Outsourcing of IT and Absorptive Capacity: A Multiple Case Study in the Brazilian Insurance Sector

Sources of external knowledge are critical to the implementation of strategies to achieve innovation, especially in the case of information technology. The concept of absorptive capacity reflects the ability of firms to obtain, assimilate, combine, and extract advantages from external knowledge to g...

Full description

Saved in:
Bibliographic Details
Main Authors: Valter Moreno, Marcello A. S. Coelho, Claudio Pitassi
Format: Article
Language:English
Published: FUCAPE Business School 2020-01-01
Series:BBR: Brazilian Business Review
Subjects:
Online Access:http://www.redalyc.org/articulo.oa?id=123062398005
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1825207309058441216
author Valter Moreno
Marcello A. S. Coelho
Claudio Pitassi
author_facet Valter Moreno
Marcello A. S. Coelho
Claudio Pitassi
author_sort Valter Moreno
collection DOAJ
description Sources of external knowledge are critical to the implementation of strategies to achieve innovation, especially in the case of information technology. The concept of absorptive capacity reflects the ability of firms to obtain, assimilate, combine, and extract advantages from external knowledge to generate innovations. The objective of this multiple case study was to investigate how outsourcing of IT can influence the absorptive and innovative capacity of organizations, focused on the insurance sector. The results of comparing four insurers with different degrees of innovation and adoption of IT outsourcing indicate that the connections between the strategy of relationship with suppliers and the stance of the IT area of the client company, and its previous activity and level of knowledge, are essential to determine the absorptive and innovative capacity. Besides this, companies that neglect outsourcing of IT to leverage their absorptive and innovative capacity can suffer significant harm regarding the use of resources, agility, and competitiveness.
format Article
id doaj-art-001f1c634b1641e4896654884495d6be
institution Kabale University
issn 1807-734X
language English
publishDate 2020-01-01
publisher FUCAPE Business School
record_format Article
series BBR: Brazilian Business Review
spelling doaj-art-001f1c634b1641e4896654884495d6be2025-02-06T23:39:32ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2020-01-011719711310.15728/bbr.2020.17.1.5Outsourcing of IT and Absorptive Capacity: A Multiple Case Study in the Brazilian Insurance SectorValter MorenoMarcello A. S. CoelhoClaudio PitassiSources of external knowledge are critical to the implementation of strategies to achieve innovation, especially in the case of information technology. The concept of absorptive capacity reflects the ability of firms to obtain, assimilate, combine, and extract advantages from external knowledge to generate innovations. The objective of this multiple case study was to investigate how outsourcing of IT can influence the absorptive and innovative capacity of organizations, focused on the insurance sector. The results of comparing four insurers with different degrees of innovation and adoption of IT outsourcing indicate that the connections between the strategy of relationship with suppliers and the stance of the IT area of the client company, and its previous activity and level of knowledge, are essential to determine the absorptive and innovative capacity. Besides this, companies that neglect outsourcing of IT to leverage their absorptive and innovative capacity can suffer significant harm regarding the use of resources, agility, and competitiveness.http://www.redalyc.org/articulo.oa?id=123062398005outsourcing of itabsorptive capacityinnovationinsurance
spellingShingle Valter Moreno
Marcello A. S. Coelho
Claudio Pitassi
Outsourcing of IT and Absorptive Capacity: A Multiple Case Study in the Brazilian Insurance Sector
BBR: Brazilian Business Review
outsourcing of it
absorptive capacity
innovation
insurance
title Outsourcing of IT and Absorptive Capacity: A Multiple Case Study in the Brazilian Insurance Sector
title_full Outsourcing of IT and Absorptive Capacity: A Multiple Case Study in the Brazilian Insurance Sector
title_fullStr Outsourcing of IT and Absorptive Capacity: A Multiple Case Study in the Brazilian Insurance Sector
title_full_unstemmed Outsourcing of IT and Absorptive Capacity: A Multiple Case Study in the Brazilian Insurance Sector
title_short Outsourcing of IT and Absorptive Capacity: A Multiple Case Study in the Brazilian Insurance Sector
title_sort outsourcing of it and absorptive capacity a multiple case study in the brazilian insurance sector
topic outsourcing of it
absorptive capacity
innovation
insurance
url http://www.redalyc.org/articulo.oa?id=123062398005
work_keys_str_mv AT valtermoreno outsourcingofitandabsorptivecapacityamultiplecasestudyinthebrazilianinsurancesector
AT marcelloascoelho outsourcingofitandabsorptivecapacityamultiplecasestudyinthebrazilianinsurancesector
AT claudiopitassi outsourcingofitandabsorptivecapacityamultiplecasestudyinthebrazilianinsurancesector