Quality Models in eSourcingweb.mit.edu/sis07/www/slaughter_slides.pdf · Quality Models in eSourcing: The Effect of Knowledge Transfer Factors on Assimilation Sandra Slaughter, Bryon

April 26, 2007 © Slaughter, Balint, Forman, Hyder and Paulk 1

Quality Models in eSourcing:The Effect of Knowledge Transfer Factors on Assimilation

Sandra Slaughter, Bryon Balint, and Chris FormanTepper School of Business, Carnegie Mellon University

Elaine Hyder and Mark PaulkIT Services Qualification Center (ITSqc), Carnegie Mellon University


What is eSourcing?


Types of eSourcingrelationships


Research Motivation

Sourcing relationships are often fraught withproblems due to poor service definition,poor management, etc.

Capability models can provide a common setof best practices, methods or technologiesfor service delivery, improvingperformance


Why Best Practice Frameworks?

“Best” practice – a “good” management ortechnical practice consistently demonstratedto significantly improve the bottom line.

Best practice frameworks – models andstandards comprised of generally acceptedbest practices.

Best practices are usually considereduniversally applicable.


Research Motivation

However, the adoption of best practiceframeworks presents significant costs tofirms

Initial adoptionAssimilation into everyday use


Research Questions

What factors influence knowledge transferduring the assimilation of an eSourcingcapability model?

How does the transfer of knowledge affectthe timeliness of the assimilation of aneSourcing capability model?

How do the outcomes from one assimilationstage affect the outcomes of a subsequentstage?


Summary of Key Findings

Implementation times were reduced when:Team members were more experiencedPersonnel rotated across teamsPractices were compatible with existing methodologies like CMMI

or SW-CMM

Knowledge transfer characteristics directly affectedinitial implementation times but not likelihood offull model assimilation

Practices with high and low implementation timeswere more likely to receive an initial “Satisfied”assessment


Knowledge Transfer andAssimilation

Organizations must overcome initial knowledgebarriers before they will adopt innovations(Attewell, 1992)

Knowledge that is transferred must be learned andapplied to be effective (Ko et al, 2005)

As organizations learn more, they will more fullyassimilate innovations into everyday use(Fichman & Kemerer, 1997)


Knowledge Transfer Framework(Szulansky 1996)

Characteristics of KnowledgeExplicitness / Complexity

Characteristics of SourcePerceived competence based on experience

Characteristics of RecipientPrior experience with quality programs

Characteristics of ContextMechanisms: Personnel Transfer, Knowledge Management

Systems


KnowledgeExplicitness

KnowledgeComplexity

Prior QualityPrograms

SourceCredibility

Time to Implement

CertificationSuccess

Cha

ract

eris

tics

of K

now

ledg

eC

hara

cter

istic

s of

Sou

rce

Cha

ract

eris

tics

of R

ecip

ient

KnowledgeTransfer

Mechanisms

Cha

ract

eris

tics

of C

onte

xt

People-Based

Mechanisms

KnowledgeManagement

Systems

Theoretical Framework


Assimilation Stages

There are different stages of assimilation(e.g., Cooper & Zmud 1990)

Little existing research examines thetransitions between stages within anorganization and the influence that onestage may have on a subsequent one


Time to Implement

Probability ofCertificationSuccess

Hasty;implementationnot thoroughenough

Implementationdifficulties indicate organizationalproblems

Hypothesized RelationshipBetween Assimilation Stages


Research SettingA major eSourcing Service Provider

Global management consulting, technologyservices and outsourcing company

Earned more than U.S. $16 billion net revenues in2006

Employs almost 150,000 employees in 50countries

Covers more than 30 industries and 75 countries


Research ContextService Provider Implemented an eSourcingCapability Model

eSourcing CapabilityModel for ServiceProviders (eSCM-SP)Developed by Carnegie

Mellon University and aconsortium of companies

84 best practicesassociated with IT-enabled sourcing

Covers entire sourcing life-cycle


Research Method, Data andAnalysis

Field Study of eSCP-SP implementation:74 Separate Practices8 implementation teams2 implementations (Human Resources, Financial Services)Implementations over a 2 year time period

Data:Implementation and assessment information by team by

practice from project management archivesInterviews with key informants

Analyses:Implementation effort (Linear Regression)Probability of Certification (Standard Probit Regression)


Results – Time to ImplementAn increase in average team member experience in practice

implementation of 5 days reduces average implementationtime by 4.4% (Financial Services)

Rotation of implementation resources across teams reducedaverage implementation times by 73% (Financial Services)

Compatibility with eSCM-SP Practice and SW-CMM or CMMIreduces average practice implementation times by 16.1%(Financial Services)

Teams that shared members for implementation of Practicescontaining more tacit knowledge reduced averageimplementation times by 10% (HR)

Counter to expectations, knowledge explicitness and KMSusage slightly increased implementation times


Key Results from Phase 1:The importance of experience

0

10

20

30

40

50

60

70

Average Project Exp CMMI Exp Rotating

TeamMembers

ImplementationTime


Results - Certification

None of the knowledge management antecedentvariables were significantly related to certificationoutcomes

Mediation check demonstrates that implementationtime partially mediates the effect of the otherindependent variables on certification success

Counterintuitive relationship betweenimplementation time and certification success


Key Results from Phase 1:Unexpected relationship between practiceimplementation time and certification success


Future Work

Further understanding of differencesbetween Financial Services and HumanResource implementations

Further investigation into relationshipbetween implementation stages

Analyze performance impacts of eSCM-SPadoption in Financial Services and HumanResources

Documents

Quality Models in eSourcingweb.mit.edu/sis07/www/slaughter_slides.pdf · Quality Models in eSourcing: The Effect of Knowledge Transfer Factors on Assimilation Sandra Slaughter, Bryon