An Integrative Framework for Strategic Global IT Research: Assessing the Nexus of Key Factors

Despite the need for management to be able to identify the enablers and/or inhibitors of IT success on a global scale, past global IT research has failed to create a sound and comprehensive framework of its own; one which can guide inquiry by researchers in an organized and systematic manner (Palvia 1998). While previous frameworks have been developed (Deans and Ricks 1991; Ein-Dor et al 1993; Nelson and Clark 1994; Cummings and Guynes, 1994; and Gallupe and Tan, 1999), none of them have been accepted universally. The purpose of this paper is to examine the different frameworks previously suggested for global IT research in cumulative manner. By explicating and integrating all dimensions from these past frameworks, we provide a more comprehensive system for identifying new areas of research. More importantly, it provides the basis for reflecting on what should constitute the key dependent variables given a particular mix of independent variables

Economic, systemic, and environmental influences on the sourcing of application services : a comparative study of German and US companies

This study examines the question on why firms outsource particular information systems (IS) functions to varying degrees. It is the first to simultaneously examine three theoretical perspectives that represent different rationales for and against IS outsourcing. The first of these perspectives is new to the IS outsourcing literature. It acknowledges the systemic character of the IS function, i.e. that IS performance critically depends on various sub-functions working together effectively. Such systemic influences may be affected through outsourcing particular IS functions. Accordingly, they are considered as determinants that reflect the extent to which systemic influences are better recognized through in-house as opposed to external service provisioning. In order to examine the relative importance of systemic influences in the outsourcing decision they are contrasted against two more established ones; the one holds that the outsourcing decision is based on a cost comparison including production and transaction costs (efficiency); the other recognizes the fact that outsourcing decisions are often influenced by environmental forces as reflected by the opinion of influential stakeholders and the level of control (i.e. power) that an organization has over the decision. Additionally, this study is the first to formulate hypotheses ex ante on the moderating influence of cross-cultural differences on IS outsourcing determination. A questionnaire survey was conducted including 180 companies in the United States and Germany. The results revealed that efficiency considerations and the opinions of external stakeholders were significant determinants of IS outsourcing in both countries, though productions costs were more strongly considered than transaction costs. As hypothesized, no statistically significant differences between countries could be detected regarding the impact of these three factors. In contrast, the consideration of two types of systemic influences varied significantly between countries confirming our hypotheses that systemic influences are cross-culturally sensitive. In addition, the impact of outsourcing control was statistically significant between countries confirming cross-cultural influences. The results reveal a number of theoretical and practical implications

Systemic, economic, and environmental influences on the sourcing of application services : a comparison of companies in Germany and the United States

This paper examines three different rationales that might influence a company’s decision of whether to outsource particular information systems (IS) functions within a cross-cultural context. The first of these rationales acknowledges the systemic nature of the IS function i.e. that it is critical for various IS sub-functions and components to work together effectively for the overall IS performance. This perspective is new to IS outsourcing literature. We consider whether and how such systemic effects are factored into a decision to outsource IS sub-functions such as applications development and maintenance. In order to examine the importance of this new perspective, we contrast it with two established ones. The first of these assumes the outsourcing decision is based on a rational cost comparison, including production and transaction costs. The second assumes environmental forces frequently influence outsourcing decisions, as reflected in the opinion of influential stakeholders and the level of discretion in decision-making. This study also explores whether the relevance of determinants in IS outsourcing is influenced by cross-cultural dimensions. This is empirically examined using data from companies based in the United States and companies based in Germany. While cost factors and the opinion of external stakeholders are significant determinants of IS outsourcing for both countries, the countries differ significantly in how the systemic impact of an IS function and the systemic views of IS professionals are factored into the sourcing decision. In addition, the impact of outsourcing decision-making discretion was found to differ significantly between countries. These differences support our perspective that cultural dimensions, such as differences between the United States and Germany in the individualism-collectivism rating as well as in the legitimized bargaining power of labor interest groups, exert a moderating impact on a company’s decision to outsource

Testing The Moderated And Mediated Impact Of Human Asset Specificity On The Sourcing Of Application Software Services

The question concerning the circumstances under which it is advantageous for a company to outsource certain information systems functions has been a controversial issue for the last decade. While opponents emphasize the risks of outsourcing based on the loss of strategic potentials and increased transaction costs, proponents emphasize the strategic benefits of outsourcing and high potentials of cost-savings. This paper brings together both views by examining the conditions under which both the strategic potentials as well as savings in production and transaction costs of developing and maintaining software applications can better be achieved in-house as opposed to by an external vendor. We develop a theoretical framework from three complementary theories and test it empirically based on a mail survey of 139 German companies. The results show that insourcing is more cost efficient and advantageous in creating strategic benefit through IS if the provision of application services requires a high amount of firm specific human assets. These relationships, however, are partially moderated by differences in the trustworthiness and intrinsic motivation of internal versus external IS professionals. Moreover, capital shares with an external vendor can lower the risk of high transaction costs as well the risk of loosing the strategic opportunities of an IS

