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ERIC Number: ED545721
Record Type: Non-Journal
Publication Date: 2012
Pages: 165
Abstractor: As Provided
Reference Count: N/A
ISBN: 978-1-2674-4078-5
Governance Methods Used in Externalizing Information Technology
Chan, Steven King-Lun
ProQuest LLC, D.B.A. Dissertation, Cleveland State University
Information technology (IT) is the largest capital expenditure in many firms and is an integral part of many organizations' strategies. However, the benefits that each company receives from its IT investments vary. One study by Weill (2004) found that the top performer in the sample was estimated to have as high as a 40% greater return on its IT investment than its competitors. To expedite the progress toward getting better value from IT investments, along with the need to deal with the increasing complexity and expense of IT, a growing number of companies are turning to outside service providers to develop and/or manage various aspects of their information systems. The governance methods used by firms to maintain control over the quality, services, and cost of IT outsourcing are the focus of this dissertation. Previously in the literature, researchers have looked into the phenomenon of outsourcing from various perspectives. However, existing literature has not constructed or proposed an outsourcing model that examines the important moderating impact of internal technical capabilities to governance mechanisms. Building on existing literature related to IT outsourcing, this dissertation examines governance mechanisms that were used by firms to maintain control over the quality, services, and the cost of outsourcing of IT in order to identify their contribution to the success of IT outsourcing initiatives from the perspective of managers whose companies have engaged in IT outsourcing. In this dissertation, a research model was developed, and through an on-line survey instrument, data were collected from the members of the Information Systems Community of Practice in the Project Management Institute. The findings showed that the following governance mechanisms had positive impact on managerial perceptions of IT outsourcing success: (1) Financial commitment in the form of dedicated asset-specific investments; and (2) attitudinal commitment. This study also confirms the moderation effect that firm technological capabilities have on the relationship between managerial perception of outsourcing success and attitudinal commitment, respectively. Additionally, this study added to the literature in that it found that financial commitment and attitudinal commitment impacts on future business are partially mediated by outsourcing success. Based on the findings of this study, practical application and suggestion for future research are offered. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page:]
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Publication Type: Dissertations/Theses - Doctoral Dissertations
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A