Skip to main content
SpringerLink
Log in

Linking and leveraging resources for innovation and growth through collaborative value creation: A study of Indian OSPs

  • Published:
Asia Pacific Journal of Management Aims and scope Submit manuscript

Abstract

How do knowledge-intensive and technology-based service providers from emerging economies sustain their innovation to grow rapidly and become dominant global players in their fields? We explain this recent phenomenon for a sample of offshore service providers (OSPs) from India by drawing from the collaborative value creation theoretical perspective and Mathews’ (Asia Pacific Journal of Management, 23(1):5–27, 2006a) resource “linking and leveraging” concepts. This paper shows that OSPs from India develop high quality relationships to enable them access and exploit network resources in delivering customized and innovative services to clients globally. The findings of this research provide further evidence that Mathews’ (Asia Pacific Journal of Management, 23(1):5–27, 2006a) internationalization framework of emerging economy multinational enterprises can be generalized to service providers.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

References

  • Adler, P. S. 2002. Market, heirarchy, and trust: The knowledge economy and the future of capitalism. In C. W. Choo & N. Bontis (Eds.). The strategic management of intellectual capital and organizational knowledge. Oxford: Oxford University Press.

    Google Scholar 

  • Amato, S., Esposito-Vinzi, V., & Tenenhaus, M. 2004. A global goodness-of-fit index for PLS structural equation modelling. Oral Communication to PLS Club. Paris: HEC School of Management.

  • Anderson, J., & Gerbing, D. W. 1988. Structural equations modelling in practice: A review and recommended two step approach. Psychological Bulletin, 103(3): 411–423.

    Article  Google Scholar 

  • Ayuso, S., Rodríguez, M., García-Castro, R., & Ariño, M. 2011. Does stakeholder engagement promote sustainable innovation orientation. Industrial Management and Data Systemsx, 111(9): 1399–1417.

    Article  Google Scholar 

  • Bagozzi, R., Yi, Y., & Phillips, L. 1991. Assessing construct validity in organisatioal research. Administration Science Quarterly, 36(3): 421–458.

    Article  Google Scholar 

  • Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1): 99–120.

    Article  Google Scholar 

  • Barthelemy, J. 2003. The hard and soft sides of IT outsourcing management. European Management Journal, 21(5): 539–548.

    Article  Google Scholar 

  • Bartlett, C., & Ghoshal, S. 2000. Going global: Lessons from late movers. Harvard Business Review, April: 75-86.

  • Bowen, F. E., Rostami, M., & Steel, P. 2010. Timing is everything: A meta-analysis of the relationships between organizational performance and innovation. Journal of Business Research, 63(11): 1179–1185.

    Article  Google Scholar 

  • Cardoza, G., & Fornes, G. 2011. The internationalisation of SMEs from China: The case of Ningxia Hui Autonomous Region. Asia Pacific Journal of Management, 28(4): 737–759.

    Article  Google Scholar 

  • Chadee, D., & Mattson, J. 1998. Do service and merchandise exporters behave and perform diffrently? A New Zealand investigation. European Journal of Marketing, 32(9/10): 830–842.

    Article  Google Scholar 

  • Chadee, D., & Raman, R. 2009. International outsourcing of information technology services: Review and future directions. International Marketing Review, 26(4/5): 411–438.

    Article  Google Scholar 

  • Chittoor, R., Sarkar, M. B., Ray, S., & Aulakh, P. S. 2009. Third-World copycats to emerging multinationals: Institutional changes and organizational transformation in the Indian pharmaceutical industry. Organization Science, 20(1): 187–205.

    Article  Google Scholar 

  • Cohen, J. 1992. A power primer. Psychological Bulletin, 112(1): 155–159.

    Article  Google Scholar 

  • Conte, A., & Vivarelli, M. 2013. Succeeding in innovation: Key insights on the role of R&D and technological acquisition drawn from company data. Discussion Paper No 7671. Germany: Institute for the Study of Labour.

    Google Scholar 

  • Crossan, M. M., & Apaydin, M. 2010. A multi-dimensional framework of organizational innovation: A systematic review of the literature. Journal of Management Studies, 47(6): 1154–1191.

    Article  Google Scholar 

  • Cuervo-Cazurra, A. 2016. Multilatinas as sources of new research insights: The learning and escape drivers of international expansion. Journal of Business Research, 69: 1963–1972.

