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  • 1.
    Abrahamsson, Mats
    et al.
    Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology.
    Malmgren, Mike
    Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology.
    Andersson, Dan
    Chalmers.
    Inside the Core: Managing risks in Business Critical Outsourcing2011In: Proceedings of the 20th Annual IPSERA Conference, Vision 20/20 – Preparing Today for Tomorrow’s Challenges / [ed] F. Rozemeijer, M. Wetzels, L. Quintens, 2011, p. 1092-1101Conference paper (Refereed)
    Abstract [en]

    Organizations are increasingly outsourcing business critical activities, which increases the risk of substantial negative impact on the financial and strategic business performance. The aim of this paper is to show how outsourcer and supplier seek to mitigate the risks during the negotiations and the ongoing operations of the outsourced activities. The conclusion is that risk mitigating dimensions are directional and operates at different organizational levels, and secondly, that the dimension operates sequentially as a means to mitigate performance and relational risks. It is also concluded that goodwill trust and a cooperative stance have substantial impact on the success of the outsourcing.

  • 2.
    Abrahamsson, Mats
    et al.
    Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology.
    Malmgren, Mike
    Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology.
    Andersson, Dan
    Chalmers.
    Managing risk in complex and business critical outsourcing of services2011In: Proceedings of 18th International Annual Conference of the European Operations Management Association. EurOMA, 2011Conference paper (Refereed)
    Abstract [en]

    Over the past two decades the phenomenon of outsourcing of resources and activities has emerged as an important trend in a wide range of organizations and many companies are today outsourcing complex and business critical resources and activities. This increase in business criticality also increases the risk of substantial and negative impact on the financial and strategic performance. The proposition is that business critical outsourcing is approached with a joint risk perspective and that an understanding of the decision process is essential for success. Further, it is important to view outsourcing as an ongoing process with a number of key stages.

  • 3.
    Collins, Josh
    et al.
    Healthcare Locums, London, UK.
    Malmgren, Mike
    Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology. Ashridge, UK.
    Sandberg, Erik
    Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology.
    Strategic Change through Dynamic Capabilities: The response to the market entry of low-cost airlines2013In: 360°, the Ashridge Journal, no SummerArticle in journal (Other academic)
    Abstract [en]

    The entrance of low-cost passenger airlines into the market has created a new competitive landscape. 

    Josh Collins, Mike Malmgren and Erik Sandberg describe how Dynamic Capabilities as a strategic framework explains the actions taken by different airlines.

  • 4. Order onlineBuy this publication >>
    Malmgren, Mike
    Linköping University, Department of Management and Engineering. Linköping University, The Institute of Technology.
    Managing Risks in Business Critical Outsourcing: A Perspective from the Outsourcer and the Supplier2010Doctoral thesis, monograph (Other academic)
    Abstract [en]

    Companies are increasingly outsourcing business critical activities to suppliers of outsourcing services. As the complexity and business  criticality of the outsourced activities increases, the risk of poor performance increases. This thesis studies large scale outsourcing in the telecom industry where a recent trend is to transfer the development, operation and maintenance of the telecom infrastructure to telecom equipment suppliers. The significance of this type of outsourcing is that the outsourced activity is the revenue generating part of the telecom operators business.

    Part 1 discusses the purpose and research questions followed by the theoretical underpinning in the research. The research strategy is to study the outsourcing relationship in three distinct stages of its development and the theoretical underpinning applies transaction costs analysis in the Scoping & Search stage and Das &Teng’s (2001) framework of trust and control for managing risks in the Negotiation and Transition stages. This design is in response to calls for a more detailed understanding of how organizations manage risks, it therefore takes the perspective of both the outsourcer and the supplier in the research.

    Part 2 is a multiple case study of telecom operators in Holland, Sweden and Australia where the supplier in all three cases is Ericsson Global Services organization. The study is further supplemented by mini-cases of large scale IS/IT infrastructure outsourcing.

    Part 3 has three main parts. Firstly, a cross case analysis of the cases in Part 2; secondly, a discussion of the findings linked to the research questions resulting in a set of propositions. The third and final part covers additional insights and learnings from studying business critical outsourcing and suggestions for further research.

    The main contributions in the research can be summarised as:

    • Physical asset specificity follows transaction costs logic, however human asset specificity is largely ignored by both outsourcer and supplier
    • Business critical outsourcing by its nature faces a limited market for capable suppliers. This results in single-source negotiations followed by a cooperative stance and open book negotiations.
    • Das & Teng’s (2001) framework for management of risks has been found to have specific directions, some bi-directional and others uni-directional. Furthermore, different dimensions in the framework operate at different managerial levels. Goodwill trust-building operate at the corporate executive level, competence trust-building, output and behavioural control at the level of the negotiation team, and the research indicates that the social control dimension is not applied in business critical outsourcing negotiations.
    • A further finding is that goodwill trust-building precedes all other dimensions of trust and control, and is a pre-requisite for establishing a cooperative stance in the negotiations.
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    Managing Risks in Business Critical Outsourcing : A Perspective from the Outsourcer and the Supplier
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