A Multi-level Investigation of Information Technology Outsourcing

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Business Economics and Public Policy Papers
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outsourcing
theory of the firm
information services
multi-level analysis
production costs
transaction costs
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Business Administration, Management, and Operations
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Aubert, Benoit
Houde, Jean-François
Patry, Michel
Rivard, Suzanne
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Abstract

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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2012-09-01
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Journal of Strategic Information Systems
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