    Article  Google Scholar 

  • Damanpour, F., & Aravind, D. 2011. Managerial innovation: Conceptions, processes, and antesedents. Management & Organization Revieww, 8(2): 423–454.

    Article  Google Scholar 

  • DeVellis, R. 2012. Scale development: Theory and applications. Thousand Oaks: Sage.

  • Elango, B., & Pattnaik, C. 2007. Building capabilities for international operations through networks: A study of Indian firms. Journal of International Business Studies, 38(4): 541–555.

    Article  Google Scholar 

  • Franke, N., & Schreier, M. 2010. Why customers value self-designed products: The importance of process effort and enjoyment. Journal of Product Innovation Management, 27(7): 1020–1031.

    Article  Google Scholar 

  • Gaur, A. S., Kumar, V., & Singh, D. 2014. Institutions, resources, and internationalization of emerging economy firms. Journal of World Business, 49(1): 12–20.

    Article  Google Scholar 

  • Geisser, S. 1975. The predictive sample reuse method with applications. Journal of the American Statistical Association, 70(350): 320–328.

    Article  Google Scholar 

  • Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. 2010. Multivariate data analysis: A global perspective. New Jersey: Pearson.

    Google Scholar 

  • Hao, T., & Mathews, J. A. 2015. Accelerated internationalization and resource leverage strategizing: The case of Chinese wind turbine manufacturers. Journal of World Business, 50(3): 417–427.

    Article  Google Scholar 

  • Harman, H. H. 1976. Modern factor analysis. Chicago: University of Chicago.

  • Hennart, J.-F. 2012. Emerging market multinationals and the theory of the multinational enterprise. Global Strategy Journal, 2(3): 168–187.

    Article  Google Scholar 

  • Holtzman, Y. 2014. A strategy of innovation through the development of a portfolio of innovation capabilities. Journal of Management Development, 33(1): 24–31.

    Article  Google Scholar 

  • Holzweber, M., Mattsson, J., Chadee, D., & Raman, R. 2012. How dynamic capabilities drive performance in the Indian IT industry: The role of information and co-ordination. Service Industries Journal, 32(4): 531–550.

    Article  Google Scholar 

  • Infosys. 2014. Annual report 2014: Evolving with changing times. http://www.infosys.com/investors/reports-filings/annual-report/annual/Documents/Infosys-AR-14.pdf, Accessed Mar 26, 2014.

  • Johanson, J., & Vahlne, J.-E. 2011. Markets as networks: Implications for strategy-making. Journal of the Academy of Marketing Science, 39(4): 484–491.

    Article  Google Scholar 

  • Kale, P., Singh, H., & Permutter, H. 2000. Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strategic Management Journal, 21(3): 217–237.

    Article  Google Scholar 

  • Kock, N. 2012. WarpPLS3.0 user manual. Laredo: Script Warp Systems.

  • Kühne, B., Gellynck, X., & Weaver, R. D. 2013. The influence of relationship quality on the innovation capacity in traditional food chains. Supply Chain Management, 18(1): 52–65.

    Article  Google Scholar 

  • Kumar, K., Boesso, G., Favotto, F., & Menini, A. 2012. Strategic orientation, innovation patterns and performance of SMEs and large companies. Journal of Small Business and Enterprise Development, 19(1): 132–145.

    Article  Google Scholar 

  • Kumar, V., Mudambi, R., & Gray, S. 2013. Internationalization, innovation and institutions: The 3 I’s underpinning the competitiveness of emerging market firms. Journal of International Management, 19(3): 203–206.

    Article  Google Scholar 

  • Lahiri, S., & Kedia, B. 2009. The effects of internal resources and partnership quality on firm performance: An examination of Indian BPO providers. Journal of International Management, 15(2): 209–224.

    Article  Google Scholar 

  • Lahiri, S., & Kedia, B. L. 2011. Determining quality of business-to-business relationships: A study of Indian IT-enabled service providers. European Management Journal, 29(1): 11–24.

    Article  Google Scholar 

  • Lee, J.-N. 2001. The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success. Information & Management, 38(5): 323–335.

    Article  Google Scholar 

  • Leiponen, A. 2012. The benefits of R&D and breadth in innovation strategies: A comparison of Finnish service and manufacturing firms. Industrial & Corporate Change, 21(5): 1255–1281.

