EVALUATION OF PROJECT OUTSOURCING RISKS ON PROJECT PERFORMANCE IN SELECTED COMPANIES IN THE TELECOMMUNICATION SECTOR IN KENYA
Abstract
The aim of this study was to evaluate project outsourcing risks on project performance in selected companies in the telecommunication sector in Kenya. The objectives of the study were to establish the influence of financial risk in project outsourcing on project performance in telecommunication industry in Kenya, to examine the influence of performance risks in project outsourcing on project performance in telecommunication industry in Kenya and to identify the influence of lock in risks in project outsourcing on project performance in the telecommunication industry in Kenya. This study was carried out using a cross sectional survey design. The target population comprised of 135 respondents from the 5 Departments which include projects department, administration department, presales department, sales department, service delivery and support department in AVIAT Networks (61 respondents) and Huawei Kenya (74 respondents). The sample size comprised of 100 respondents. The main data collection tools were questionnaires for the employees and interviews for managers. Before collecting the actual data, the researcher carried out a pilot study in Linksoft Communication Systems Ltd to assess the clarity of the questionnaire items so that those items found to be vague or inadequate are discarded or modified to improve the quality of the research instruments. The organizations management were contacted to permit the researcher to carry out the study within the organizations.
Key Words: Project outsourcing risks, Project performance
Full Text:
PDFReferences
Adeleye J. K. (2002). Purchasing Material(5th Ed); Pearson
Aubert & Rivard (2008). Firm Resources and Sustained Competitive Advantage, Journal of Management, 17(1):99.
Bacon, C. (1999).Guiding Principles for Managing Outsourcing Relationships,Aurisa/1999 Conference Proceedings, referred papers, Dunedin, New Zealand1-7
Bakan, J. (2005). The corporation: The pathological pursuit of profit and power. Simon and Schuster.
Bender, P. (2009). Cashing in on competition. Outsourcing Journal. www.outsourcingjournal.com/issues. (Dec.):1-3.
Bosire. R.(2010) The impact of outsourcing or lead time and customer service. A Surveyon supermarkets in Kenya. Unpublished MBA Project, university of Nairobi ‘school of business, Nairobi
Borg, R. & Gall, M. (1989).Educational Research: an Introduction. New York: Longman Inc.
Bucki, J. (2011). Top 7 outsourcing advantages. Retrieved from http://operationstech.about.com/od/officestaffingandmanagem/a/OutSrcAdvantg.htm
Buya,V. (2010).Implementation of the outsourcing strategy in cement manufacturingindustry in Kenya. Unpublished MBA project, University of Nairobi School ofbusiness, Nairobi.
Catherine, W. (2004). Top three potential risks with outsourcing InformationSystems. Information Systems Control Journal,5, 2.
CEEOA (2012). Central and Eastern Europe IT Outsourcing Review 2010, Central and Eastern European Outsourcing Association(www.ceeoa.org)
Chanzu F. N. (2002).Outsourcing dilemma: the search for competitiveness, the. FT Press.
Coase, R.H. (1937). The nature of the firm. Economica, 4, 386–405.
Cullen & Willcocks, (2003). Purchasing Principle & Techniques, (3rd Ed); ELBS with Pitman Publishers Publications Response Books
David, P. J., Lindroth, R. & Norrman, A. (2004) Risk, Information and Incentives in Telecommunication supply chain. International Journal of Production Economics 90, 1- 16.
Del Vecchio, J. A. (1999). Outsourcing Friend or Foe. Retrieved from http://www.pmi.org; Proceedings of the 30th. Annual Project Management Institute 1999 Seminars & Symposium
Erik, B., Peter, R., & Jan, R. (2006). Managing IT outsourcing. Netherlands: Routledge
Feeny M. (2007). Purchasing & Supply Management. Fourth edition, Pearson Publishers
Gakii M.(2010).The challenge of implementing business outsourcing strategicmanagement .E.A breweries (Kenya)Ltd. Unpublished MBA project, university of Nairobi School of Business, Nairobi.
Gay L. (2002). Education Research competencies for analysis and application (4thed). Macmillan publishers:New York.
