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IS outsourcing management competence dimensions: instrument development and relationship exploration 報告者: 林韋成 指導:王育民教授 outline • Abstract • Introduction • Theoretical perspectives on IS outsourcing • Is outsourcing management competence dimensions and their relevance theoretical perspectives • Research methodology • Discussion • Conclusion Abstract • Three theoretical perspectives were applied to explain the nature of the IS outsourcing phenomenon • Some measures were generated • Test proposed competences and measure Introduction • IS outsourcing related costs, risks , and pitfalls. So firms need to have management ability to control them. • Firms should be able to accurately measure IS service performance both before they sign the contract and throughout the process. Theoretical perspectives on outsourcing • An inter-organizational process based perspective • A knowledge management based perspective • An economics based perspective An inter-organizational process based perspective • A model for a seller-buyer relationship developmental process consisting of four stage: awareness, exploration , expansion , commitment , and dissolution. by Dwyer et al An inter-organizational process based perspective • The development and evolution of a cooperative IOR as consisting of a repetitive sequence of negotiation , commitment , and execution stages. By Ring and Van de Ven A knowledge management based perspective • Integrate knowledge is insightful and meaningful in post-industrial society. • Outsourcing is a part way of that firms assemble knowledge from suppliers. An economics based perspective • Transaction costs economics - technological uncertainty - asset specificity • Agency theory - non-separability of performance among team members - task programmability Is outsourcing management competence dimensions and their relevance theoretical perspectives • Informed buying • Contract facilitation • Contract monitoring • Vendor development Informed buying and its relevance to theoretical perspectives • Analyzing the external IS service market • Selecting a sourcing strategy • Solve technology issues • Leading the tendering , contracting , and services management processes. By Feeny and Willcocks Contract facilitation, contract monitoring, and their relevance to theoretical perspectives • Contract facilitation is an action- oriented competence with a purpose to manage contract negotiation execution , and conflicts resolution. by Feeny and Willcocks Contract facilitation, contract monitoring, and their relevance to theoretical perspectives • Effective contract monitoring means holding suppliers to account on both existing service contracts and developing performance standards of the services market by Feeny and Willcocks Their relevance to theoretical perspectives • Closely relate to negotiation , commitment and execution • Generate many opportunities • Establish a field for knowledge creation and integration Vendor development and its relevance to theoretical perspectives • Organizations looking beyond existing contractual arrangements to explore the long-term potentials for suppliers to create win-win situations in which the supplier increases revenues by providing services that increase business benefits. By Feeny and Willcocks Is outsourcing management competence dimensions and theoretical perspectives Research methodology • Item generalization • Field interviews • Pretest • Pilot study • The large scale study • Convergent validity • Composite factor reliability • Discriminant validity • Predictive validity • Relationship exploration and empirical examination Item generalization • Items were generated based on literature • Due attention was paid to content validity by making sure that measurement items covered the content domain of a theoretical construct. Field interviews • Two directors and one quality director • 1h to over 2h • Measurement items were used to explain the meaning of IS outsourcing at an operation level • The effectiveness and efficiency of the IS outsourcing services • the capability of the firm to absorb new technologies after outsourcing. Pretest • A pretest was implemented to refine measurement items by presenting the questionnaire to two dissertation- stage Ph.D. candidates, two IS professors, one operation management professor, and one IS director. Pilot study • Five hundred names were randomly selected from a name list provided • CITC was used to purify the measurement items, and Cronbach alpha was used to test the reliability of the measurement items • Items are deleted iteratively if their CITC scores were below 0.5. • A higher than 0.70 for alpha was also pursued in maintaining or deleting item The large scale study • Two sets of surveys were administered in the US, each having several waves of surveys with 2 or 3 weeks • Three hundred phones calls were made to find why IS directors and managers had not responded • There were 82 useful responses from the first set of mailings and 123 from the second set of mailings • One hundred ninety eight were returned without responses. The effective response rate was thus 205/ (3425-198) = 6.35%. The large scale study The large scale study • that respondent bias did not exist in the data • Exploratory factor analysis (EFA) was applied to investigate the relationship between proposed measures and competence dimensions • Then confirmatory factor analysis (CFA) was applied to verify reliability and validity • EFA assumes that measurement tems’ errors are uncorrelated and it cannot test whether all these dimensions together form second-order factors • CFA takes item error correlations into consideration and thus may reveal more complex relationships embedded in the items. Large study results • All the factor loadings are greater than 0.4, which are significant with a sample size around 200 • Kaiser–Meyer–Olkin (KMO) is 0.89, which is outstanding Large study results Large study results • After the exploratory factor analysis, the convergent validity of each dimension was going to be tested individually by checking their LISREL model fit indices and average variance explained (AVE) values. • Discirminant validity of all derived dimensions was tested by comparing two LISREL models. Convergent validity • LISREL be used • AVE be measured the ratio between the variance captured • All the AVEs are well above 0.5, Convergent validity Composite factor reliability Discriminant validity • any two of the nine dimensions was tested by comparing the chi-square values of the original • all statistics demonstrate that discriminant validity were good for all pairs of dimensions Predictive validity • If a construct has a significant relationship with a performance criterion, then it is said to have good predictive validity. Predictive validity Relationship exploration and empirical examination • Test of the co-variation model • Development of second order factors of IS outsourcing management competence • Relationships among second-order competence factors Test of the co-variation model • The co-variation model fit indices, l values, T-values • all the l values are reasonably good and correlations among the nine dimensions were also significant Test of the co-variation model Test of the co-variation model Development of second order factors of IS outsourcing management competence • Three second-order factors, informed buying, contract management, and relationship management • existing contract, efficient execution is the prerequisite for any degree of IS outsourcing success • IS outsourcing contract development and enhancement is inevitable Relationships among second -order competence factors • Informed buying is the knowledge basis for both generating a substantive guiding framework • Contract management provides the structure and process based on which IS vendor, user, and IS staff relationships are managed • establishing an appropriate social and intellectual atmosphere An empirical test of the second- order factor model • The existence of these second-order competence factors and their relationships were empirically tested using LISREL by checking the second- order model fit indices and the correlations among them. • there are three second-order IS outsourcing management competence factors and they have continuously interacting relationships. An empirical test of the second- order factor model discussion • Contributions to research • Contributions to practitioners • Research limitations Contributions to research • understanding of IS outsourcing phenomenon by applying inter- organizational process, knowledge management, and economic perspectives • Responding to a critique of its lack of operationalization Contributions to practitioners • the development and empirical confirmation of IS outsourcing management competence dimensions and factors provide an overview of the different IS outsourcing management competences Research limitations • the use of only one key informant in each responding organization • the low response rate, the fact that the demographics may influence the generalizability of the findings • respondents may be sensing the inherent constructs via the ordering of questionnaire items and they may respond accordingly Conclusion • As IS outsourcing becomes more critical for both traditional industrial firms and new Internet players, firms need to understand IS outsourcing management competences and how to develop them.
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