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IS outsourcing management competence dimensions instrument by yurtgc548

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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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