Single-Sourcing vs. Multisourcing: An Empirical Analysis of Large Information Technology Outsourcing Arrangements

2023 | Information Systems Research | Citations: 0

Authors: Bapna, Ravi; Gupta, Alok; Ray, Gautam; Singh, Shweta

Abstract: As the information technology (IT) services landscape matures, clients are incre ... Expand

Abstract: As the information technology (IT) services landscape matures, clients are increasingly adopting multisourcing arrangements that involve multiple vendors. Although a large body of information systems (IS) literature addresses issues of whether to outsource (to a single vendor), what types of contracts to use, and how to achieve optimal relational governance, little is known about the antecedents and consequents of the single versus multisourcing decision. Moreover, while conceptual and analytical models of single-sourcing versus multisourcing have been developed, there is no empirical IS research using a large-scale data set with rigorous econometric analysis that examines the antecedents and consequents of multisourcing in the IT context. This paper fills this void, using the transaction cost economic lens and a data set of 49,057 large IT outsourcing arrangements that spans multiple industries and dates back 25 years. We find that there is a curvilinear relationship between number of IT services in an IT outsourcing arrangement and the likelihood of multisourcing. This relationship increases as the number of IT services increases to up to five services and then decreases. For managers who plan to multisource IT outsourcing arrangements, this research provides guidance to minimize exchange hazards through a better understanding of the relationship between sourcing choice, client IT outsourcing capabilities, the competitiveness of the vendor landscape, and the number of IT services in an IT outsourcing arrangement. We provide empirical evidence that the choice between single-sourcing and multisourcing is material to the performance of outsourcing contracts as an incorrect sourcing choice is likely to result in negative contract outcomes. History: Paul A. Pavlou, Senior Editor; Ning Su, Associate Editor. Collapse

Topics: outsourcing system integration IS management service desk data center

Methods: XGBoost robustness check machine learning k-nearest neighbor statistical hypothesis test

Theories: transaction cost economics game theory

Artificial Intelligence as a Service: Trade-Offs Impacting Service Design and Selection

2023 | International Conference on Information Systems | Citations: 0

Authors: Brecker, Kathrin; Lins, Sebastian; Trenz, Manuel; Sunyaev, Ali

Abstract: AI as a Service (AIaaS) is a promising path to leverage AI capabilities from th ... Expand

Abstract: AI as a Service (AIaaS) is a promising path to leverage AI capabilities from the cloud. However, there is no one-size-fits-all service, but heterogenous service options since interdependent AIaaS characteristics require trade-offs. We lack knowledge on these tradeoffs and how they result from conflicting characteristics. Therefore, we interviewed 39 AIaaS providers, customers, and consultants to provide rich descriptions of interdependent characteristics and uncover resulting trade-offs and their consequences. This study contributes to a better understanding of the inner functioning and interplay of AIaaS characteristics and discusses how this complex nature of service offerings impacts providers' design and customers' selection decisions. Collapse

Topics: artificial intelligence cloud computing ease of use data protection economies of scale

Methods: qualitative interview design artifact constant comparative analysis qualitative coding triangulation

Theories: SERVQUAL core competency theory

Automotive Manufacturers and Their Stumble from one Supply Crisis to Another: Procurement Departments Could be the Game Changer by Using Data Analytics, but…

2023 | HICSS | Citations: 0

Authors: Klee, Sven; Janson, Andreas; Leimeister, Jan

Abstract: With this paper, we examine the use of data analytics for crisis management in a ... Expand

Abstract: With this paper, we examine the use of data analytics for crisis management in automotive procurement departments. Possible business values of data analytics were part of numerous research approaches. Nevertheless, automotive manufacturers are repeatedly confronted with supply chain disruptions. Procurement departments have a central role within supply chains and are predominantly responsible for stable supply processes. Taking into account the potential of data analytics, such crises should be avoided or at least mitigated. Thus, there is the question, why data analytics cannot currently help automotive procurement departments by facing such crises. We therefore evaluate problems and obstacles by implementing and using data analytics in automotive procurement departments. Therefore, we talk to experienced procurement experts for evaluating practical insights. With our findings we provide practical insights and applicable recommendations for action with the goal of helping procurement leaders to better leverage data analytics for meeting current and future crises. Collapse

Topics: procurement management analytical information system emergency management IS sourcing supply chain management

Methods: qualitative interview personal interview qualitative coding theoretical contribution

Introducing a Data Perspective to Sustainability: How Companies Develop Data Sourcing Practices for Sustainability Initiatives

2023 | Communications of the Association for Information Systems | Citations: 0

Authors: Krasikov, Pavel; Legner, Christine

Abstract: ... Expand

Abstract: Collapse

Topics: green IS sensemaking environmental sustainability data management data quality

Methods: case study focus group qualitative interview data modeling theory development

Theories: institutional theory

Skills of IT Graduates and Cross-border Mobility: Experiences from Norway and Poland

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Mangaroska, Katerina; Andersen, KIm Normann; Paliwoda-Pękosz, Grażyna; Soja, Piotr; Konkol, Paweł; Johannessen, Marius Rohde; Berntzen, Lasse

Abstract: The dynamic nature of the ICT field makes it extremely difficult and challengin ... Expand

