Exploring the Impact of Fit between Context Factors and Pricing Model Choice on the Success of IT Outsourcing Mega-Deals

The interplay between internal and external contextual factors and pricing model choice in IT outsourcing (ITO) contracts is still an under-researched area in the ITO literature. However, as past and current examples of outsourcing failures indicate, an informed selection of an adequate pricing model indeed plays a crucial, if not decisive role to ensure a successful deal outcome and to mitigate risks in the wake of the deal. Based on contingency theory, the paper at hand explores 60 ITO megadeals (\u3e EUR 50 million) for the impact of the alignment of business objectives and market factors with pricing model choice on ITO deal performance. Our empirical results, which were based on a fitas- gestalts conceptualization, suggest that a high congruence of business objectives and market characteristics with pricing model attributes in ITO contracts engender better cost control and service results and a higher level of satisfaction after ITO deals than a low congruence of these factors. Our findings offer several interesting implications that can be used to improve pricing configurations in ITO deal contracts

IT Feature Use over Time and its Impact on Individual Task Performance

Although anecdotal evidence in organizations and research studies suggest that the functional potential of installed IT applications is underutilized and that most users apply just a narrow band of features, there is still little understanding about the nature and implications of change in IT feature use (ITFU) over time. Drawing on technology capability broadening-deepening and IT skill acquisition literatures, this study investigates how IT use—conceptualized at the IT feature level—evolves over time and how it affects continual and distal task performance during the initial usage of an IT application. The results of two longitudinal panel studies of 330 and 314 IT users show that, when users start using an IT application for task accomplishment, ITFU increases nonlinearly over time with diminishing growth rates. At early stages of system use, users predominantly extend their ITFU to become more familiar with the system’s feature potential, while, at later stages, when users have increasingly recognized a match between the requirements of a work task and system features, they focus more heavily on leveraging a stable subset of IT features to benefit from task completion. As such, the magnitude in broadening and deepening capabilities in using IT features decreases over time. Moreover, both studies reveal that growth in ITFU has, in and of itself, significant impacts not only on immediate performance perceptions but also on more delayed, objective task performance. Researchers will benefit from the study results by better understanding the dynamics of individual ITFU and their performance implications. Managers striving to encourage users to expand their IT feature repertoire may use the results to conduct experiencebased feature upgrades or training programs

Can technology stress at work impair partnerships at home?

IT-driven stress spills over from work to home and can not only impair but also improve employees’ partnerships, writes Alexander Benlia

Perceptual Congruence between IS Users and Professionals on IS Service Quality – Insights from Response Surface Analysis

Despite the importance of matching different viewpoints on IS service quality in organizations, there is still little understanding about how perceptual congruence between IS professionals and users affects user satisfaction. Drawing on cognitive dissonance theory and perceptual congruence research, our study examines 169 matched-pair survey responses using polynomial regression and response surface analysis. We demonstrate that perceptual congruence on IS service quality between IS professionals and users can have a nonlinear relationship with user satisfaction. We find that greater perceptual congruence is associated with higher user satisfaction and that user satisfaction increases when congruent perceptions of both IS professionals and users are high compared to when they are low. Moreover, the rate in the decrease of user satisfaction away from perfect congruence is dependent on the direction of incongruence, highlighting the importance of developing awareness of congruent perceptions to increase user satisfaction. Implications for research and practice are discussed

A transaction cost theoretical analysis of software-as-a-service (SAAS)-based sourcing in SMBs and enterprises

