Volume 14, Number 2 Article by Abhoy K Ojha September, 2002
Decomposing a Partner: Intra-organisational Dynamics in Inter-organisational Relationships :
The traditional literature on alliances has treated organisations as homogenous entities, neglecting the influence of intra-organisational dynamics on inter-organisational relationships. This article, based on a longitudinal analysis of the global software outsourcing partnerships between a North America based telecommunications multinational, Global Telecommunications, and four Indian software firms, examines the role of these dynamics within the multinational in the four relationships. Decisions to enter into outsourcing relationships, particularly with global partners, have severe ramifications for nodal organisations.
Contrary to the literature on the subject, data from this research suggested that Global’s decision to establish outsourcing relationships was not a corporate decision, based on evaluation of Global’s specific needs and of various potential partners. It was made at the local departmental level and was driven by committed key individuals. Although the initiative received the approval of the top management, it received reluctant support from the ranks in Global’s laboratories that were expected to identify work suitable for the partners, and then manage it. Their many fears based on loss of identity and self-esteem and of the difficulties of remote control, led to resistance of different kinds. Proficiency in English is touted as one of India’s advantages in the software professional’s field and nothing, one would presume, is more unambiguous than the word ‘Yes’. But it seemed to acquire shades of grey once it crossed the Indian Ocean.
Further, the legal contract between the organisations had little resemblance to the way the relationships actually functioned and intra-organisational rivalry often hurt the natural progress of the four relationships. Due to fundamental changes in the industry, when Global made a major shift in strategic direction and its managers became preoccupied with the new vision within the company, the fall out affected the relationships in ways that had little to do with the performance of the individual organisations and the relationships.
These findings prod researchers to examine mezzo- and micro-level organisational behaviour in any analysis of macro-level organisational behaviour. Partners in such relationships need to keep a tab on the intra-organisational dynamics within their client organisations, in order to understand the viability of their relationships.
Reprint No 02301
