Raymond-Alain Thiétart

Knowledge based transactions and decision framing in Information Technology Outsourcing

Knowledge based transaction costs (KTC) are knowledge related costs associated with the transfer of an information technology (IT) firm process outside its boundaries to a contractual partner. In this paper, we show that these knowledge based transaction costs are omitted variables in studies of firm boundaries that may reduce the likelihood of outsourcing. KTC arise from the risk of expropriation of firm knowledge by their contractual partners. In addition, KTC arise from the stickiness of knowledge, as transfer tacit and complex knowledge is both difficult to transfer and difficult to assimilate. Finally, KTC decrease with the knowledge and capabilities that contractual partners have, as this increases the partner firms ability to assimilate knowledge transferred. While all three sources of KTC lower the likelihood of outsourcing, the way managers frame the outsourcing decision is also important. As a result, managers may engage in outsourcing of IT processes even though they risk greater expropriation hazards in order not to lose out on higher expected outsourced performance. We validate these arguments based on a study of 180 IT processes from firms listed on the French (CAC40) and British (FTSE100) stock exchanges.

The research challenge of French business schools: the case of the Grandes Ecoles

Purpose – The purpose of this paper is to cover the emergence, history, and development of French business schools. It is a reflection on organizational tensions, more particularly within the Grandes Ecoles system, that the challenge of research has created following the schools internationalization of the last 20 years.Design/methodology/approach – Institutional theory, social dynamics, and history provide the frame of analysis.Findings – Internationalization of the French business schools context has transformed the rules of the game. Ability to produce international quality publications has become a competitive necessity to attract faculty and students. Research is now a priority to gain international credibility, hire new faculty and perform successfully in the accreditation process. The shift from teaching institutions to international and research‐orientated business schools has created tensions and new challenges that need to be met.Originality/value – The paper provides an historical account of th...

Managers, engineers and government: The emergence of the mutual organization in the European aerospace industry

Abstract For more than two decades, the European aerospace industry has gone through a number of collaborative ventures to establish or regain a defendable competitive position on world markets. Some of these ventures have been marred by a host of organizational, financial and commercial problems, while others have demonstrated the ability of firms from different countries to band together to undertake complex, risky projects. Both failures and successes provide useful lessons as to the management of international macroprojects. The purpose of this paper is two-fold. First, the authors investigate the rationale for collaborative structures in the context of the European aerospace industry and, in particular, the emergence of what are called “mutual organizations.” Secondly, they draw lessons from the management of these macro-projects and assess the roles of corporate strategies, technology, and international relations. For this dual purpose, they rely on four case studies: two civil aircraft projects (Concorde and Airbus) and two space organizations (ESRO and ELDO, the ancestors of the European Space Agency).

Stradin: A Strategic Dynamic and Interactive Decision-Making Process

This article proposes a new strategic decision-making process: Stradin. Stradin uses recent developments in computerized network systems and user-friendly interfaces in order to address management challenges of corporations of the 1990s. Five strategic challenges are addressed: (1) finding the right balance in the centralization-decentralization dilemma; (2) conciliating strategic decisions and their operational implementation; (3) finding a balance between role differentiation and integration; (4) using conflict constructively in order to improve decision making; (5) conciliating emerging strategies and continuity. The article below discusses each of these challenges and shows how Stradin can help in meeting them.