Evidence from four Indian BPOs on the role of quality management in building market-based organizational learning capacities

Abstract

Companies, even those that engage in business process outsourcing, get value from their supplier networks, and this fact is recognized in the literature on business-to-business marketing. A dynamic interchange of complementary organizational skills between a corporation and its network partners typically makes this value realization feasible. Little is known, however, about the processes via which outsourcing companies acquire these competencies and so achieve value. This study fills a theoretical need by discussing how business process outsourcing companies might build organizational learning capabilities based on market data. Developing market-based organizational learning capacity is the focus of this research, which examines the role of quality management skills via a capabilities lens. Results from a case study of four Indian BPOs point to the importance of quality management in facilitating knowledge sharing, diffusion, and the growth of market-based organizational learning capacities. Theoretical and practical implications are addressed.