Deviations of Governance In IT Multi-Sourcing: A Case Study

IT outsourcing (ITO) refers to the shift of IT/IS activities from internal to external of an organization. In prior research, the governance of ITO is recognized with persistent strategic importance for practice, because it is tightly related to ITO success. Under the rapid transformation of global market, the evolving practice of ITO requires updated knowledge on effective governance. However, research on ITO governance is still under developed due to the lack of integrated theoretical frameworks and the variety of empirical settings besides dyadic client-vendor relationships. Especially, as multi-sourcing has become an increasingly common practice in ITO, its new governance challenges must be attended by both ITO researchers and practitioners. To address this research gap, this study aims to understand multi-sourcing governance with an integrated theoretical framework incorporating both governance structure and governance mechanisms. The focus is on the emerging deviations among formal, perceived and practiced governance. With an interpretive perspective, a single case study is conducted with mixed methods of Social Network Analysis (SNA) and qualitative inquiries. The empirical setting embraces one client firm and its two IT suppliers for IT infrastructure services. The empirical material is analyzed at three levels: within one supplier firm, between the client and one supplier, and among all three firms. Empirical evidences, at all levels, illustrate various deviations in governance mechanisms, with which emerging governance structures are shaped. This dissertation contributes to the understanding of ITO governance in three domains: the governance of ITO in general, the governance of multi-sourcing in particular, and research methodology. For ITO governance in general, this study has identified two research strands of governance structure and governance mechanisms, and integrated both concepts under a unified framework. The composition of four research papers contributes to multi-sourcing research by illustrating the benefits of zooming in and out across the multilateral relationships with different aspects and scopes. Methodologically, the viability and benefit of mixed-method is illustrated and confirmed for both researchers and practitioners.

Adapting to a team of host culture domination: Experiences of Finnish and British expatriates

International teams are permanent features of the global market, and multinational companies cannot ignore them. This thesis discusses an individual’s adaptation to a team of host culture domination by looking at the experiences of Finnish and British expatriates. The research question is: How does a foreigner adapt to a Finnish-British team where all the other members are from the local culture? The theoretical framework of this thesis consists of theories on multicultural teamwork and Finnish and British cultures. Based on theories, the impact of diversity on teamwork and whether it improves or deteriorates a team’s performance is unclear but the idea of multicultural teams is not just to live with cultural differences but to use and benefit of them. The main differences between Finnish and British cultures are in management styles and level of hierarchy. Still, these two cultures seem to be very similar. This is a qualitative study and expert interviews were used as a method for data collection. The results of the empirical research showed that Finns and Brits have differences in decision-making, level of hierarchy and communication. None of the informants saw the challenges that they have faced to result from being the only representative of a foreign culture – they only perceived them resulting from the characteristics of the host culture. In addition, all the informants had to change their habits and behaviour in the host culture in order to fit into the new culture and to become a part of the team. However, all the informants saw advantages in cross-cultural teams. Based on this thesis, team members from the host culture do not value cultural differences and they seem to be an issue only for the team member from the minority culture. It seems that a Finn or a Brit adapts to a Finnish-British team where the host culture dominates by changing their own behaviour in order to become a part of the team – even though people often see their own culture’s methods and habits as the right ones. Finnish and British cultures seem to be similar in fundamental issues like views and attitudes, which could mean that it is fairly easy for a Finn to get used to working in a British team and vice versa. Even though there are many challenges in cross-cultural and bi-cultural teams, there are even more advantages.