Advertisement

Wirtschaftsinformatik

, Volume 47, Issue 2, pp 109–117 | Cite as

Integrated Decision Model for Credit Product Outsourcing

  • Markus Holzhäuser
  • Markus Lammers
  • Felix Schwarze
WI — Aufsatz

Abstract

Integrated Decision Model for Credit Product Outsourcing The European banking landscape seems to be evolving from a highly vertically integrated banking landscape into a value network of specialized banks. This can also be seen in the credit product industry where consumer credit specialists take over portfolios from other banks. While decision models for IS, operations and production outsourcing are discussed in the literature, we lack a model for credit product outsourcing which reflects the change of risk capital as discussed in the literature about credit sales. In combining these two literature strands, we develop a model to determine whether it is beneficial to internally produce or externally source a credit product.

Keywords

Outsourcing Banking Industry Production Economies Economies of Risk Risk Capital 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. [Ada+02]
    Adams, Robert M.; Bauer, Paul W.; Sickles, Robin C.: Scope and Scale Economies in Federal Reserve Payment Processing. Federal Reserve Bank of Cleveland, 2002.Google Scholar
  2. [AlYo96]
    Alexander, Marcus; Young, David: Strategic Outsourcing. In: Long Range Planning 29 (1996) 1, pp. 116–119.Google Scholar
  3. [AnSt98]
    Ang, Soon; Straub, Detmar W.: Production and Transaction Economies and IS Outsourcing: A Study of the U.S. Banking Industry. In: MIS Quarterly December (1998), pp. 535–552.Google Scholar
  4. [Apte90]
    Apte, Uday M.: Global Outsourcing of Information Systems and Processing Services. In: The Information Society 7 (1990), pp. 287–303.Google Scholar
  5. [Arno00]
    Arnold, Ulli: New dimensions of outsourcing: a combination of transaction cost economies and the core competencies concept. In: European Journal of Purchasing & Supply Management 6 (2000), pp. 23–29.Google Scholar
  6. [Bau+82]
    Baumol, William J.; Panzar, John C.; Willig, Robert D. (ed.): Contestable Market and the Theory of Industry Structure. Harcourt Brace Jovanovich, Inc., New York 1982.Google Scholar
  7. [BlSc73]
    Black, Fischer; Scholes, Myron: The pricing of option and corporate liabilities. In: Journal of Political Economy 81 (1973), pp. 637–653.Google Scholar
  8. [Blu+03]
    Bluhm, Christian; Overbeck, Ludger; Wagner, Christoph: An Introduction to Credit Risk Modeling. In: Financial Mathematics Series. Chapman & Hall/CRC, Boca Raton, London, New York, Washington, D.C. 2003.Google Scholar
  9. [Che+95]
    Cheon, Myun J.; Grover, Varun; Teng, James T.C.: Theoretical perspectives on the outsourcing of information systems. In: Journal of Information Technology 10 (1995), pp. 209–219.Google Scholar
  10. [Coas37]
    Coase, Ronald H.: The Nature of the Firm. In: Economica New Series (1937) 4, pp. 386–405.Google Scholar
  11. [Comm34]
    Commons, John R. (ed.): Institutional Economics. University of Wisconsin Press, Madison 1934.Google Scholar
  12. [DeLo95]
    De Looff, Leon A.: Information systems outsourcing decision making: a framework, organizational theories and case studies. In: Journal of Information Technology 10 (1995), pp. 281–297.Google Scholar
  13. [FeWi98]
    Feeny, David F.; Willcocks, Leslie P.: Core IS Capabilities for Exploiting Information Technology. In: Sloan Management Review Spring (1998), pp. 9–21.Google Scholar
  14. [Grea98]
    Greaver, Maurice F. (ed.): Strategic outsourcing. AMA Publications, New York 1998.Google Scholar
  15. [Ham+02]
