Implementing Global Business Services in a Plural Sourcing Context: Conceptualizing Modes of Service Governance

Abstract

To increase organizational responsiveness, firms nowadays seek various approaches in delivering global shared business services. Today, global operating firms apply a plural sourcing model that consists of both in-house and outsourced business services. As such, service governance is needed to manage interdependencies between vendors, both in-house and outsourced. However, as far as we know no study has yet addressed how global business services are governed within the context of plural sourcing. We conducted 68 semi-structured interviews with executive management of international firms and distributed a survey questionnaire to explore service governance modes. As a result, we identify five service governance modes: regional, global, centralized, de-centuriated and multifunctional. Our paper contributes to research on global business services and plural sourcing by exploring various service governance modes. Theoretical and practical implications are discussed.