    Article  Google Scholar 

  • Lewin, A., Massini, S., & Peeters, C. 2009. Why are companies offshoring innovation? The emerging global race for talent. Journal of International Business Studies, 40(6): 901–925.

    Article  Google Scholar 

  • Li, X., Zheng, Y., & Wang, C. 2016. Inter-firm collaboration in new product development in Chinese pharmaceutical companies. Asia Pacific Journal of Management, 33(1): 165–193.

    Article  Google Scholar 

  • Lindell, M. L., & Whitney, D. 2001. Accounting for common method variance in cross sectional research designs. Journal of Applied Psychology, 86(1): 114–121.

    Article  Google Scholar 

  • Madhok, A., & Keyhani, M. 2012. Acquisitions as entrepreneurship: Asymmetries, opportunities, and the internationalization of multinationals from emerging economies. Global Strategy Journal, 2(1): 26–40.

    Article  Google Scholar 

  • Malhotra, N. K., Kim, S. S., & Patil, A. 2006. Common method variance in IS research: A comparison of alternative approaches and a reanalysis of past research. Management Science, 52(12): 1865–1883.

    Article  Google Scholar 

  • Marcoulides, G. A., & Saunders, C. 2006. PLS: A silver bullet?. MIS Quarterly, 30(2): 3–9.

    Article  Google Scholar 

  • Mathews, J. 2006a. Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management, 23(1): 5–27.

    Article  Google Scholar 

  • Mathews, J. A. 2006b. Response to professors Dunning and Narula. Asia Pacific Journal of Management, 23(2): 153–155.

    Article  Google Scholar 

  • McManus, J. T., Li, M., & Moitra, M. 2007. China and India: Opprtunities and threat for the global software industry. London: Elsevier.

    Book  Google Scholar 

  • Melia, M., Perez, A., & Dobon, S. 2010. The influence of innovation orientation on the internationalisation of SMEs in the service sector. Service Industries Journal, 30(5): 777–791.

    Article  Google Scholar 

  • Meyer, K., & Thaijongrak, O. 2013. The dynamics of emerging economy MNEs: How the internationalization process model can guide future research. Asia Pacific Journal of Management, 30(4): 1125–1153.

    Article  Google Scholar 

  • Moeller, S., Ciuchita, R., Mahr, D., Odekerken-Schroder, G., & Fassnacht, M. 2013. Uncovering collaborative value creation patterns and establishing corresponding customer roles. Journal of Services Research, 16(4): 471–487.

    Article  Google Scholar 

  • Nandakumar, M. K., Purkayastha, S., & Kumar, V. 2016. Guest editors’ introduction. International Studies of Management & Organization, 46(1): 1–7.

    Article  Google Scholar 

  • Nasscom. 2010. Annual report 2009-2010. New Delhi: National Association of Software and Service Companies.

    Google Scholar 

  • Nasscom. 2013. The IT-BPO secor in India: Strategic review. New Delhi: National Association of Software and Service Comapnies.

    Google Scholar 

  • Nasscom. 2015. Annual report 2014-15. New Delhi: National Association of Software and Service Comapnies.

    Google Scholar 

  • OECD. 2005. Oslo manual: Guidelines for collecting and interpreting innovation data. Paris: OECD and European Commission.

    Google Scholar 

  • Peng, M. W., Sun, S. L., Pinkham, B., & Hao, C. 2009. The institution-based view as a third leg for a strategy tripod. Academy of Management Perspectives, 23(3): 63–81.

  • Preacher, K. J., & Hayes, A. F. 2008. Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavioural Research Methods, 40(3): 879–891.

    Article  Google Scholar 

  • Pulos, & Rogness. 1995. Soft modelling and special education. Remedial and Special Education, 16(3): 184–192.

    Article  Google Scholar 

  • Ramachandran, J., & Pant, A. 2010. The liability of origin: An emerging economy perspective on the costs of doing business abroad. In T. M. Divinney, T. Pedersen, & L. Tihanyi (Eds.). Advances in international management: The past, present and future of international business and management: 1–58. New York: Emerald.

    Google Scholar 

  • Ramamurti, R. 2012. What is really different about emerging market multinationals?. Global Strategy Journal, 2(1): 41–47.