    Hamoir, Oliver; McCamish, Carl; Niederkorn, Marc; Thiersch, Christopher: Europe’s Banks: Verging on Merging:. In: McKinsey Quarterly (2002) 3, pp. 116–125.Google Scholar
  16. [Hirs03]
    Hirschheim, Rudy A.: Interview with Rudy Hirschheim on “Perception on information systems outsourcing“. In: Wirtschaftsinformatik 45 (2003) 2, pp. 111–114.CrossRefGoogle Scholar
  17. [HuSG97]
    Hu, Qing; Saunders, Carol; Gebelt, Mary: Research Report: Diffusion of Information Systems Outsourcing: A Reevaluation of Influence Sources. In: Information Systems Research 8 (1997) 3, pp. 288–301.Google Scholar
  18. [Kimb97]
    Kimball, Ralph C.: Specialization, Risk and Capital in Banking. In: New England Economic Review November/December (1997) November/December, pp. 51–73.Google Scholar
  19. [LaHi93]
    Lacity, Mary C.; Hirschheim, Rudy: The Information Systems Outsourcing Bandwagon. In: Sloan Management Review (1993), pp. 73–86.Google Scholar
  20. [LaHW94]
    Lacity, Mary C.; Hirschheim, Rudy A.; Willcocks, Leslie P.: Realizing Outsourcing Expectations: Incredible promise, Credible Outcomes. In: Journal of Information Systems Management 11 (1994) 4, pp. 7–18.Google Scholar
  21. [Lamm04]
    Lammers, Markus: Make, Buy or Share — Combining Resource Based View, Transaction Cost Economics and Production Economies. In: Wirtschaftsinformatik 46 (2004) 3, pp. 204–212.Google Scholar
  22. [Lan+03]
    Lancelotti, Roberto; Schein, Oliver; Spang, Stefan; Stadler, Volker: ICT and Operations outsourcing in banking — Insights from an interview-based pan-European survey. In: Wirtschaftsinformatik 45 (2003) 3, pp. 131–141.CrossRefGoogle Scholar
  23. [LaWF96]
    Lacity, Mary C.; Willcocks, Leslie P.; Feeny, David F.: The Value of Selective IT Sourcing. In: Sloan Management Review (1996), pp. 13–25.Google Scholar
  24. [LaWi03]
    Lacity, Mary C.; Willcocks, Leslie P.: IT Sourcing Reflections — Lessons for Customers and Suppliers. In: Wirtschaftsinformatik 45 (2003) 2, pp. 115–125.CrossRefGoogle Scholar
  25. [LaWi98]
    Lacity, Mary. C.; Willcocks, Leslie. P.: An Empirical Investigation of Information Technology Sourcing Practices: Lessons from Experience. In: MIS Quarterly September (1998), pp. 363–408.Google Scholar
  26. [Lint65]
    Lintner, John: The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets. In: The Review of Economics and Statistics 47 (1965) 1, pp. 13–37.Google Scholar
  27. [LoVe92a]
    Loh, Lawrence; Venkatraman, N.: Determinants of Information Technology Outsourcing: A Cross-Sectional Analysis. In: Journal of Management Informaton Systems 9 (1992) 1, pp. 7–24.Google Scholar
  28. [Malk99]
    Malkamäki, Markku: Are there Economies of Scale in Stock Exchange Activites? Bank of Finland Discussion Papers, 1999.Google Scholar
  29. [MeBo92]
    Merton, Robert C.; Bodie, Zvi: On the Management of Financial Guarantees. In: Financial Management 21 (1992) Winter 1992, pp. 87–109.Google Scholar
  30. [MePe93]
    Merton, Robert C.; Perold, André F.: Theory of Risk Capital in Financial Firms. In: Journal of Applied Corporate Finance 6 (1993) 3, pp. 16–32.Google Scholar
  31. [MuWi83]
    Murray, John D.; White, Robert W.: Economies of Scale and Economies of Scope in Multiproduct Financial Institutions: A Study of British Columbia Credit Unions. In: Journal of Finance 38 (1983), pp. 887–902.Google Scholar
  32. [PaWi81]
    Panzar, John C.; Willig, Robert D.: Economies of Scope. In: The American Economic Review 71 (1981), pp. 268–272.Google Scholar
  33. [Pero01]
    Perold, André F.: Capital Allocation in Financial Firms. Harvard Business School, Competition & Strategy Working Paper Series, 2001.Google Scholar
  34. [PoZe98]
