The performance implications of outsourcing customer support to service providers in emerging versus established economies

N. Raassens, S. Wuyts, I. Geyskens

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21 Citaten (Scopus)
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Samenvatting

Recent discussions in the business press query the contribution of customer-support outsourcing to firm performance. Despite the controversy surrounding its performance implications, customer-support outsourcing is still on the rise, especially to emerging markets. Against this backdrop, we study under which conditions customer-support outsourcing to providers from emerging versus established economies is more versus less successful. Our performance measure is the stock-market reaction around the outsourcing announcement date. Although customer-support outsourcing is on average evaluated more favorably for providers located in emerging markets as opposed to established economies, approximately 50% of the outsourcing announcements in our sample are evaluated negatively. We find that the shareholder-value implications of customer-support outsourcing to emerging versus established economies are contingent on the nature of the customer support that is being outsourced and on the nature of the outsourcing firm. Customer-support outsourcing to emerging markets is less beneficial for services that are characterized by personal customer contact and high knowledge embeddedness than for customer-support services that involve impersonal customer contact and are low on knowledge embeddedness. Firms higher in marketing resource intensity and larger firms benefit more from outsourcing customer-support services to emerging markets than firms lower in marketing resource intensity and smaller firms.
Originele taal-2Engels
Pagina's (van-tot)280-292
Aantal pagina's13
TijdschriftInternational Journal of Research in Marketing
Volume31
Nummer van het tijdschrift3
DOI's
StatusGepubliceerd - 2014

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