Enabling innovation in information technology outsourcing : an empirical study

Information technology outsourcing has become a pervasive and important phenomenon in business organizations and there is substantial evidence about its benefits and pitfalls. Initially, firms used outsourcing as a way to lower costs, gain access to expertise and focus on core activities. Recently, there is a shift in focus and more firms are outsourcing to attain innovative products and services. However, current research is still unclear about how innovation can be achieved through outsourcing. Drawing predominantly from the dynamic capability theory, the objective of this paper is to explore how absorptive capacity unfolds as a process within and between firms when client firms outsource their information technology services with expectations of innovation generation. In this paper, we propose a research model that links absorptive capacity to innovation generation. We draw on three case studies to focus on how absorptive capacity, as a process, impacts innovation generation. Results show that assimilation and transformation stages are critical in generating radical innovation while acquisition and exploitation play a key role in incremental innovation. The implications of these findings for both researchers and practitioners are discussed.

Learning and concurrent engineering in the development of a high technology product/service system

This paper explores project management techniques that can support the development of novel product-service systems. Some observations from the development of an airborne earth properties measurement system are provided. The intellectual property and the data this system could potentially deliver was more important than the potential commercial value of the product itself. What was sought was a complete business service solution. A concurrent engineering approach was implemented linking both product development and survey data/analysis services. The blend of product and service was integrated using a function modeling technique. It was observed that the implementation of some functions required radical innovation whilst others could be implemented through incremental improvements to current practice. It is suggested in the paper that adapting production learning curve concepts that reflect the relative degrees of uncertainty involved in individual subsystems can enhance project management forecasting practice © 2013 The Authors and IOS Press.

The use of control systems in new product development innovation : advancing the 'help or hinder' debate

New Product Development (NPD) innovation is a critical activity in the current economic environment. In order to manage their NPD innovation projects, firms use Management Controls Systems (MCS). However, the effect that these systems have on NPD innovation is not clear. One stream of research suggests that MCS help NPD innovation while another stream suggests MCS hinder NPD innovation. Past research has shown that the role and style of MCS used may offer explanations on why MCS can both help and hinder NPD innovation. This paper adds another explanation by examining the relationship between three models (divisional, activity/decision and conversion/response) of a commonly used MCS, known as the Stage-Gate Process1 in the NPD innovation literature, and three types of NPD innovation projects (incremental, semi-radical and radical). The insights from an ethnomethodology informed field study are used to understand how and why the firms may use a different MCS (Stage-Gate Process models) for different NPD innovation project types.

Does privatisation drive innovation? Business model innovation through stakeholder viewpoints: the case of Sydney Airport 10 years post-privatisation

Broad economic and social reform, rapid technological change and increasing global competition have meant that organisations must consider all aspects of their business model in order to successfully create and capture ongoing customer value. In this study it is proposed that business model innovation must always consider and incorporate the symbiotic and interdependent relationship that stakeholders have with an organisation. One particular aspect of economic reform, privatisation, has become an important driver of economic growth in many economies, particularly when linked with the rapid growth of air travel. Privatisation of an airport can generate a radical change in the overall business model for the airport owner and the various stakeholders involved in the operation of the airport. Sydney Airport has restructured its overarching business model to meet the demands of stakeholders. Using feedback from key stakeholders, this research examines the generally accepted view that airport privatisation leads to an improvement in airport performance. Chesbrough's Business Model Framework provides a lens to assist the analysis of Sydney Airport operations before and after privatisation, and provides valuable insights into the impact of privatisation on business model innovation. © Cambridge University Press and Australian and New Zealand Academy of Management 2014.