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Erschienen in: Information Systems Frontiers 2/2008

01.04.2008

Strategic dependence on the IT resource and outsourcing: A test of the strategic control model

verfasst von: Detmar Straub, Peter Weill, Kathy S. Schwaig

Erschienen in: Information Systems Frontiers | Ausgabe 2/2008

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Abstract

Using resource dependency theory (RDT), this research analyzes how organizations control their information technology resources to improve organizational performance. According to RDT, organizations must manage their dependency on external organizations and limit external dependencies when resources are considered critical. The current study proposes and tests a portion of a Strategic Control Model positing that managers seek to control important, strategic resources in order to create value for the firm and to avoid dependency on external entities. Utilizing a research design that captured extensive quantitative data on the control of IT functions and services, the research team gathered 5 years of data on 54 business units (BUs) in 27 global companies located in seven countries. Study examined the linkages of these 54 BUs to firm performance. Locating the Extent of Control within the firm in cases where the firm depends on IT as a strategic resource proves to be a good explanation for effective decisions leading to higher performance. Viewing IT as a strategic resource alone does not lead to positive business unit outcomes, but the moderating influence of Extent of Control is found to establish the complex statistical relationship with business unit performance. For these reasons, it is critical that a theoretically grounded firm-wide process for decisions on locating IT control is in place to capture business value.

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1
Lacity and colleagues use the term “selective outsourcing” in apposition to total outsourcing or insourcing, which is why “Extent of Outsourcing” appears within these two extremes in Fig. 1. Our argument is a selective outsourcing argument in that firms that abjure total outsourcing are making decisions about not outsourcing what are viewed as strategic resources, which allows them more control over their core assets.
 
2
These results will be examined further in “Section 4”.
 
3
See www.​aph.​gov.​au for details of a Federal Australian Government inquiry into IT outsourcing.
 
4
Particularly because we had numerous formative latent constructs in the SCM, we adopted a holistic data analysis approach with measurement and structural models being run simultaneously. That is, no confirmatory factor analysis preceded the structural model to “cleanse” the scales. A holistic analysis grants high conceptual integrity in the latent constructs. Holistic analysis retains the meaning of each construct, which is drawn from both its measurement items and the other latent variables (Bagozzi 1984).
 
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Metadaten
Titel
Strategic dependence on the IT resource and outsourcing: A test of the strategic control model
verfasst von
Detmar Straub
Peter Weill
Kathy S. Schwaig
Publikationsdatum
01.04.2008
Verlag
Springer US
Erschienen in
Information Systems Frontiers / Ausgabe 2/2008
Print ISSN: 1387-3326
Elektronische ISSN: 1572-9419
DOI
https://doi.org/10.1007/s10796-008-9064-9

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