Goldstein, A. (1999).Outsourcing Survey. www. Outsourcing BPO. Com/Html/Goldstein HTML. (Retrieved 30th August 2012)
Gottschalk, P. (2007).Knowledge Management Systems: Value Shop Creation. IGIGlobal
Gottschalk, P. (2006a). E-Business Strategy, Sourcing and Governance. IGI Global
Graf M, & Mudambi S. M. (2005). The Outsourcing of IT Enabled Business Processes: a Conceptual Model of the Location Decision. Journal of international management 11(2): 253-268.
Grover, V., Cheon, M.J. & Teng, J.T. (1996). The effect ofservice quality and partnership on the outsourcing ofinformation systems functions.Journal of Management Information Systems,12(4), 89–116
Heywood, M. J. (2006). The outsourcing handbook: how to implement a successful outsourcing Process. London:
Hunsburger, K. (2011).The risks outsourcing Know them and what to do about Them.Retrieved from http://www.pmi.org; Proceedings of the 30thAnnual ProjectManagement Institute 1999 Seminars & Symposium
Hussey Jill & Hussey Rodger (1997). Business Research: A Practical Guide for Undergraduates and Postgraduate Students, Palgrave: Macmillan
Information Systems and Audit Control Association. (2009). CISA Review Manual. Illinois: ISACA.
Belcourt, M. (2006). Outsourcing, the benefits and the risks. Human Resource Management Review , 16(2), 269-279.
International Data Corporation (1997). European consulting and management services: riding the wave: an analysis of outsourcing market leaders in Western Europe. Research report, International Data Corporation.
Kaila, R. P. (2011). Central & Eastern European IT Outsourcing – 2011 Market Overview available at: http://analysiscasestudy.blogspot.com/2011/10/central-eastern-european-it- outsourcing.html
Kemps, R. R. (1992). Fundamentals of project performance measurement. San Diego Publishing Company.
Kern, Thomas, Willcocks, Leslie P., van Heck, Eric (2002). The winner's curse in IT outsourcing: Strategies for avoiding relational trauma. California Management Review, 44 (2), str. 47-69
Ketler H. & Walstrom K. (2003). Needs Analysis and Alternative Information Technology Investment Strategies, in Schniederjans, Marc J. and Hamaker, Jamie L. and Schniederjans, Ashyln M., Information Technology Investment Decision Making Methodology, World Scientific Publishing Co., River Edge, NJ, pp. 389
Kinyua C. (2000). A comparative study of important risk factors involved in offshore and domestic outsourcing of software development projects:Information & Management, 46(1), 57-68.
Kirui A. (2001). Establishing and maintaining trust in software outsourcing relationships: An empirical investigation. Journal of Systems and Software, 80(9), 1438-1449.
Kombo D. K. & Tromp D. L. A. (2006). “Proposal and Thesis Writing – A Production”: Nairobi: Paulines Publications Africa.
Kotabe, M., Murray J., & Javalagi R. (2008). Global sourcing of service and market performance:Au empirical investigation. Journal of International Marketing 6(4): 10-13.
Kubr, M. (2002), Management consulting a guide to the profession. Geneva: International Labour Organization.
Lacity M. & Willcocks L. (2008). An Empirical Investigation of Information Technology Sourcing Practices: Lessons from Experience, MIS Quarterly 22, No. 3, 363–408.
Lacity, Dr., Mary, C., Leslie, P., & Willcocks. (2001). Global IT outsourcing. New York, USA: John Wiley & Sons.
Lacity, M.C. & Hirschheim, R. (1993). Information Systems Outsourcing: Myths, Metaphors and Realities. Wiley, Chichester
Lacity, M.C. & Willcocks, L.P. (1996). Interpreting information technology sourcing decision from a transactioncost perspective: findings and critique.Accounting, Management, and Information Technology,5(3/4),203–244
Lamming. R. C (1993). Beyond Partnership; Strategies for innovation and learn supply. Prentice – Hall, England, Cliff. N. NJ.
Lau, R.S. & C.N. Hurly. (1997). Outsourcing through strategic alliances. Management Journal 38(2):52-57.
Lee T. (2003). Are we Exporting American Jobs?A Paper Presented at Senate Democratic Policy Committee Hearing.
Levine, M., & Schneider, M. (2007). Making the distinction: Risk management, riskexposure. Risk Management,36-42.
