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Decision-Making Factors for Outsourcing at the JEU

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In the Jordan energy sector, ABB succeeded in winning full-service contracts with utilities and industries in Europe. The wholesale prices in the energy sector have increased which has been driving the end-user prices high. The opportunities for cost-savings at the procurement stage have reduced and there is a general upward price trend. To control the energy costs, energy utility outsourcing is emerging as a demand management solution but in Jordan, the organizational culture can pose a barrier to the effective implementation of the outsourcing strategy. Energy utility outsourcing can save a company a substantial amount of their energy costs.

The core competencies involved in selling energy and delivering value-added services are not the same. Management in Jordan is affected by the culture and the way of life. It is different from other typical western countries. Several characteristics of Jordanian management include the importance of status over ability, a rigid hierarchy, the strength of kinship ties in decision making and reactive management (Smith, 1987). While the managers in Jordan have been exposed to western education and management styles, the objectives of managers have not changed much.

Economic growth is not the driving force in bringing about industrial development. The attitude in Jordan is not towards an investment in the future. As the per capita power consumption in Jordan has increased, it has led to an increase in the demand. This change in situation suggests the need for reassessment of the future needs and strategy to enhance the capacity and the distribution system. However, the current rituals and practices at JEU is a barrier to growth and development. Based on the above rationale, the research aims and objectives are: - To determine how service business is handled at JEU, -To determine the current process of outsourcing decision making at JEU, - To determine the effect of culture on decision making, - To determine the desired relationship that any organization would seek an outsourcing agreement.

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