Strategic agency of a Pakistani offshoring service provider

Upgrading and Power Relations in Global Value
Chains: Case Study of an Offshoring Service
Provider in the Software Industry
• Choksy, U. S. (2015). Upgrading and Power Relations in Global Value Chains:
Case Study of an Offshoring Service Provider in the Software Industry. In R.
Van Tulder, A. Verbeke, & R. Drogendijk (Eds.), The Future of Global Organizing
(Vol. 10, pp. 437-465). Bingley, UK: Emerald Group Publishing,
• http://dx.doi.org/10.1108/S1745-886220150000010018
Choksy. PIBR 2015 - http://dx.doi.org/10.1108/S1745-
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Authors
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Authors —
• Dr Umair Shafi Choksy
» Lecturer in International Business and
Management
The University of Manchester, Alliance
Manchester Business School
umair.choksy@manchester.ac.uk
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Problem and motivation
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Problem and research motivation
• With the rise of the global value chain (GVC) and the
interconnected nature of the global economy, much
interdisciplinary research has shown interest in understanding
the upgrading of suppliers in GVCs (e.g., Fleury & Fleury, 2001;
Rabellotti, 2004; Tokatli & Kizilgu¨ n, 2004).
• Current studies on upgrading mainly focus on how governance
structures, led by large MNCs in developed countries, shape
the upgrading of developing country suppliers. These
governance behaviours represent the level of power imposed
by MNCs over their suppliers to meet certain quality criteria
and meet certain deadlines.
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Problem and research motivation
• However, we know less about the agencies (actions, practices,
and strategies) of developing country suppliers to respond to
these governance structures and to what extent these agencies
shape supplier upgrading.
• More specifically, the research questions are:
» How power asymmetries in GVCs shape the upgrading prospects
for suppliers?
» How suppliers manage the power asymmetry in GVCs and
upgrade to a more favourable position?
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Analytical Framework
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Analytical Framework
• Drawing upon GVC and relational economic geography
literature, we argue that the client power shapes the
upgrading practices of OSP but it does not determine them.
OSPs upgrading is a product of OSP’s own strategic priorities
and agendas along GVC requirements (see Fig. 1).
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Methodology
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Methodology-1: Research design and data collection
• Research method: case study of an offshoring services
provider (OSP, supplier of offshoring services to foreign
buyers) in Pakistan’s software industry
• Unit of analysis: Inter-firm and Intra-firm aspects of OSP
• Data collection technique: in-depth interview
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Inter-firm: Pakistani
OSP’s relations with an
MNC client from US
Intra-firm: Internal
strategies and decisions
of Pakistani OSP’s
886220150000010018

Trustworthiness criteria taken from Sinkovics et al (2008)
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Credibility • The interview guideline was designed to explore the dimensions of analytical framework
• interview questions were based on existing theoretical literature with the aim to extend
those theoretical insights.
• Construct validity through use of multiple through multiple data collections sources. Data
collection included extensive research about the participant organizations, media news,
LinkedIn profiles, online software platforms, YouTube, or other videos, awards, and
recognition.
Transferability • company websites and sufficient literature on the software industry was understood to
operationalize conceptual building blocks into suitable interview questions in the context
of Pakistani software firms
Dependability • The interviews were transcribed and analysed on Nvivo using the template analysis
technique.
• A chain of evidence was established for each participant organization. All the documents
related to the participant organization including transcripts, recorded interviews, and
other sources of data relevant to participant organizations were stored in Nvivo
(Sinkovics & Alfoldi, 2012).

Methodology-2: Thematic Analysis
• Drawing upon Sinkovics et al. (2008) and Sinkovics and Alfoldi
(2012), the codes were analysed following three coding processes
that is (1) open coding, (2) axial coding, and (3) selecting coding
• During the open and axial coding processes, new concepts were
added to the template and subcategories were introduced.
• In the selective coding process, all of the interviews were integrated
with updated literature. The aim was to integrate all the conceptual
elements and refine previous literature on OSPs.
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Coding process
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Findings and Contributions
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Findings and contribution
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Findings and contribution
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Strategic agency of a Pakistani offshoring service provider

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