Investigating vendors' decision to terminate it outsourcing contracts

ICIS 2009 Proceedings - Thirtieth International Conference on Information Systems

Volumn , Issue , 2009, Pages

  Suang, Heng Cheng ^a   Wenyu, Du ^a   Yuanyue, Feng ^a  

^a NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

Author keywords

Contract termination; IT outsourcing; Vendors' perspective

Indexed keywords

CRITICAL DIMENSION; FIELD SURVEYS; IT OUTSOURCING; POOR PERFORMANCE; SOCIAL RELATIONSHIPS; VENDORS' PERSPECTIVES;

INFORMATION SYSTEMS; REUSABILITY;

OUTSOURCING;

EID: 84870957778     PISSN: None     EISSN: None     Source Type: Conference Proceeding    
DOI: None     Document Type: Conference Paper

References (112)

1. Adams, J.S. "Towards an Understanding of Inequity," Journal of Abnormal and Normal Social Psychology, Volume 67, November 1963, pp. 422-436.
2. Adams, J. S. "Inequity in Social Exchange," in Advances in Experimental Psychology, Academic Press, New York, NY, 1965, pp. 267-299.
3. Aldrich, H. "Resource Dependence and Interorganizational Relations: Relations Between Local Employment Service Office and Social Services Sector Organizations," Administration and Society (7:4), February 1976, pp. 419-454.
4. Allen, D., Kern, T., and Mattison, D. "Culture, Power and Politics in ICT Outsourcing in Higher Education Institutions," European Journal of Information Systems, Volume 11, 2002, pp. 159-173.
5. Alvarez-Suescun, E. "Testing Resource-based Propositions about IS Sourcing Decisions," Industrial Management and Data Systems, (107:6), 2007, pp. 762-779.
6. Anderson, E., and Weitz, B. "The Use of Pledges to Build and Sustain Commitment in Distribution Channels," Journal of Marketing Research, (29:1), Feburary 1992, pp.18-34
7. Ang, S., and Straub, D. "Production and Transaction Economies and IS Outsourcing: A study of the U.S. Banking Industry," MIS Quarterly, (22:4), December 1998, pp. 535-552.
8. Argyres, N.S., Bercovitz, J., and Mayer, K. "Complementarity and Evolution of Contractual Provision: An Empirical Study of IT Service Contracts," Organization Science, (18:1), January-Feburary 2007, pp. 3-19.
9. Aubert, B., Patry, M., and Rivard, S. "Assessing the Risk of IT Outsourcing," Thirty-First Hawaii International Conference on System Sciences, 1998, Volume 6, pp. 685-692. Hawaii: IEEE.
10. Bahli, B., and Rivard, S. "The Information Technology Outsourcing Risk: A Transaction Cost and Agency Theorybased Perspective," Journal of Information Technology, (18:3), 2003, pp. 211-221.
11. Barclay, D., Higgins, C., and Thompson, R. "The Particial Least Squares (PLS) Approach to Causal Modeling: Personal Computer Adoption and Use as An Illustration," Technology Studies, (2:2), 1995, pp. 285-324.
12. Barki, H., Rivard, S., and Talbot, J. "Toward an Assessment of Software Development Risk," Journal of Management Information Systems, (10:2), 1993, pp. 203-25.
13. Barney, J. "Firm Resources and Sustained Competitive Advantage," Journal of Management, (17:1), March 1991, pp. 99-120.
14. Barthelemy, J. "The Hidden Costs of IT Outsourcing," Sloan Management Review, (42:3), Spring 2001, pp. 60-69.
15. Barthelemy, J. "The Seven Deadly Sins of Outsourcing," Academy of Management Executive, (17:2), May 2003, 87-100.
16. Bin, J., Tao, Y., and Feng, B. "Valuate Outsourcing Contracts from Vendors' Perspective: A Real Options Approach," Decision Science, (39:3), August 2008, pp. 383-405.
17. Bo, C. "Flexibility and the Theory of the Firm," International Journal of Industrial Organization, (7:2), June 1989, 179-203.
18. Boonlert, W. "Determinants of IS Sourcing Decisions: A Comparative Study of Transaction Cost Theory versus the Resource-based View," Journal of Strategic Information Systems, (14:4), December 2005, pp. 389-415
