The Normative Value of Transaction Cost Economics in IT Outsourcing

Laura Poppo and Mary C. Lacity

Chapter 3 in Information Systems and Outsourcing, 2009, pp 88-112 from Palgrave Macmillan

Abstract: Abstract In the previous chapter, Lacity and Willcocks found that 61 actual IT outsourcing (ITO) decisions did not map well to Transaction Cost Economics (TCE). Our findings were initially written in 1995 when large scale ITO decisions were still novel. As time progressed, other researchers found better results with ITO tests of TCE propositions. For example, Poppo and Zenger (1998) found that asset specificity and measurement accuracy did have the effects on ITO as predicted by TCE (although uncertainty did not). In 2002, Lacity and Poppo began discussing their TCE results in the context of ITO. This chapter is the result of that collaboration.

Keywords: Service Level Agreement; Vertical Integration; Information Disclosure; Relational Norm; Strategic Management Journal (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59483-8_3

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DOI: 10.1057/9780230594838_3

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