Mapping SOA and Outsourcing on NEBIC: A Dynamic Capabilities Perspective Approach
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 33093
Mapping SOA and Outsourcing on NEBIC: A Dynamic Capabilities Perspective Approach

Authors: Benazeer Md. Shahzada, Verelst Jan, Van Grembergen Wim, Mannaert Herwig

Abstract:

This article is an extension and a practical application approach of Wheeler-s NEBIC theory (Net Enabled Business Innovation Cycle). NEBIC theory is a new approach in IS research and can be used for dynamic environment related to new technology. Firms can follow the market changes rapidly with support of the IT resources. Flexible firms adapt their market strategies, and respond more quickly to customers changing behaviors. When every leading firm in an industry has access to the same IT resources, the way that these IT resources are managed will determine the competitive advantages or disadvantages of firm. From Dynamic Capabilities Perspective and from newly introduced NEBIC theory by Wheeler, we know that only IT resources cannot deliver customer value but good configuration of those resources can guarantee customer value by choosing the right emerging technology, grasping the economic opportunities through business innovation and growth. We found evidences in literature that SOA (Service Oriented Architecture) is a promising emerging technology which can deliver the desired economic opportunity through modularity, flexibility and loosecoupling. SOA can also help firms to connect in network which can open a new window of opportunity to collaborate in innovation and right kind of outsourcing

Keywords: Absorptive capacity, Dynamic Capability, Netenabled business innovation cycle, Service oriented architecture.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1062022

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1784

References:


[1] Eisenhardt, K.M. "Making fast strategic decisions in high velocity environments", Academy of Management Journal, vol. 32 , no 3, 1989, pp. 543-76.
[2] D-Aveni, R. A. "Hyper-competition", The Free Press, New York, 1994.
[3] Palie,S., John, B., and Abhishek, G. "Towards technological rules for designing innovation networks: a dynamic capabilities view", International Journal of Operations & Production Management, vol. 27, no. 10, 2007, pp. 1069-1092.
[4] Bartlett, C.A., and Ghoshal, S. "Building competitive advantage through people", MIT Sloan Management Review, vol. 43, no. 2, 2002, pp. 34- 41.
[5] Zahra, S.A., and Nielsen, A.P. "Sources of capabilities, integration and technology commercialization", Strategic Management Journal, vol. 23, no. 5, 2002, pp. 377-398.
[6] Lovas, B., and Ghoshal, S. "Strategy as guided evolution", Strategic Management Journal, vol. 21, no. 9, 2000, pp. 875-896.
[7] Markides, C., and Geroski, P. "Teaching elephants to dance and other silly ideas", Business Strategy Review, vol. 14, no. 3, 2003, pp. 49-53.
[8] Bessant, J. "Managing Innovation: Moving Beyond the Steady State", Inaugural Lecture, 2003.
[9] Bessant, J. "High Involvement Innovation", Published by Wiley in April, 2003.
[10] Teece, D.J., Pisano, G.P., and Shuen, A. "Dynamic capabilities and strategic management", Strategic Management Journal, vol. 18, no. 7, 1997, pp. 509-533.
[11] Eisenhardt, K.M., and Martin, J.A. "Dynamics capabilities: what are they?", Strategic Management Journal, vol. 21 no. 10 &11, 2000, pp. 1105-1121.
[12] Priem, R.L., and Butler, J.E. "Is the resource-based ÔÇÿview- a useful perspective for strategic management research"?, Academy of Management Review, vol. 26, no. 1, 2001, pp. 22-40.
[13] Priem, R.L., and Butler, J.E. ÔÇ×Tautology in the resource-based view and the implications of externally determined resource value: further comments", Academy of Management Review, vol. 26, no. 1, 2001, pp. 57-66.
[14] Pisano, G.P. "The Development Factory: Unlocking the Potential of Process Innovation", Harvard Business School Press, Cambridge, MA, published 12th September, 1996.
[15] George, G., Zahra, S.A., and Wood, D.R. "The effects of businessuniversity alliances on innovative output and financial performance: a study of publicly traded biotechnology companies", Journal of Business Venturing, vol. 17, no. 6, 2002, pp. 577-609.
[16] Hagedoorn, J., and Duysters, G. "External sources of innovative capabilities: the preference for strategic alliances or mergers and acquisitions", Journal of Management Studies, vol. 39, no. 2, 2002, pp. 167-188.
[17] Cohen, M.D., and Levinthal, D.A. "Absorptive capacity: a new perspective on learning and innovation", Administrative Science Quarterly, vol. 35, no. 1, 1990, pp. 128-152.
[18] Pouder, R., and St. John, C.H. "Hot Spots and Blind Spots: Geographical Clusters of Firms and Innovation", Academy of Management Journal, vol. 21, no. 4, 1996, pp. 1192-1225.
[19] Brock, G. "The U.S. Computer Industry", Cambridge, MA: Ballinger, 1975.
[20] Peck, M. "Inventions in the postwar aluminum industry". In R.R. Nelson (ed.) The rate and Direction of Inventive Activity. Princeton University Press, 1962.
[21] Rosenberg, N., and Steinmuller, W.E. "Why are Americans Such Poor Imitators"?, American Economic Review, vol. 78, no. 2, 1988, pp. 229- 234.
[22] Saxenian, A. "Regional Networks and the Resurgence of Silicon Valley", California Management Review, vol. 33, no. 1, 1990, pp. 89- 112.
[23] March, J., and Simon, H. "Organizations", New York: Wiley, 1958.
[24] Cohen, M.D., and Levinthal, D.A. "Absorptive capacity: a new perspective on learning and innovation", Administrative Science Quarterly, vol. 35, no. 1, 1990, pp. 128-152.
[25] Zahra, S.A., and George G. "The Net-Enabled Business Innovation Cycle and the evolution of Dynamic Capabilities", Information System Research, vol. 13, no. 2, 2002, pp. 147-150.
[26] Wheeler, B.C. "NEBIC: a dynamic capability series for assessing netenablement", Information Systems Research, vol. 13, no. 2, 2002, pp. 125-146.
[27] Clark, C., Cavanaugh, N., Brown, C. V. and Sambamurthy, V. "Building change-readiness capabilities in the IS organization: Insights from the Bell .Atlantic experience", MIS Quarterly, vol. 21, no. 4, 1997, pp. 425-455.
[28] Bharadwaj, A., Sambamurthy, V., and Zmud R.W. "IT capabilities: A multidimensional operationalization and assessment of links with firm performance", Working paper, University of Maryland, College Park, U.S. 2000.
[29] Christopher Koch, "A New Blueprint for the Enterprise", CIO Magazine, Mar 1, 2005.
[30] Benazeer, M. S., Verelst, J., Vangrembergen, W., and Mannaert, H. "Aligning Technology with Business: An Analysis of the Impact of SOA on Outsourcing," Journal of Theoretical and applied Information Technology, vol. 4, no. 3, pp. 244-252.
[31] Brocke, J.V., and Lindner, M.A. "Service Portfolio Measurement ÔÇö A Framework for Evaluating the Financial Consequences of Out-tasking Decisions", ICSOC'04, November 15-19, New York, USA.