19. Caldwell, B. M., & Young, A. E. (2004). Continued Growth Forecast for IT Outsourcing Segments. Gartner.
20. Cata, T., and Raghavan, V. "Lifecycle of Outsourcing Relationships: A Case Study Investigation," Journal of Information Technology Case and Application Research, 2003, pp.11-26.
21. Chalos, P., and Sung, J. "Outsourcing Decisions and Managerial Incentives," Decision Sciences, (29:4), Fall 1998, pp. 901-919.
22. Chin, W. "The Partial Least Squares Approach to Structured Equation Modelling," In Model methods for business research, 1998, pp.295-336, NJ: Lawrence Erlbaum.
23. Chou, D.C. "An Investigation into IS Outsourcing Success: The Role of Quality and Change Management," International Journal of Information Systems and Change Management, (2:2), 2007, pp. 190-204.
24. Churchill, G. "A Paradigm for Developing Better Measures of Marketing Constructs," Journal of Marketing Research, (16:1), Feburary 1979, pp. 64-73.
25. Cohen, J. "A Coefficient of Agreement for Nominal Scales," Education and Psychological Measurement, (20:1), 1960, pp. 37-46.
26. Cowley, S. "J.P. Morgan Scraps RAJ5B IT Deal with IBM," Computerworld, 2004, pp.1-16.
27. Davis, R. "Setting Up and Managing Outsourcing Contracts to Deliver Value and Accommodate Change," Journal of Corporate Real Estate, (6:4), August 2004, pp. 301-307.
28. Dibbern, J., Hirschheim, T., and Jayatilaka, B. "Information System Outsourcing: A Survey and Analysis of the Literature," Database for advances in Information Systems, (35:4), Fall 2004, pp. 6-102.
29. Dowling, G. R., and Mark, U. "Do Customer Loyalty Programs Really Work?" Sloan Management Review, (38:4), Summer 1997, pp. 71-82.
30. Eisenhardt, K. (1989) "Agency theory: An assessment and review," Academy of Management Review, 14 (1): 57-74.
31. El-Ansary, A. I. "Determinants of Power-dependence in the Distribution Channel," Journal of Retailing, (51:2), May 1975, pp. 59-74.
32. Emerson, R. "Power Dependence Relationship," American Sociological Review, (27:1), Feburary 1962, pp. 31-41.
33. Falaleeva, N., and Saunders, C. "Antecedents of Information System Backsourcing," In Hirschheim, R., Heinzl, A. and Dibbern, J., Information Systems Outsourcing, 2006, pp. 83-102, Berlin Germany: Springer.
34. Falk, A., and Fischbacher, U. "A Theory of Reciprocity," Games and Economic Behavior, (54:2), February 2006, pp. 293-315.
35. Gallivan, M., and Oh, W. "Analyzing IT Outsourcing Relationship as Alliances among Multiple Clients and Vendors," The 32nd Hawaii International Conference on System Sciences. Volume 7, 1999, Hawaii.
36. Gilbert, A., and Ricadela, A. "The State of Software," Information Week, 2001
37. Gilley, M., and Abdul, R. "Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance," Journal of Management, (26:4), 2000, pp. 763-790.
38. Ginzberg, A., and Venkatraman, N. "Contingency Perspectives of Organizational Strategy: A Critical Review of Empirical Research," Academy of Management Review, (10:3), July 1985, pp. 421-434.
39. Gottschalk, P., and Solli-Sather, H. "Critical Success Factors from IT Outsourcing Theories: An Empirical Study," Industrial Management and Data, (105:6), 2005, pp. 685-702.
40. Grover, V., Cheon, M., and Teng, J. "The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions," Journal of Management Information System, (12:4), March 1996, pp. 89-116.
41. Hall, R. "The Strategic Analysis of Intangiable Resources," Strategic Management Journal, (13:2), February 1992, pp. 135-144.
42. Hamel, G.A. "Competing for the Future," Harvard Business School Press, 1996, pp. 357.
43. Han, H.S., Lee, J.N., and Seo, Y.W. "Analyzing the Impact of A Firm's Capability on Outsourcing Success: A Process Perspective," Information and Management, (45:1), Janurary 2008, pp. 31-42.
