The Sourcing of Application Software Services

The field of Information Systems (IS) outsourcing has drawn considerable attention among scientists and practitioners for the past fifteen years. The present book analyses why organizations insource or outsource IS functions - - specifically the development and maintenance of software applications. Concepts from transaction cost theory, resource-based theory, incomplete contracts theory, the theory of planned behaviour, and cross-cultural research are integrated into a coherent framework that recognizes the economic, strategic, and social dimension of the IS sourcing decision. This framework is specified in a research model and empirically tested across countries (Germany versus USA), industries (Machinery versus Finance) and IS functions (Application Software Development versus Maintenance) using the partial least squares (PLS) approach of structural equation modelling. The book thereby provides theoretically and empirically grounded insights into the reasons and implications of the IS sourcing decision.

Contenu

1 Introduction.- 1.1 Problem Statement.- 1.2 Research Focus and Objectives.- 1.3 Overview of Research Methodology.- 1.4 Study Organization.- 2 Theoretical Framework on Information Systems Sourcing.- 2.1 The Nature of the Information Systems Sourcing Decision.- 2.1.1 Definition of Core Concepts.- 2.1.1.1 Information Systems Function.- 2.1.1.2 Sourcing.- 2.1.2 Main Components of Sourcing Decision.- 2.1.2.1 The Phase-theorem.- 2.1.2.2 Applying the Phase-theorem.- 2.1.3 Framing the Sourcing Decision into a Variance Theory.- 2.1.3.1 Variance versus Process Theory.- 2.1.3.2 Structural Elements of a Variance Theory.- 2.2 Analysis and Selection of Theoretical Lenses.- 2.2.1 Literature Review.- 2.2.1.1 Theoretical and Methodological Diversity.- 2.2.1.2 Theoretical Challenges.- 2.2.2 The Theory of the Firm.- 2.2.2.1 Neoclassics, Industrial Economics and Gutenberg.- 2.2.2.2 Behavioralism.- 2.2.2.3 New Institutional Economics.- 2.2.2.4 Dynamic Theories.- 2.2.3 From Innovation Diffusion to Attitude-Behavior Approaches.- 2.2.4 Summary of Selection Process.- 2.3 Hypotheses from Selected Theoretical Lenses.- 2.3.1 Transaction Cost Theory.- 2.3.1.1 Production and Transaction Costs.- 2.3.1.2 Comparative Cost Advantages.- 2.3.1.3 Integrating Behavioral Antipodes of Opportunism.- 2.3.1.4 Overview.- 2.3.2 Resource-based Theory.- 2.3.2.1 Information Systems Resources and Impacts.- 2.3.2.2 Comparative Advantage in Strategic Contribution.- 2.3.2.4 Comparative Advantage in Operational Contribution.- 2.3.2.5 Comparative Advantage in Sustained Systemic Impact.- 2.3.2.6 Comparative Advantage in Resources.- 2.3.2.7 Overview.- 2.3.3 Incomplete Contracts Theory.- 2.3.3.1 Cost-Benefit Dilemma of Compensating Incomplete Contracts.- 2.3.3.2 Institutional Safeguards through Ownership.- 2.3.4 Theory of Planned Behavior.- 2.3.4.1 Nexus between Individual and Organizational Behavior.- 2.3.4.2 Attitudes, Subjective Norm and Behavioral Control.- 2.3.4.3 Overview.- 2.3.5 Synthesis of Theoretical Concepts.- 2.4 Complementary Hypotheses from Selected Cultural Dimensions.- 2.4.1 Definition of Culture.- 2.4.2 Selection of Cultural Dimensions.- 2.4.2.1 Inductive Selection.- 2.4.3.2 Deductive Selection.- 2.4.3 Impact of Selected Cultural Dimensions.- 2.4.3.1 Individualism-Collectivism.- 2.4.3.2 Long-term Versus Short-term Orientation.- 2.4.3.3 Directive Control.- 2.4.4 Extended Mid-range Theoretical Framework on IS Sourcing.- 3 Empirical Test of Sourcing Model.- 3.1 Structural Equation Modeling.- 3.1.1 Ways of Model Specification.- 3.1.2 Estimation Procedures.- 3.1.3 Evaluation Procedures.- 3.1.4 Applicability.- 3.2 Operationalization of Constructs.- 3.2.1 Outsourcing Behavior and Attitude Variables.- 3.2.2 Comparative Advantage Variables at the Organizational Level.- 3.2.3 Comparative Advantage Variables at Worker Level.- 3.2.4 Contextual Variables.- 3.3 Data Collection.- 3.4 Sample Characteristics.- 3.5 Model Estimation and Evaluation.- 3.5.1 Measurement Model.- 3.5.2 Structural Model.- 3.5.2.1 Overall Model Evaluation.- 3.5.2.2 Hypotheses Testing.- 3.6 Overview.- 4 Discussion of Model Findings.- 4.1 Commonalities between Groups.- 4.2 Group Differences.- 4.2.1 Germany versus USA.- 4.2.2 Machinery versus Finance Industry.- 4.2.3 Application Development versus Maintenance.- 4.3 Theoretical Implications.- 4.4 Practical Implications.- 4.5 Study Limitations.- 4.6 Future Research.- 5 Conclusion.- Appendix A: Literature Sources on Information Systems Outsourcing.- Appendix B: Research Approaches.- Appendix C: Cover Letters.- C.1 Initial Cover Letter in English.- C.2 Follow-up Cover Letter in English.- C.3 Initial Cover Letter in German.- C.4 Follow-up Cover Letter in German.- Appendix D: Questionnaires.- D.1 Questionnaire in English.- D.2 Questionnaire in German.- List of Figures.- List of Tables.- Literature.