Article2003

The Strategic Outsourcing Decision of IT and eCommerce: The Case of Small Businesses in New Zealand

48 citations0/0 files storedJournal of Information Technology Case and Application Research

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Outsourcing and Supply Chain Management Information Technology Governance and Strategy Information Systems Education and Curriculum Development

Abstract

In New Zealand, small to medium-sized enterprises (SMEs) play a very important role in the economy by their contribution to both employment and gross domestic product. Addressing issues pertinent to SMEs is of paramount importance in driving this sector forward. Information Technology (IT) emerges as one main enabler for SMEs in automating their operations, seeking new opportunities and enhancing their strategic business positioning in local and international markets. However, the inability of SMEs to handle the dynamic nature of IT due to problems inherent in their size, structure and resources, makes it difficult for them to take appropriate decisions to benefit from the IT technologies. The advent of eCommerce (EC) has only compounded this problem. One way out of this complex situation is to outsource the IT and EC technology requirements by the SMEs. This study endeavours to identify the pattern of IT and EC outsourcing issues of SMEs within New Zealand. This research attempts to identify the main driver for IT/EC outsourcing in SMEs as well as to explore the problems of IT outsourcing and makes suggestions for further research in this crucial sector.

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1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 2001Focus Groups in Social Research 1999Electronic Commerce: A Managerial Perspective 1998Transaction Cost Economics: How It Works; Where It is Headed 1996The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions 1991Focus Groups: Theory and Practice 2002Supplier Selection and Assessment: Their Impact on Business Performance

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