44. Homans, G.C. Social Behavior as Exchange. American Journal of Sociology, (63:6), May 1958, pp. 597-606.
45. Jane, C.L. Outsourcing for Radical Change, 2002, Accenture Institute.
46. Jarvenpass, S.L. "The Effect of Task Demands and Graphical Format on Information Processing Strategies," Management Science, (35:3), March 1989, pp. 285-303.
47. Johnston, H., and Carrico, S. "Developing Capabilities to Use Information Strategically," MIS Quarterly, (12:1), March 1988, pp.37-48.
48. Joshi, K. "The Measurement of Fairness or Equity Perceptions of Management Information Systems Users," MIS Quarterly, (13:3), September 1989, pp. 343-358.
49. Kabanoff, B. "Equity, Equality, Power, and Conflict," Academy of Management Review, (16:2), April 1991, pp. 416-441
50. Keen, P.G.W. "MIS Research: Reference Disciplines and a Cumulative Tradition," in Proceedings of the First International Conference on Information Systems, McLean, E.R. (Ed.), Philadelphia, Pennsylvania, December 1980, pp. 9-18.
51. Kern, T. and Willcocks, L. "Exploring Relationships in Information Technology Outsourcing: The Interacton Approach," European Journal of Information Systems, Volume 11, 2002, pp. 3-19.
52. Kern, T., Willcocks, L., and Heck Relational Trauma: Evidence of a Winner's Curse in ICT Outsourcing. Rotterdam School of Management, 1999, Erasmus University Rotterdam.
53. King, W., and Grover, V. "The Strategic Use of Information Resources: An Exploratory Study," IEEE Transactions in Engineering Management, (38:4), November 1991, pp. 293-305.
54. Koh, C., Ang, S., and Straub, D. "IT Outsourcing Success: A Psychological Contract Perspective," Information System Research, (15:4), December 2004, pp. 356-373.
55. Kotter, J.P. A Force of Change, New York: Macmillians, 1990, pp. 14-33
56. Krueger, W.C. "Software Reuse," ACM Computing Surveys, (24:2), June 1992, pp. 131-183.
57. Labiance, G., Daniel, J.B., and Gary, B. "Social Networks and Perceptions of Intergroup Conflict: The Role of Negative Relationship and Thrid Parties," Academy of Management Journal, (41:1), February 1998, pp. 55-67.
58. Lacity, M.C., and Hirschheim, R. "The Information Systems Outsourcing Bandwagon," Sloan Management Review, (35:1), Fall 1993, pp. 73-86.
59. Lacity, M.C., and Willcocks, L.P. "An Empirical Investigation of Information Technology Sourcing Practices: Lessons From Experience," MIS Quarterly, (22:3), September 1998, pp. 363-408.
60. Lacity, M.C., and Willcocks, L.P. "Inside Information Technology Outsourcing: A State-of-art Report," Templeton Research Paper, 2002.
61. Lacity, M.C., and Willcocks, L.P. "Relationship in IT Outsourcing: A Stakeholder Perspective," in Framing the Domains of IT Management, Projecting the Future, Through the Past. 2000, pp. 355-384, Cincinnati: Pinnaflex.
62. Lawler, E.J. "The Impact of Status Differences on Coalitional Agreements," Journal of Conflict Resolution, (19:2), June 1975, pp. 271-285.
63. Lee, J.N. "The Impact of Knowledge Sharing, Organizational Capability and Partnership Quality on IS Outsourcing Success," Information and Management, (38:5), April 2001, pp. 323-335.
64. Lee, J.N., and Kim, Y. "Effect of Partnership Quality on IS Outsourcing Success: Conceptual Framework and Empirical Validation," Journal of Management Information Systems, (15:4), March 1999, pp.29-61.
65. Lee, J.N., Huynh, M.Q., Kwok, R., and Pi, S. "IT Outsourcing: Past, Present, and Future," Communications of the ACM, (46:5), May 2003, pp. 84-89.
66. Leventhal, G.S. "The Distribution of Rewards and Resources in Groups and Organizations," In L. Berkowitz & W. Walster (Eds.), Advances in experimental social psychology, (Vol. 9, pp. 91-131). 1976, New York: Academic Press.
67. Levina, N., and Ross, J.W. "From the Vendor's Perspective: Exploring the Value Proposition in IT Outsourcing," MIS Quarterly, (27:3), September 2003, pp. 331-364.