This study seeks to better understand the factors contributing to the adoption of Software as a Service (SaaS) as on-demand sourcing option. Grounded in transaction cost theory (TCT), we developed a research model for assessing SaaS-sourcing at the application level. Four hypotheses with three TCTbased constructs (application specificity, environmental uncertainty, and usage frequency) and one contingency factor (firm size) affecting the adoption of SaaS-based sourcing were formulated. Survey data of 154 firms in Europe with 284 response items across different industries were collected to test the theoretical model. PLS-based structural equation modeling demonstrated that uncertainty emerges as the strongest factor for SaaS-adoption, while application specificity also contributes significantly. Differentiating between small and medium-sized businesses (SMBs) and enterprises, uncertainty represents the strongest driver for SaaS-adoption in SMBs, whereas application specificity is more important in enterprises. Finally, firm size is significantly and negatively associated with SaaS-based sourcing within, but not across the subgroups of SMBs and enterprises

The Adoption of and Satisfaction with Web2.0 Based Collaboration and Knowledge Management Technologies in Global Software Development – Insights from an Empirical Study

The paper at hand presents findings of a survey- and case study based investigation of using innovative Web2.0 collaboration and knowledge management technologies in the software development process of global companies. While the empirical study shows that adoption rates are already considerably high, the satisfaction with using Web2.0 technologies and the resulting success highly depend on the adoption speed as well as on the mastery of special operating capabilities within the local IT and product development departments. In addition to these quantitative and survey-based findings, 3 case examples shed light on specific application scenarios of Web2.0 collaboration and knowledge management applications in different industries. Besides the exemplary illustration of where these innovative web technologies can support global software development processes, economic and strategic benefits of introducing them are highlighted

The Whole is Greater than the Sum of its Parts – Synergies between Non-Digital and Digital Business Models within Companies

Digital transformation is increasingly becoming a major concern for established companies. Part of the digital transformation is often the creation of new business models based on digital technologies, which do not replace the established business model but act as additional source of revenue. Two concurrent business models within one company creates the opportunity of synergies between these business models. However, knowledge on interactions between two business models, specifically digital and non-digital, remains in an embryonic stage. This multi-case study, based on companies from various industries and size, addresses this shortcoming. Following the business model canvas and the theories of resource relatedness and complementarity, we show how both business models can propel each other thanks to value and cost synergies between them. Finally, we offer rich insights for practitioners on what type of synergies they can benefit from and present guidelines they can use to identify and unlock these synergies

Understanding Informal Control Modes on Software Platforms – The Mediating Role of Third-Party Developers’ Intrinsic Motivation

Software ecosystem platforms such as Google’s Play Store or Apple’s App Store rely heavily on highly motivated third-party developers who are eager to invest their time and effort into developing and updating apps for platforms. Platform owners are challenged to find a balance between developers’ need for autonomy and a platform’s integrity. Despite the widely acknowledged importance of informal control modes in such contexts, limited empirical work exists on how and why clan and self-control affect developers’ behaviors and performance outcomes on software platforms. Drawing on control theory and motivation literature, we conducted an online survey with 230 Android developers to examine how developers’ intrinsic motivation mediates the effects of informal control modes on developer performance. Our findings show that while intrinsic motivation plays an important role in mediating both informal control modes’ effects, clan control exhibits predominantly stronger downstream effects than self-control. Implications for research and practice are discussed

Buying under Pressure: Purchase Pressure Cues and their Effects on Online Buying Decisions

Although purchase pressure cues (PPC) that signal limited time (LT) or limited product availability (LPA) are widely used features on e-commerce websites to boost sales, research on whether and why PPCs affect consumers’ purchase choice in online settings has remained largely unexplored. Drawing on the Stimulus-Organism- Response (S-O-R) model, consumer decision-making literature, and prospect theory, we conducted a controlled lab experiment with 121 subjects in the context of Deal-ofthe- Day (DoD) platforms. We demonstrate that while LT pressure cues significantly increase deal choice, LPA pressure cues have no distinct influence on it. Furthermore, our results show that perceived stress and perceived product value serve as two serial mediators explaining the theoretical mechanism of why LT pressure cues affect deal choice. Complementary to these results, we provide evidence that higher perceived stress is accompanied by significant changes in consumers’ physiological arousal. Further theoretical and practical implications of our findings are discussed