Lieberman, P., & LaClair, A. (2011). How to guarantee quality project management when outsourcing projects. Retrieved from http://www.pmi.org/Knowledge- Center/Knowledge-Shelf/Outsourcing.aspx
Linder, C. (2004). Outsourcing for Radical Change: A Bold Approach to Enterprise Transformation. AMACOM, 1st edition, New York
Loh, L. (1994). An Organization-economic blueprint for information technology outsourcing: concepts andevidence. In:Proceedings of the Fifteenth International Conference on Information Systems, Vancouver,DeGross, J.I., Huff, S.L.& Munro, M.C.(eds), pp. 73– 90
Lonsdale, C & Andrew (2007). Outsourcing: risk and rewards. Supply Management, Vol. 2, str. 32-34
MacCormack, A., R. &Verganti H. (2003). Managing the Sources of Uncertainty: Matching Process and Context in Software Development. The Journal of Product Innovation Management. 20(3) 217 – 232.
Madhok, A. (2002). Reassessing the fundamentals and beyond: Ronald Coase, the transaction cost and resource-based theories of the firm and the institutional structure of production. Strategic Management Journal, 23(6): 535-550.
Maina,G.M.(2011).Effects of business associations in promoting growth of small andmedium enterprises in Kenya. A case study of National Chamber ofCommerce and Industry. June (2011) Nairobi Kenya.
Mazzawi, E., (2002). Transformational Outsourcing.Business Strategy Review, Vol.13, 39- 43.
McFarlan, F., & Nolan, R. (2009). How to manage an IT outsourcing alliance.Sloan Management Review,36 (2), 9-23.
Martin K. &Acuna, C. (2002).SPSS for Institutional Researchers. Lewisburg, Pennsylvania: Bucknell University Press.
Mowery, D.C., J.E. Oxley, & B. S. Silverman. (2006). Strategic alliances and interfirm knowledge transfer. Strategic Management Journal 17:77-91.
Mowery I. C. (ED) (1998). International collaborations ventures in USmanufacturing, Ballinger Cambridge. M. A
Mugenda M. O. & Mugenda A. (1999). Research Methods: Qualitative and Quantitative Approaches. Nairobi: Acts press.
Mugenda O. & Mugenda, A. (2003).Research Methods: Quantitative and Qualitative Approaches. Nairobi: Acts press.
Mullin R. (1996). Managing the outsource enterprise.Journal of Business Strategy 17(4);28-38.
Nakatsu & Iacovou, S. (2008). The Contracting Organization: A Strategic Guide to Outsourcing. Oxford: Oxford University Press.
Orodho A. J. (2005). Techniques of writing research proposals and reports in Educational and Social Sciences, (2ndEd) Nairobi: kaneja H.P Enterprises.
Orodho J. A. (2002). Techniques of Writing Research Proposals and Reports in Education and Social Sciences. Nairobi: Masola Publishers.
Pandey, V. & Bansal, V. (2003). A Decision-Making Framework for IT Outsourcing using the Analytic Hierarchy Process
Pedler, M., Burgogyne, J. & Boydell, T, (2007).The Learning Company: A strategy for sustainable development, (2ndEd). London; McGraw-Hill
Quinn, B. J. (2000). Outsourcing innovation: The new engine of growth. Sloan Management Review 41(14):13-23.
Rao, M., T. (2004). Key issues for global IT sourcing: country and individual factors,EDPACS; Vol. 32, 4; ABI/INFORM Global
Ross J. & westerman G. (2003), Preparing for Utility Computing: The Role of ITArchitecture and relationship management ,http://cs.nju.edu.cn/yangxc/utilitycomputin/ross.pdf
Safire, W. (2004). On language: Outsource and the urge to insource. The New York Times Magazine, March 26, 2004, p.30.
Schwartz, M. (1987). Telecommunication networks: protocols, modeling and analysis (Vol. 7). Reading, MA: Addison-Wesley.
Steensma, K.R. and K.G. Corley. (2000). On the performance of technology-sourcing partnerships:The interaction between partner interdependence and technology attributes. Academy of ManagementJournal 43(6):1045-1067.
Thoms, Brian (2004). Outsourcing: Inside Out and Outside in. Stevens institute of technology, Hoboken, New Jersey.
Williamson, O. (1975). Markets andhierarchies, analysis and antitrust implications: A study in the economics of internal organization. New York: Free Press.
Williamson, O. E., 1998). Transaction cost economics: how it works; where it is headed, De Economist 146, pp 23-58
DOI: http://dx.doi.org/10.61426/sjbcm.v2i1.113
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.