68. Likert, R. "A Technique for the Measurement of Attitudes," Archives of Psychology, (22:140), 1932, pp. 55.
69. Loh, L., and Venkatraman, N. "Determinants of Information Technology Outsourcing: A Cross-sectional Analysis," Journal of Management Information Systems, (9:1), Summer 1992a, pp.7-24.
70. Loh, L., and Venkatraman, N. "Diffusion of Information Technology Outsourcing: Influence Sources and the Kodak Effect," Information Systems Research, (3:4), December 1992b, pp. 334-358.
71. Matthew, L. "IT Outsourcing Contracts: Practical Issues for Management," Industrial Management and Data Systems, (96:1), 1996, pp. 15-20.
72. McConnell, C. Microeconomics: Principles, Problems, and Policies, 2005 McGraw-Hill Professional.
73. th European Conference on Information Systems, 2006, London: London School of Economics.
74. Mclellan, K., Marcolin, B., and Paul W.B., "Financial and Strategic Motivation Behind IS Outsourcing," Journal of Information Technology, (10:4), December 1995, pp. 299-321.
75. Miranda, S.M., and Kim, Y.M. "Professional versus Political Contexts: Institutional Mitigation and the Transaction Cost Heuristic in Information Systems Outsourcing," MIS Quarterly, (30:3), March 2006, pp. 725-753.
76. Molm, L.D., Quist, T.M. and Wiseley P.A. "Reciprocal Justice and Strategies of Exchange," Social Forces, (72:1), 1993, pp. 19-44
77. Molm, L.D., Nobuyuki, T., and Gretchen, P. "In the Eye of the Beholder: Procedural Justice in Social Exchange," American Sociological Review, (68:1), February 2003, pp. 128-152.
78. Moore, G., and Benbasat, I. "Developing of An Instrument to Measure the Perceptions of Adopting Information Technology Innovation," Information System Research, (2:3), September 1991, pp. 192-222.
79. Natovich, J. "Vendor Related Risks in IT Development: A Chronology of an Outsourced," Technology Analysis and Strategic Management, (15:4), 2003, pp. 409-419.
80. Ngwenyama, O.K., and Bryson, N. "Making the Information Systems Outsourcing Decision: A Transaction Cost Approach to Analyzing Outsourcing Decision Problems," European Journal of Operational Research, (115:2), June 1999, pp. 351-367.
81. Outlay, C.N. "Resizing Information Systems Personnel After IT Outsourcing: Exploring Psychological Contracts, Violations, and Employee Outcomes," Proceedings of the 2007 ACM SIGMIS CPR conference on Computer personnel research: The global information technology workforce, 2007, pp. 224-227.
82. Overby, S. "Bringing I.T. back home," 2003a, CIO Magazine.
83. Oza, N., and Hall, T. "Difficulties in Managing Offshore Software Outsourcing Relationships: An Empirical Analysis of 18 High Maturity Indian Software Companies," Journal of Information Technology Cases and Applications Research, 2005, pp. 25-39.
84. Patton, S. "Outsourcing Vendor Management," 2005, CIO Magazine.
85. Pfeffer, J., and Salancik, G. The External Control of Organizations: A Resource Dependence Perspective, New York: Harper & Row Publishers, 1978.
86. Prieto-Diaz, R. Status Report: Software Reusablity, IEEE Software, May 1993.
87. Raaija, E., and Van, S. "The Implementation of Customer Profitability Analysis: A Case Study," Industrial Marketing Management, (32:7), October 2003, pp. 573-583.
88. Reichheld, F. "The Microeconomics of Customer Relationships," Sloan Management Review, (47:2), Winter 2006, pp. 73-78.
89. Reichheld, F. "The One Number You Need to Grow," Harvard Business Review, (81:12), December 2003, pp. 46-54.
90. Reichheld, F., and Teal, T. "The Economics of Customer Loyalty," In The Loyalty Effect:The Hidden Force Behind Growth, Profits, and Lasting Value, 1996, pp. 33-62, Boston: Harvard Business Press.
