Component developers, application assemblers, and customers must all know CBSD advantages and disadvantages before developing components and component-based applications.

Until recently, anecdotal evidence could only suggest CBSD superiority in requirements identification. Here is a set of testable hypotheses to help distinguish hype from fact.

Component-based development (CDB) promises to reduce complexity and cost of software development and maintenance through reuse. For CBD to be successful, a vibrant market for commercial business components is essential. One of the key requirements of an active market for business components is an effective scheme for classifying and describing them at various levels of detail, as well as a corresponding repository for storing and retrieving these components. Such a scheme needs to support various constituents such as business users, managers, and application assemblers. The scheme and repository should help users and managers to select components that match their requirements and aid application assemblers in identifying components most compatible with their deployment environment (such as the platform) and system inputs (such as data types). Drawing from the concepts of group technology and software reuse paradigm, this paper proposes a scheme for classifying and describing business components and the design of a knowledge-based repository for their storage and retrieval. The proposed scheme is implemented in a prototype repository. The effectiveness of the prototype and the underlying classification and coding scheme is assessed empirically through controlled experiments. Results support the assertion that the scheme is effective in enhancing the users' and analysts' ability to find the needed business components.

In this article, we apply transaction cost theory (TCT) and institutional theory to the realm of IS outsourcing. TCT posits that firm's outsourcing governance is influenced by transaction cost factors, namely, bounded rationality, opportunism, and risk. Institutional theory, on the other hand, has been advocated to explain non-choice behavior of organizations in the context of competitors, norms, and professional associations. Although TCT has been used extensively in the extant literature to study outsourcing arrangements, we argue that as IS outsourcing practices propagate in organizational fields, TCT explanations will take a back seat to institutional explanations. We appropriate the transaction cost framework to the IS outsourcing setting and consider when and how firm's decision to adopt outsourcing and corresponding ex-ante screening and ex-post monitoring of the vendor will be influenced by mimetic, normative, and coercive institutional pressures. More specifically, we argue that greater the density and rate of adoption in outsourcing during innovation diffusion and stability stages, the greater the possibility that transaction cost factors will be replaced by institutional factors in explaining firms' governance structures (decision to adopt outsourcing, and corresponding screening and monitoring). Conversely, we posit that when the institutional pressures are relatively weak, TCT better explains the intricacies of IS outsourcing arrangements. In conclusion, future research directions and managerial implications of the institutional environment on IS outsourcing governance are discussed.

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