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Combining transaction cost and resource-based insights to explain IT implementation outsourcing

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  • Emilio Alvarez-Suescun

    (Universidad Complutense de Madrid)

Abstract

This empirical work aims to shed some light on the governance choice for information technology (IT) outsourcing decisions. By combining transaction cost and resource-based arguments, we explain the role that some economic and strategic factors as well as their relationships may play. Hypotheses are tested for the implementation of an HR software application with primary data collected from large Spanish firms. Findings seem to provide more support for resource-based arguments than for transaction-cost propositions. Thus, our results suggest that cumulative knowledge from either coordination and interaction between internal units or experience in IT outsourcing is not a significant factor unless the organization is able to develop a strategic capability. Unlike for technology specificity, no evidence was found for the significance of behavioral uncertainty and strategic contribution.

Suggested Citation

  • Emilio Alvarez-Suescun, 2010. "Combining transaction cost and resource-based insights to explain IT implementation outsourcing," Information Systems Frontiers, Springer, vol. 12(5), pages 631-645, November.
    • Handle: RePEc:spr:infosf:v:12:y:2010:i:5:d:10.1007_s10796-010-9237-1
    DOI: 10.1007/s10796-010-9237-1
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    2. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.
    3. Mazza Tatiana & Azzali Stefano, 2014. "Determinants of Information Technology Outsourcing," Scientific Annals of Economics and Business, Sciendo, vol. 61(1), pages 1-15, July.

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