Systemic Determinants of the Information Systems Outsourcing Decision: A Comparative Study of German and United States Firms

The practice of information systems (IS) outsourcing is widely established among organizations. Nonetheless, evidence suggests that organizations differ considerably in the extent to which they deploy IS outsourcing. This variation has motivated research into the determinants of the IS outsourcing decision. Most of this research is based on the assumption that a decision on the outsourcing of a particular IS function is made independently of other IS functions. This modular view ignores the systemic nature of the IS function, which posits that IS effectiveness depends on how the various IS functions work together effectively. This study proposes that systemic influences are important criteria in evaluating the outsourcing option. It further proposes that the recognition of systemic influences in outsourcing decisions is culturally sensitive. Specifically, we provide evidence that systemic effects are factored into the IS outsourcing decision differently in more individualist cultures than in collectivist ones. Our results of a survey of United States and German firms indicate that perceived in-house advantages in the systemic impact of an IS function are, indeed, a significant determinant of IS outsourcing in a moderately individualist country (i.e., Germany), whereas insignificant in a strongly individualist country (i.e., the United States). The country differences are even stronger with regard to perceived in-house advantages in the systemic view of IS professionals. In fact, the direction of this impact is reversed in the United States sample. Other IS outsourcing determinants that were included as controls, such as cost efficiency, did not show significant country differences

A Critical Look at Partial Least Squares Modeling

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Changes in Post-Adoption Use of Information Systems

As organizations continue to invest heavily in Information Systems (IS) to support business processes, the under-utilization of such IS is a key concern that challenges efforts to exploit its benefits. What is most desirable is for users to engage in forms of deep use that effectively leverage the features of the IS for work tasks. But, too often users minimize their interactions with the IS. Yet for users how they use an IS often changes over time to become progressively deeper as the IS is embedded more in the performance of various tasks. To understand how IS use changes over time, this research-in-progress paper draws on principles of evolutionary change, that is, Generalized Darwinism, and reports the findings from a series of case studies

Measuring Student Learning: An Empirical Solution with Implications for IS Education and Beyond

As we enter the twenty-first century, the organizational role of IS continues to expand and evolve at a dizzying pace. An understanding of and appreciation for that role is becoming mandatory for all managers and executives, not just IS professionals. This paper first determines a generally agreed upon high-level conceptualization of the strategic role IS plays in organizations. It then proceeds to develop and empirically test an instrument designed to measure college students' normative perception of that role. The contributions are twofold. First, the instrument can be used as an indicator of educational quality by assessing the extent to which a concept has crystallized within students (deep learning), as opposed to short-term retention and recall (surface learning). This has immediately applicable implications for designing MIS curricula and learning materials and, more widely, in e-Learning in general, where feedback loops allow interaction to be adjusted and refocused in process based on progress toward established goals like, in this case, the recognition of underlying principles. Second, the instrument can be used to help evaluate how well future business managers and executives truly understand and recognize the value of IS to the organization. This has long-term implications for organizational productivity

Toward a Process-Based View of Information Technology Acceptance

Research into the acceptance of technology is in need of an alternative approach. Despite repeated calls for research to guide our colleagues-in-practice in the deployment of systems that are accepted, there has yet to be systematic research into the relationship between the decisions made by individuals and the bottom-line impact that is derived from user acceptance. This study fills the gap in the literature by theorizing a process-based view of information technology (IT) acceptance. We report on a narrative study of 30 users of an ERP deployment and, analyzing this qualitative data through the lens of the five decisions of acceptance proposed by Schwarz and Chin, propose a process model of IT acceptance. We conclude by theorizing on the relationship between these structures and the corresponding bottom-line impacts

Robbing Peter to Pay Paul: The OtherSide of Group Support Systems

That Group Support Systems (GSS) can enhance group performance appears to be the case. However, GSS research has drawn heavily from a rational perspective, one that may not be able to comprehend the full range of phenomena at play in group meetings. Although a social perspective may provide greater explanatory power, little has been done to investigate GSS phenomena from this viewpoint. This paper considers more fully the social impacts of GSS by varying levels of GSS restrictiveness and assessing the effect that this may have on group cohesiveness. We find that groups in the more restrictive treatment experienced lower perceived cohesiveness than did those in the non-restrictive treatmen