91. Robinson, S.L. "Trust and Breach of the Psychological Contract," Administrative Science Quarterly, (40:3), 1996, pp. 574-599.
92. Rogers-Gillmore, M. "Implications of General versus Restricted Exchange," In K. Cook, Social Exchange Theory 1987, pp.170-189, Newbury Park: Sage Publications.
93. Roy, V., and Aubert, B.A. Resource-based Analysis of IT Sourcing. Databases for Advances in Information Systems (33:2), Spring 2002, pp. 29-40.
94. Saunders, C., Gebelt, M., and Hu, O. Achieving Success in Information Systems Outsourcing, California Management Review (39:2), Winter 1997, pp. 63-79.
95. Seddon, P., Cullen, S., and Willcocks, L.P. "Domberger's Theory of Contracting Applied to IT Outsourcing," In Information Systems and Outsourcing: Studies in Theory and Practice, Chapter 4, Palgrave Macmillan, December 23, 2008
96. Schendel, D., and Hofer, C. Strategic Management: A New View of Business Policy and Planning. Boston: Little, Brown & Company, 1979
97. Shared Xpertise, "EDS pays RAJ135M to quit outsourcing deal," BPO Primer News, 2004
98. Slaughter, S., and Ang, S. "Employment Outsourcing in Information Systems," Communications of the ACM, (39:7), July 1996, pp. 47-54.
99. Swinarski, M., Kishore, R., and Rao, H.R. "Vendor Commitment in an ASP Outsourcing Context: A Comparative Evaluation of the Roles of Power and Partnership," in Rivard, S., and Aubert, B.A., eds., Information Technology Outsourcing: Advances in Management Information Systems, Volume 8, 2003, pp. 189-223.
100. Teng, J., Cheon, M.J. and Grover, V. "Decisions to Outsource Information Systems Functions: Testing a Strategy-Theoretic Discrepancy Model," Decision Science, (26:1), January/February 1995, pp. 75-103.
101. Todd, P., and Benbasat, I. "The Use of Information in Decision Making: An Experimental Investigation of the Impact of Computer-based Decision Aid," MIS Quarterly, (16:3), September 1992, pp. 373-393.
102. Turnbull, P., Ford, D., and Cunningham, M. "Interaction, Relationships and Networks in Business Markets: An Evolving Perspective," Journal of Business and Industrial Marketing, (11:3/4), 1996, pp. 44-62.
103. Tversky, A. and Kahneman, D. "The Framing of Decisions and the Psychology of Choice," Science, (211:4481), 1981, pp. 453-458.
104. Veltri, N.F., and Saunders, C.S. "Antecedents of Information Systems Backsourcing," in Rudy Hirschheim, Armin Heinzl, and Jens Dibbern, eds., Information Systems Outsourcing: Enduring Themes, New Perspectives and Global Challenges (Berlin, Heidelberg: Springer-Verlag, 2006), pp. 83-102.
105. Walker, G., and Weber, D. "A Transaction Cost Apporach to Make-or-Buy Decisions," Administrative Science Quarterly, (29:3), September 1984, pp. 373-391.
106. Wagner, S.M., and Friedl, G. "Supplier Switching Decisions," European Journal of Operation Research, (183:2), December 2007, pp. 700-717.
107. Wang, E.T.G. "Transaction Attributes and Software Outsourcing Success: An Empirical Investigation of Transaction Cost Theory," Information System Journal, (12:2), 2002, pp. 153-181.
108. White, P., and Levine, S. "Exchange as a Conceptual Framework for the Study of Interorganizational Relationships," Administrative Science Quarterly, (5:4), March 1961, pp. 583-601.
109. Whitten, D., and Leidner, D. "Bring IT Back: An Analysis of the Decision to Backsource or Switch Vendors," Decision Science, (37:4), November 2006, pp. 605-622.
110. Whitten, D., and Wakefield R.L. "Measuring Switching Costs in IT Outsourcing Services," Journal of Strategic Information Systems, (15:3), September 2006, pp. 219-248.
111. Williamson, O. E. "The Economic Institutions of Capitalism," New York: Free Press. 1985
112. Zeithaml, V., Berry, L., and Parasuraman, A. "Communication and Control Process in the Delivery of Service Quality," Journal of Marketing, (52:2), April 1988, pp. 35-48.