Business Economics and Public Policy Papers

Document Type

Journal Article

Date of this Version

9-2012

Publication Source

Journal of Strategic Information Systems

Volume

21

Issue

3

Start Page

233

Last Page

244

DOI

10.1016/j.jsis.2012.04.004

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.

Copyright/Permission Statement

©. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

outsourcing, theory of the firm, information services, multi-level analysis, production costs, transaction costs

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Date Posted: 27 November 2017

This document has been peer reviewed.