[32] Davenport T.H. "The coming commoditization of processes", Harvard Business Review, vol. 83, no. 6, 2005, pp. 100-108.
[33] Feenstra, R. "Integration of trade and disintegration of production in the global economy", Journal of Economic Perspectives, vol. 12, no. 4, 1998, pp. 31-50.
[34] Jaffee, D. "Globalization, off-shoring, and economic convergence: a synthesis". In: Understanding Global Outsourcing Conference, Stern School of Business, December 10, 2004, New York.
[35] Information week Feb.15, 2008
[36] Farrell, D. "Off-shoring: Is it a Win-Win Game"? McKinsey Global Institute Report, 2003.
[37] The Economist, "India-s Growing Strength in Innovation", issue April 1, 2004.
[38] Tansey, B. "Testing the Offshore Waters; Biotech Firms Experiment with Moving Work Overseas", The San Francisco Chronicle, 18th April, 2004.
[39] Thibodeau, P., & Lemon, S. "R & D Starts to Move Offshore", Computerworld, issue March1, 2004.
[40] Foremski, T. "Intel looks to Russia to build R & D", The Financial Times, May, 25, 2004.
[41] Borzo, J. "Scattering the Seeds of Invention: The Globalization of Research and Development", The Economist Intelligence Unit, white paper, issue September, 2004.
[42] Venkatraman, N. "Offshoring without guilt", MIT Sloan Management Review, vol. 45, no. 3, 2004, pp. 14-16.
[43] Dunning, J. "Reappraising the eclectic paradigm in an age of alliance capitalism", Journal of International Business Studies vol. 26, no. 3, 1995, pp. 461-491.
[44] Bartlett, C. A., and Ghoshal, S. "Managing innovation in the transnational corporation", In: Bartlett, C., Doz, Y. and Hedlund, G. (Eds.), Managing the Global Firm, Routledge, London, 1990.
[45] Hakanson, L. "International decentralization of R&DÔÇöthe organizational changes". In: Bartlett, C., Doz, Y., Hedlund, G. (Eds.), Managing the Global Firm. Routledge, London, UK, 1990.
[46] Florida, R. "The globalization of R&D: results of a survey of foreignaffiliated R & D laboratories in the USA", Research Policy, vol. 26, no. 1, 1997, pp. 85-103.
[47] Zander, I. "The formation of international innovation networks in the multinational corporation: an evolutionary perspective", Industrial and Corporate Change, vol. 11, no. 2, 2002, pp. 327-353.
[48] Doz, Y., Santos, J., and Williamson, P. "From Global to Meta-national: How Companies Win in the Knowledge Economy", Harvard Business School Press, Boston, MA, 2001.
[49] Zhaohua, W., & Jianhua, Y. "Research on operation modes of outsourcing innovation network", Proceedings of the Fifth International Symposium on Management of Technology, vol. 1 and 2, pp. 310-314 Published: 2007.
[50] Quinn, J. "Outsourcing innovation: the new engine of growth", Sloan Management Review, vol. 41, no. 4, 2000, pp. 13-28.
[51] Chapman, R., and Corso, M. "From continuous improvement to collaborative innovation: the next challenge in supply chain management", Production Planning & Control, vol. 16, no. 4, 2005, pp. 339-344.
[52] Quelin, B., and Duhamel, F. "Bringing together strategic outsourcing and corporate strategy: outsourcing motives and risks", European Management Journal, vol. 21, no. 5, 2003, pp. 647-661.
[53] Quinn, J. (1999). Strategic outsourcing: leveraging knowledge capabilities, Sloan Management Review, vol. 40, no. 4, 1999, pp. 9-21.
[54] Sabi, R., and Hu, S. "Outsourcing innovation: An overview of the problems and possible solutions", Proceedings of the 2nd International Conference on Product Innovation Management, and The 3rd International Conference on Value Engineering, published in 2007, pp. 319-323.
[55] Catherine, L. W., and Pervaiz, K.A. "Dynamic Capabilities: A review and research agenda", International Journal of Management Reviews, vol. 9, no. 1, 2007, pp. 31-51.
[56] Aron, R., and Singh, J. "Getting off-shoring right" Harvard Business Review, vol. 83, no. 12, 2005, pp. 135-147.
[57] Barthelemy, J. "The seven deadly sins of outsourcing", Academy of Management Executive, vol. 17, no. 2, 2003, pp. 87-99.
[58] Khong, K. "The perceived impact of successful outsourcing on customer service management", Supply Chain Management-an International Journal, vol. 10, no. 5, 2005, pp. 402-411.
[59] Farrell, D. "Off-shoring: value creation through economic change", Journal of Management Studies, vol. 42, no. 3, 2005, pp. 675-683.
[60] Behravesh, N. "The Comprehensive Impact of Offshore Software and IT Services Outsourcing on the U.S. Economy and the IT Industry", Global Insight (USA) Inc., Lexington, MA, 2004.
[61] Mann, C. L. "Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth", Institute for International Economics, IIE publications, N┬░ PB 03-11, December, 3-11, 2003.
[62] Smith, K. G., Grimm, C.M., and Gannon, M. J. "Organizational Information Processing, Competitive responses and Performance in the Domestic Airline Industry", Academy of Management Journal vol. 34, no. 1, 1991, pp. 60-85.