Start Date

12-13-2015

Description

Under pressure to deliver value, whilst driving down costs, shared service units (SSUs) themselves are turning to outsourcing. Despite efforts to manage both relationships, it can be the case that the SSU’s internal clients communicate directly with an external vendor, exchanging information which bypasses the SSU. The use of such illegitimate communication channels lead to what we refer to in this paper as Vendor-Client (V-C) workarounds. How units cope with V-C workarounds to limit detrimental impacts, whilst encouraging or accommodating those of potential benefit, has been largely understudied. This working paper draws on preliminary data, from the shared finance unit of a global logistics organization, to answer our main research question: How do SSUs regulate existing Vendor-Client workarounds to benefit information flow? In answering the question, we take an Information Brokering perspective to help explain the how SSUs leverage their position as intermediaries and manage information interfaces to regulate workarounds.

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Dec 13th, 12:00 AM

Regulating Vendor-Client Workarounds: An Information Brokering Approach

Under pressure to deliver value, whilst driving down costs, shared service units (SSUs) themselves are turning to outsourcing. Despite efforts to manage both relationships, it can be the case that the SSU’s internal clients communicate directly with an external vendor, exchanging information which bypasses the SSU. The use of such illegitimate communication channels lead to what we refer to in this paper as Vendor-Client (V-C) workarounds. How units cope with V-C workarounds to limit detrimental impacts, whilst encouraging or accommodating those of potential benefit, has been largely understudied. This working paper draws on preliminary data, from the shared finance unit of a global logistics organization, to answer our main research question: How do SSUs regulate existing Vendor-Client workarounds to benefit information flow? In answering the question, we take an Information Brokering perspective to help explain the how SSUs leverage their position as intermediaries and manage information interfaces to regulate workarounds.