    Article  Google Scholar 

  • Raman, R., & Chadee, D. 2011. A comparative assessment of the information technology services sector in India and China. Journal of Contemporary Asia, 41(3): 453–470.

    Article  Google Scholar 

  • Raman, R., Chadee, D., Roxas, B., & Michailova, S. 2013. Effects of partnership quality, talent management, and global mindset on performance of offshore IT service providers in India. Journal of International Management, 19(4): 333–346.

    Article  Google Scholar 

  • Roy, A., & Berger, P. D. 2005. E-mail and mixed mode database surveys revisited: Exploratory analyses of factors affecting response rates. Journal of Database Marketing & Customer Strategy Management, 12(2): 153–171.

    Article  Google Scholar 

  • Roy, S., Sivakumar, K., & Wilkinson, I. F. 2004. Innovation generation in supply chain relationships: A conceptual model and research propositions. Journal of the Academy of Marketing Science, 32(1): 61–79.

    Article  Google Scholar 

  • Sauvant, K. P., Maschek, W. A., & McAllister, G. 2009. Foreign direct investment by emerging market multinational enterprises: The impact of financial crisis and recession and challenges ahead. Global Forum on International Investment, 7(4): 397–410.

    Google Scholar 

  • Sethi, A., & Gott, J. 2016 A. T. Kearney Global Services Location Index. https://www.atkearney.com/strategic-it/global-services-location-index.

  • Slater, S., Olson, E., & Hult, G. T. 2006. The moderating influence of strategic orientation on the strategy formation capability-performance relationship. Strategic Management Journal, 27: 1221–1231.

    Article  Google Scholar 

  • Stone, M. 1974. Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society, 36(1): 111–147.

    Google Scholar 

  • Stuart, T. E., Hoang, H., & Hybels, R. C. 1999. Interorganizational endorsements and the performance of enterpreneurial ventures. Administrative Science Quarterly, 44(2): 315–349.

    Article  Google Scholar 

  • Teece, D. J. 2014. A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. Journal of International Business Studies, 45(1): 8–37.

    Article  Google Scholar 

  • Thite, M., Wilkinson, A., Budhwar, P., & Mathews, J. A. 2016. Internationalization of emerging Indian multinationals: Linkage, leverage and learning (LLL) perspective. International Business Review, 25(1): 435–443.

    Article  Google Scholar 

  • UNCTAD. 2014. World Investment Report 2014: Investing in the SDGs - An Action Plan. New York: UNCTAD

  • Vargo, S. L. 2008. Customer integration and value creation: Paradigmatic traps and perspectives. Journal of Service Research, 11(2): 211–215.

    Article  Google Scholar 

  • Vargo, S. L., & Lusch, R. F. 2004. Evolving a new dominant logic for marketing. Journal of Marketing, 68(1): 1–17.

    Article  Google Scholar 

  • Wetzels, M., Odekerken-Schröder, G., & van Oppen, C. 2009. Using PLS path modelling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33(1): 177–195.

    Article  Google Scholar 

  • Yi, Y., Li, Y., Hitt, M., Liu, Y., & Wei, Z. 2016. The influence of resource bundling on the speed of strategic change: Moderating effects of relational capital. Asia Pacific Journal of Management, 33(2): 435–467.

    Article  Google Scholar 

  • Zaheer, S. 1995. Overcoming the liability of foreignness. Academy of Management Journal, 38(2): 341–363.

    Article  Google Scholar 

  • Zeithaml, V., Parasuraman, A., & Berry, L. L. 1985. Problems and strategies in services marketing. Journal of Marketing, 49(2): 33–46.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management, Deakin University, 221 Burwood Highway, 3125, Melbourne, Australia

    Doren Chadee & Banjo Roxas

  2. School of Marketing and International Business, Victoria University of Wellington, 23 Lambton Quay, PO Box 600, Wellington, 6140, New Zealand

    Revti Raman Sharma

Authors
  1. Doren Chadee
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Revti Raman Sharma
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Banjo Roxas
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Revti Raman Sharma.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Chadee, D., Sharma, R.R. & Roxas, B. Linking and leveraging resources for innovation and growth through collaborative value creation: A study of Indian OSPs. Asia Pac J Manag 34, 777–797 (2017). https://doi.org/10.1007/s10490-016-9485-9

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10490-016-9485-9

Keywords

Search

Navigation