How Do IT Outsourcing Vendors Respond to Shocks in Client Demand? A Resource Dependence Perspective

Surviving the hectic early phase of the COVID-19 pandemic: a qualitative study to the supply chain strategies of food service firms in times of a crisis

Purpose

The COVID-19 pandemic and the subsequent lockdown have hit the food service industry very hard. The COVID-19 outbreak has created a sharp downturn for firms in the food service industry, compelling actors across the whole food service supply chain to rethink their strategies. The purpose of this paper is to document the impact of COVID-19 on the food service supply chain, as well as to identify crisis management strategies food service firms use during the hectic early phase of the COVID-19 pandemic to survive the current and prepare for future pandemics.

Design/methodology/approach

We performed a qualitative descriptive study using 21 semi-structured interviews with actors across the food service supply chain (i.e. farmers, wholesalers and food service providers). Data were collected to shed light on food service firms' decision making during the hectic early phase of the COVID-19 pandemic to uncover various crisis management strategies used.

Findings

By integrating the disaster and crisis pyramid and resilience theory, four core crisis management strategies to respond to the COVID-19 pandemic are conceptualized, i.e. (1) managing resources, (2) diversifying strategically, (3) prioritizing long-term outcomes and (4) bonding socially.

Originality/value

The theoretical contributions include documenting the performance impact of the COVID-19 pandemic on the food service supply chain and exploring crisis management strategies food service firms employed during the hectic early phase of the COVID-19 pandemic. Thus, functioning and survival during a pandemic, an emerging field in literature, are central to this study. Additionally, while recent research suggests that integrating crisis management and resilience literature may provide a more complete understanding of the organization–crisis relationship, these literature streams mainly developed in isolation. By integrating the literature streams of crisis management and resilience and applying these theories to the COVID-19 crisis, our study provides specific managerial guidelines.

A strategic conflict analysis in IT outsourcing using the graph model for conflict resolution

Purpose

The purpose of this paper is to propose a strategic conflict analysis, based on the graph model for conflict resolution (GMCR), that is applied to information technology outsourcing (ITO) in a real-world software development and implementation process in Brazil.

Design/methodology/approach

Because the idea of this study is to answer “why” the ITO conflicts occur and “how” they can be avoided, the case study methodology was adopted. The software GMCR II was used to analyze the interactions between an IT vendor and an IT client.

Findings

The results suggest that a lack of relational governance is a critical issue that could be handled to improve the interaction between those involved.

Research limitations/implications

The main results are restricted to the case study and cannot be generalized. Moreover, a specific limitation of this paper pertains to the use of the GMCR and the consequent difficulty for IT vendors and IT clients to work with a large number of actions and to set preferences for several states of conflict.

Practical implications

The strategic analysis of outsourcing conflicts provides a holistic view of the current situation that may assist the client and vendor in future decisions and identify guidelines to ensure successful ITO. Therefore, this paper provides an effective guide for clients and vendors to better manage conflicts and establish a contingency vision to avoid such disputes.

Originality/value

The ITO conflict is analyzed using the GMCR, considering both perspectives of the outsourcing process (vendors and clients).

How do IT outsourcing vendors develop capabilities? An organizational ambidexterity perspective on a multi-case study

Vendor capabilities are an important research stream in the IT outsourcing literature. The extant studies have generated rich findings on how vendors develop capabilities, but these findings have mainly been based on the condition of vendors improving their existing business. How vendors develop capabilities to move up the value chain has received little prior research attention. A key challenge for vendors in moving up the value chain is the development of new capabilities while maintaining the existing ones. This challenge is consistent with achieving exploration and exploitation in organizational ambidexterity. Hence, we adopt organizational ambidexterity as our theoretical lens. By conducting a case study on four IT outsourcing vendors in China, we identify four classifications for achieving ambidexterity in capability development and the context for each classification. These classifications are based on combinations of different structural arrangements and processes for achieving ambidexterity. Our study contributes to the research on IT outsourcing vendor capabilities by improving our understanding of capability development in vendors moving up the value chain. It also contributes to the organizational ambidexterity literature by identifying the factors that influence the choices of different structural arrangements and processes.

Supply chains under resource pressure

Purpose

The purpose of this paper is to investigate the implications of supply chain strategies that manufacturing companies can use to minimise or overcome natural resource scarcity, and ultimately improve resource efficiency and achieve competitive advantage. The relationship between resource efficiency and competitive advantage is also explored.

Design/methodology/approach

The proposed research model draws on resource dependence theory. Data were collected from 183 logistics, purchasing, sustainability and supply chain managers from various manufacturing companies and analysed by applying the partial least squares structural equation modelling technique.

Findings

The results indicate that both buffering and bridging strategies improve resource efficiency; however, only bridging strategies seem to lead to firm’s competitive advantage in terms of ownership and accessibility to resources. The relationship between resource efficiency and competitive advantage is not supported.

Research limitations/implications

Future research could confirm the robustness of these findings by using a larger sample size and taking into account other supply chain members.

Practical implications

This research provides guidance to managers faced with the growing risk of resource scarcity to achieve a resource efficient supply chain and an advantage over competitors.

Originality/value

Studies have explored the appropriate strategies for minimising dependencies caused by the scarcity of natural resources in the field of supply chain management; however, there is limited empirical work on investigating the impact of these strategies on resource efficiency and competitive advantage.

Supply chain strategies in an era of natural resource scarcity

Purpose

The purpose of this paper is to explore the implications of natural resource scarcity (NRS) for companies’ supply chain strategies.

Design/methodology/approach

Drawing on the resource dependence theory (RDT), a conceptual model is developed and validated through the means of exploratory research. The empirical work includes the assessment of qualitative data collected via 22 interviews representing six large multinational companies from the manufacturing sector.

Findings

When the resources are scarce and vitally important, companies use buffering strategies. Buffering and bridging strategies are preferred when there are a few alternative suppliers for the specific resource and when there is limited access to scarce natural resources.

Research limitations/implications

The research focuses on large multinational manufacturing companies so results may not be generalised to other sectors and to small- and medium-sized firms. Future research needs to examine the implications of NRS for organisational performance.

Practical implications

This research provides direction to manufacturing companies for adopting the best supply chain strategy to cope with NRS.

Originality/value

This paper adds to the body of knowledge by providing new data and empirical insights into the issue of NRS in supply chains. The RDT has not been previously employed in this context. Past studies are mainly conceptual and, thus, the value of this paper comes from using a qualitative approach on gaining in-depth insights into supply chain-related NRS strategies and its antecedents.