivery. While instructional design research has historically focused on increasing learner efficiencies, the study of what instructional designers do to increase efficiency during the design of instruction, including web‐based training, has not yet been fully examined. The purpose of this qualitative developmental study was to identify and understand the methodologies used by experienced instructional designers to increase the efficiency of the instructional design process. Data were gathered from 11 instructional designers working within two business and industry consulting firms that provide learning solutions to global clients. Results revealed 47 efficiency methodologies found within the four categories of design model, instructional design team member roles, instructional design processes and instructional design tools. Additionally, 14 supporting instructional designer competencies were found within the category of instructional designer knowledge, skills and attitudes.

Compensações financeiras obtidas por fornecedores de componentes premium em transações industriais

Este artigo investiga as compensações financeiras obtidas por fornecedores de componentes industriais de itens classificados como premium (produtos de alto valor agregado) ao atenderem às principais demandas de valor dos grandes compradores industriais. As compensações financeiras incluem aumento no preço e na fração do lote de compra (percentual do lote de compra destinado a cada fornecedor). O método de pesquisa foi o estudo de caso múltiplo. A pesquisa envolveu, de um lado, cinco clientes globais oriundos dos setores de siderurgia, bebidas e equipamentos, e de outro quatro fornecedores de componentes industriais: rolamentos especiais, subsistemas hidráulicos, subsistemas pneumáticos e equipamentos eletrônicos. A pesquisa investigou valores descritos na literatura para suprimentos industriais (produto, serviço e suprimento) e identificou que o valor produto é prioritário e os valores suprimento e serviços usualmente são considerados após a aprovação técnica do valor produto. A pesquisa também quantifica a influência da combinação desses valores em níveis de preços e fração do lote de compra. Os resultados auferidos sugerem questões para futuras pesquisas, as quais serão organizadas em forma de survey

No accounting for difference [global account management

Organisations wishing to deal with their truly global clients need a strategy that goes beyond the traditional servicing of international accounts. Global Account Management (GAM) is a technique that should be considered. While based on similar processes and tools, the challenges of Global Account Management go far beyond those of nationally based Key Account Management (KAM). Geography and time zones apart, there is the organisational and structural complexity of GAM. The supplier's nationally based organisations are likely to be built the way they are for very good reason: meeting local needs, not global ones.

Globalization and the advertising industry in China

The rapid recent growth in the size of the advertising market in China has been unprecedented, fulfilling the prediction that it will be second only to that of the United States by the Olympic year of 2008. Major Japanese and Western‐based global advertising agencies have been making their presence felt via joint‐venture arrangements with Chinese agencies since 1979, and now increasingly are serving not only their global clients, but working with large Chinese advertisers as well. This article traces recent developments in the advertising industry in China, with particular attention to the marketing strategies being pursued by global advertisers, and to the social, cultural and geographical barriers which they must overcome. Conversely, the analysis gives insight to the comparative advantages the Chinese advertisers and their agencies enjoy in this respect, although they also face challenges in establishing brands and otherwise transforming China into a harmonious nation of consumer‐citizens.

Globalisation Trends in Australia's Advertising Industry

This year's takeover of Australia's largest advertising agency, George Patterson Partners, by the British-based global group WPP is just the most recent and dramatic event in a longer-term trend towards globalisation and a complex concentration of ownership in the advertising business. Global advertising groups like WPP, along with their global advertiser clients, are seeking strategically to align the same advertiser with the same agency in each major national market: the phenomenon of ‘global alignment’. Australian agencies are necessarily drawn into the resulting process of consolidation, so much so that it becomes not merely difficult to distinguish between national and international ownership, but almost meaningless. At the same time, there is emerging a greater differentiation of functions amongst agencies, although often coordinated under the one corporate umbrella. Certain agencies are specialising in media buying — that is, the tactical purchase of advertising time and space on behalf of clients — while ‘creative’ agencies provide the content to fill them. Others again are positioning themselves as experts in the burgeoning field of internet advertising. Other current trends include the breakdown of the once-strict boundaries between clients, agencies and media. Advertisers are setting up their own in-house agencies, agencies have acquired their own media outlets, and media are carrying ‘news’ and ‘entertainment’ content which has been prepared by agencies for their clients. Thus even the boundary between advertising and editorial or program content is also breaking down. This paper provides an overview of all these trends, as advertising scrambles to secure its place in the contemporary era of globalisation in a deregulated, post-mass media world.