    Poppo, Laura; Zenger, Todd: Testing Alternative Theories of the Firm: Transaction Cost, Knowledge Based, and Measurement Explanations for Make-or-Buy Decisions in Information Services. In: Strategic Management Journal 19 (1998), pp. 853–877.Google Scholar
  35. [QuHi94]
    Quinn, James Brian; Hilmer, Frederick G.: Strategic Outsourcing. In: Sloan Management Review 35 (1994) 4, pp. 43–55.Google Scholar
  36. [Rica 62]
    Ricardo, David: On the principles of political economy and taxation. In: Straff, P. (ed.): Works and Correspondence of David Ricardo. Cambridge University Press, Cambridge 1962, pp. 62–71.Google Scholar
  37. [RiSa99]
    Ripin, Kathy M.; Sayles, Leonard R. (ed.): Insider Strategies for Outsourcing Information Systems. Oxford University Press, 1999.Google Scholar
  38. [SaGH97]
    Saunders, Carol; Gebelt, Mary; Hu, Qing: Achieving success in information systems outsourcing. In: California Management Review 39 (1997) 2, pp. 63–79.Google Scholar
  39. [Salm02]
    Salmony, Michael: Veränderungen der Wirtschaftsstrukturen durch E-Commerce. In: Lehmann, M. (ed.): Electronic Business in Europa — Internationales, Europäisches und Deutsches Online-Recht. C. H. Beck Verlag, München 2002, pp. 1–17.Google Scholar
  40. [Sch+02]
    Schmiedel, Heiko; Malkamäki, Markku; Tarkka, Juha: Economies of scale and technological developmen in securities depository and settlement systems. Bank of Finland Discussion Papers, 2002.Google Scholar
  41. [Shar64]
    Sharpe, William F.: Capital Asset Pricing: A Theory of Market Equilibrium under Conditions of Risk. In: The Journal of Finance 19 (1964) 3, pp. 425–442.Google Scholar
  42. [Stef02]
    Steffens, Udo: Chancen und Risiken der deutschen Banking Finance-Branche — eine strategische Analyse. In: Steffens, Udo; Achenbach, Wieland (ed.): Strategisches Management bei Banken. Frankfurt am Main 2002, pp. 79–104.Google Scholar
  43. [Stig51]
    Stigler, George J.: The division of labor is limited to the extent of the market. In: Journal of Political Economy 59 (1951) 3, pp. 185–193.Google Scholar
  44. [TaDr01]
    Tayles, Mike; Drury, Colin: Moving from Make/Buy to Strategic Sourcing: The Outsource Decision Process. In: Long Range Planning 34 (2001), pp. 605–622.Google Scholar
  45. [WaNi00]
    Wahrenburg, Mark; Niethen, Susanne: Portfolioeffekte bei der Kreditrisikomodellierung. In: Johanning, Lutz; Rudolph, Bernd (ed.): Handbuch Risikomanagement, Bd. 2. Uhlenbruch, Bad Soden/Ts. 2000, pp. 491–524.Google Scholar
  46. [WaWe87]
    Walker, Gordon; Weber, David: Supplier Competition, Uncertainty, and Make-Or-Buy Decisions. In: Academy of Management Journal 30 (1987), pp. 589–596.Google Scholar
  47. [Will75]
    Williamson, Oliver E. (ed.): Markets and Hierarchies: Analysis and Antitrust Implications. Free Press, New York 1975.Google Scholar
  48. [Will79]
    Williamson, Oliver E.: Transaction-cost economics: the governance of contractual relations. In: Journal of Law and Economics 22 (1979), pp. 233–261.Google Scholar
  49. [Will81]
    Williamson, Oliver E.: The Economics of Organization: The Transaction Cost Approach. In: American Journal of Sociology 87 (1981) 3, pp. 548–577.Google Scholar
  50. [Will85]
    Williamson, Oliver E. (ed.): The Economic Institutions of Capitalism. Free Press, New York 1985.Google Scholar
  51. [Zmud98]
    Zmud, Robert W.: Editor’s comments. In: MIS Quarterly 22 (1998) 2, pp. xxix–xxxii.Google Scholar

Copyright information

© Springer Fachmedien Wiesbaden GmbH 2005

Authors and Affiliations

  • Markus Holzhäuser
    • 1
  • Markus Lammers
    • 1
  • Felix Schwarze
    • 1
  1. 1.E-Finance LabJohann Wolfgang Goethe-UniversitätFrankfurt am MainDeutschland

Personalised recommendations