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Transaction cost economics and industry maturity in it outsourcing: A meta-analysis of contract type choice

conference contribution
posted on 2014-01-01, 00:00 authored by K Dongus, Philip YettonPhilip Yetton, M Schermann, H Krcmar
Recent reviews of the information technology outsourcing (ITO) literature report high variance in research results when Transaction Cost Economics (TCE) is used as the analytical framework. Informed by ITO market developments, including increasing commoditisation, market consolidation, and market transparency, we develop an explanation for these mixed results contingent on ITO industry maturity. We adopt meta-analysis to show that ITO industry maturity significantly explains variance in the choice of contract type (time and materials vs. fixed price) in ITO projects. Our results suggest that TCE is relevant to explain the choice of contract type in the emerging phase of the ITO industry, but not in its current mature phase. We conclude that a TCE-based analytical framework is not well suited for the study of ITO in the current mature industry phase. Instead, we propose that an "endogenous" ITO theory should be developed that focuses on differences in client behaviour rather than vendor behaviour.

History

Event

European Conference on Information Systems (22nd : 2014 : Tel Aviv, Israel)

Pagination

1 - 17

Publisher

Association for Information Systems

Location

Tel Aviv, Israel

Place of publication

Atlanta, Ga.

Start date

2014-06-09

End date

2014-06-11

ISBN-13

9780991556700

Language

eng

Publication classification

E1.1 Full written paper - refereed; E Conference publication

Copyright notice

2014, Association for Information Systems

Editor/Contributor(s)

[Unknown]

Title of proceedings

ECIS 2014 : Digital Work, Digital Life : Proceedings of the European Conference on Information Systems 2014

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