IT Outsourcing Strategies: Universalistic, Contingency, and Configurational Explanations of Success

Jae-Nam Lee (), Shaila M. Miranda () and Yong-Mi Kim ()
Additional contact information
Jae-Nam Lee: School of Business IT, Kookmin University, 861-1, Jeungreung-Dong, Songbuk-Gu, Seoul, 136-702 Korea, and Department of Information Systems, The City University of Hong Kong, 83 Tat Chee Avenue, Kowloon, Hong Kong
Shaila M. Miranda: Management Information Systems Division, University of Oklahoma, Norman, Oklahoma 73019
Yong-Mi Kim: Management Information Systems Division, University of Oklahoma, Norman, Oklahoma 73019

Information Systems Research, 2004, vol. 15, issue 2, 110-131

Abstract: Focus on individual outsourcing decisions in IT research has often yielded contradictory findings and recommendations. To address these contradictions, we investigate a holistic, configurational approach with the prevailing universalistic or contingency perspectives in exploring the effects of IT outsourcing strategies on outsourcing success. Based on residual rights theory, we begin by identifying three dimensions of IT outsourcing strategies: degree of integration, allocation of control, and performance period. We then develop a model of fit-as-gestalt, drawing from literatures on strategy, governance, interorganizational relationships, and outsourcing.Next, based on data from 311 firms in South Korea, we test universalistic and contingency perspectives in explaining the relationship between IT outsourcing strategies and outsourcing success. We then identify three congruent patterns, or gestalts, of IT outsourcing strategies. We term these strategies independent, arm's-length , and embedded strategies. To establish the predictive validity of these gestalts and the viability of a configurational perspective, we then explore the effects of these congruent gestalts vis-à-vis noncongruent patterns on three dimensions of outsourcing success: strategic competence , cost efficiency , and technology catalysis . We also contrast the effects of each of the three gestalts on each of the three dimensions of outsourcing success. Our findings indicate the superiority of the configurational approach over universalistic and contingency perspectives in explaining outsourcing success.

Keywords: IT outsourcing; outsourcing success; fit; congruence; strategy; knowledge sharing; arm's-length; embeddedness; partnership (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
http://dx.doi.org/10.1287/isre.1040.0013 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orisre:v:15:y:2004:i:2:p:110-131

Access Statistics for this article

More articles in Information Systems Research from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().