A transaction cost model of IT outsourcing

Aubert, Benoît A.; Rivard, Suzanne; Patry, Michel

doi:10.1016/j.im.2003.09.001

Cited by 287 publications

(238 citation statements)

References 34 publications

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“…Similarly, Lacity and Willcocks (1995) and Loebbecke and Huyskens (2006) could not find support for the role of asset specificity in the outsourcing decision. Aubert et al (2004) found asset specificity to be positively linked to outsourcing, contradicting the prediction from TCT. Assessing TCT-based studies explaining IT outsourcing decisions, Karimi-Alaghehband et al (2011) found support for the role of asset specificity in only 40% of 23 studies.…”

Section: Transaction Costsmentioning

confidence: 65%

A multi-level investigation of information technology outsourcing

Aubert

Houde

Patry

et al. 2012

The Journal of Strategic Information Systems

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This study proposes and tests a model of the information technology (IT) outsourcing decision that includes antecedents of both transaction costs and production costs. Production costs show the most robust influence on governance. Skills required to execute the activities, interdependence between the activities, and firm-level characteristics -uncertainty and knowledge intensity -are the main explanatory variables of the decision. Transaction-level uncertainty is the only transaction cost variable found to influence the decision. This study proposes and tests a model of the information technology (IT) outsourcing decision that includes antecedents of both transaction costs and production costs. Production costs show the most robust influence on governance. Skills required to execute the activities, interdependence between the activities, and firm-level characteristics -uncertainty and knowledge intensity -are the main explanatory variables of the decision. Transaction-level uncertainty is the only transaction cost variable found to influence the decision.

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Section: Transaction Costsmentioning

confidence: 65%

A multi-level investigation of information technology outsourcing

Aubert

Houde

Patry

et al. 2012

The Journal of Strategic Information Systems

Self Cite

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“…For ITO, the results for technical specificity are inconsistent (a significantly negative influence two of five times (40%) Wholey et al, 2001) and a significantly positive influence one of five times (20%) (Aubert et al, 2004). For CC, six of the ten studies (60%) are consistent and report a significant, negative influence (e.g., Watjatrakul, 2005).…”

Section: Asset Characteristicsmentioning

confidence: 98%

Determinant Factors of Cloud-Sourcing Decisions: Reflecting on the IT Outsourcing Literature in the Era of Cloud Computing

Schneider

Sunyaev

2016

Journal of Information Technology

206

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Cloud computing (CC) is an emerging form of IT outsourcing (ITO) that requires organizations to adjust their sourcing processes. Although ITO researchers have established an extensive knowledge base on the determinant factors that drive sourcing decisions from various theoretical perspectives, the majority of research on cloud-sourcing decisions focuses on technological aspects. We reviewed the CC and ITO literature and systematically coded the determinant factors that influence sourcing decisions. We show that most determinant factors of sourcing decisions in the ITO context remain valid for the CC context. However, the findings for some factors (i.e., asset specificity, client firm IT capabilities, client firm size, institutional influences, and uncertainty) are inconclusive for the CC and ITO contexts. We discuss how the peculiarities of CC can explain these inconclusive findings. Our results indicate that CC researchers should draw from research on ITO decision making but re-examine ITO concepts in the light of the peculiarities of CC, such as the differences between software and infrastructure services, the self-service procurement of cloud services, or the evolving role of IT departments. By summarizing determinant factors of cloud-sourcing decisions for consideration in future research, we contribute to the development of endogenous theories in the IS domain.

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“…Findings from different studies appear to contradict each other. Studies grounded in incomplete contract theories emphasize that higher level of environmental uncertainty increases the cost of writing a complete contract and leads to transaction costs (Aubert et al 2004;Loh 1994;Poppo and Zenger 1998). In case when firm-specific investments have to be made, these theories suggest not outsourcing.…”

Section: Uncertaintymentioning

confidence: 99%

“…Empirical research has not been able to provide consistent evidence regarding the effect of environmental uncertainty on firms' sourcing choices, with some studies finding positive association between uncertainty and outsourcing (Ang and Cummings 1997;McLellan et al 1995;Poppo and Zenger 1998), some finding negative association (Aubert et al 2004), and others no significant association at all (Loh 1994). Macher and Richman (2007) and Rindfleisch and Heide (1997) propose that uncertainty of different types drives firm boundary decisions in different directions.…”

Section: Uncertaintymentioning

confidence: 99%