Understanding the Modularization of Business Services: The Maturity of Firms in Bundling Services

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Abstract

Sourcing literature reveals that large firms bundle or unbundle existing business services by means of modularization to achieve organizational agility. However, one may assume that firms need some degree of maturity to manage the complexity that comes along with bundling modularized services. The aim of our research is to understand how modularization interrelates with firm maturity when bundling business services, a topic that has been given limited attention in sourcing literature. Based on an exploratory research amongst 110 firms we found evidence for the relevance of influencing factors on firm maturity in bundling services. The findings provide evidence that the number of business services and the size of the firm correlate with the maturity of the firm. More specifically, our analysis identified that the type of market in which a firm acts (i.e. private or public) and adding the Marketing business function to a bundle does not increase firm maturity. Our empirical research contributes to sourcing literature as we expanded previous research by taking a more in-depth view on business services while providing up-to-date insights.

Original languageEnglish
Title of host publicationProceedings of Global Sourcing of Digital Services: Micro and Macro Perspectives - 11th Global Sourcing Workshop 2017, Revised Selected Papers
PublisherSpringer
Pages65-80
Number of pages16
Volume306
ISBN (Print)9783319703046
DOIs
Publication statusPublished - 2017
Event11th Global Sourcing Workshop on Micro and Macro Perspectives, 2017 - La Thuile, Italy
Duration: 22 Feb 201725 Feb 2017

Publication series

NameLecture Notes in Business Information Processing
Volume306
ISSN (Print)18651348

Conference

Conference11th Global Sourcing Workshop on Micro and Macro Perspectives, 2017
CountryItaly
CityLa Thuile
Period22/02/1725/02/17

Keywords

  • Bundled business services
  • Maturity
  • Modularization
  • Outsourcing

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    Plugge, A., & Bouwman, H. (2017). Understanding the Modularization of Business Services: The Maturity of Firms in Bundling Services. In Proceedings of Global Sourcing of Digital Services: Micro and Macro Perspectives - 11th Global Sourcing Workshop 2017, Revised Selected Papers (Vol. 306, pp. 65-80). (Lecture Notes in Business Information Processing; Vol. 306). Springer. https://doi.org/10.1007/978-3-319-70305-3_4