The Sourcing of Application Software Services: Empirical Evidence of Cultural, Industry and Functional Differences

Abstract

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.