Abstract: The dynamic nature of the ICT field makes it extremely difficult and challenging for educators to determine what skills and technologies are continuously pertinent and in-demand. Therefore, a frequent evaluation of critical skills supply and demand is necessary for education programs to stay relevant and effectively teach state-of-the-art skills. The main aim of our ongoing research project is to analyze how the current educational curricular guidelines address the requirements for competences of modern ICT workplaces in Poland and Norway, and thus, prepare the academia to adequately respond to the challenges imposed by the industry. The goal is to produce a general framework and models for future curriculum guidelines, and course planning and design, as a step towards workforce development that possess skills relevant for the future challenges of the modern ICT workplace environments. Collapse

Topics: soft skill IT skill outsourcing IT workforce artificial intelligence

Methods: survey qualitative content analysis topic model literature study cross sectional research

Survey and Systematization of Prescriptive Analytics Systems: Towards Archetypes from a Human-Machine-Collaboration Perspective

2023 | European Conference On Information Systems | Citations: 0

Authors: Wissuchek, Christopher; Zschech, Patrick

Abstract: Prescriptive analytics systems (PAS) represent the most mature form of business ... Expand

Abstract: Prescriptive analytics systems (PAS) represent the most mature form of business analytics (BA), offering advanced decision support. However, current research predominantly focuses on technical facets while neglecting social-technical design aspects. A pluralist research methodology was employed to address this gap, starting with a systematic literature review of over 200 papers. We used these papers to derive a concept matrix of fundamental elements that guided the development of a taxonomy conceptualizing the interplay and collaboration between humans and machines in PAS-based decision-making processes. Based on this taxonomy, we identified four recurring PAS archetypes with salient design characteristics: Informative, executive, adaptive, and autonomous PAS. Our findings have important implications for the BA community, including the need to investigate design options for executive, adaptive, and autonomous PAS; the underrepresentation of the human perspective; the missing links to the broader organizational landscape; and the potential for interpretable machine learning and reinforcement learning in PAS. Collapse

Topics: decision making mobile system internet of things organizational value explainable artificial intelligence

Methods: literature study structured literature research literature sample survey design principle

Theories: decision theory

An Information Systems Design Theory for Digital Broker Platforms

2022 | DESRIST | Citations: 0

Authors: Bley, Katja; Hentschel, Raoul; Pappas, Ilias

Abstract: Service platforms are becoming dominant drivers of daily business operations in ... Expand

Abstract: Service platforms are becoming dominant drivers of daily business operations in a digitalized environment. Research focuses on technological and network effects of such platforms, while socio-technical opportunities remain limited. Guidance support in selecting appropriate digital services on a multisided market platform may help companies with low domain knowledge as it increases their benefits by reducing existing barriers in adopting emerging technologies. We adapt the concept of a broker to a digital platform, which instantiates guidance support on multisided markets as core platform element. Further, we abstract the concept of a digital broker platform as an Information Systems (IS) design theory. By providing the necessary components of an IS design theory, we offer the possibility to derive digital broker platform artifacts, which are theoretically and conceptually grounded. We provide design principles for the method artifact and describe their applicability in an exemplary instantiation of the design theory in the domain of cloud computing. Lastly, we present the artifact’s mutability as well as its testable propositions. Collapse

Topics: digital platform cloud computing software as a service user interface cloud storage

Methods: design artifact design theory design principle design science design methodology

Theories: lemon market theory

Mind the Gaps: How Organization Design Shapes the Sourcing of Inventions

2022 | Organization Science | Citations: 0

Authors: Eklund, John; Kapoor, Rahul

Abstract: An important problem for many firms is sustaining their rate of innovation by la ... Expand

Abstract: An important problem for many firms is sustaining their rate of innovation by launching new products on an ongoing basis. Accordingly, firms need to replenish their innovation pipelines with new inventions as existing inventions are weeded out or reach fruition. The replenishment can be done through internally generated inventions or through externally sourced inventions via licensing, alliance, or acquisition modes. Drawing on incentives- and knowledge-based views of the firm, we consider the difference in managerial decision making between centralized and decentralized research and development (R&D) organization designs and how it impacts firms’ propensities to draw on externally sourced inventions. As compared with centralized designs, decentralized designs are associated with greater incentives for managers to replenish their firms’ pipelines but are limited in terms of intraorganizational knowledge flows that can facilitate the creation of inventions. We explore these mechanisms using a novel data set of firms’ sourcing decisions within the pharmaceutical industry between 1996 and 2015. We find that firms with decentralized R&D designs replenish their pipelines with a higher proportion of externally sourced inventions than do firms with centralized designs. This difference is found to be mainly attributed to external sourcing via licensing and for inventions of moderate novelty. This study offers an important contribution to the question of how firms organize for innovation, highlighting the relationship between internal R&D organization design and the external sourcing of inventions. In so doing, it illustrates that the choice of organization design in terms of centralization or decentralization can shape a firm’s locus of innovation. Collapse

Topics: research and development innovation management artificial intelligence IS sourcing implicit knowledge

Methods: qualitative interview regression analysis method robustness check theory development instrumental variables estimation

Theories: knowledge based theory of the firm

Strategic innovation through outsourcing – A theoretical review

2022 | Journal of Strategic Information Systems | Citations: 0

Authors: Gambal, Marfri-Jay; Asatiani, Aleksandre; Kotlarsky, Julia

Abstract: Competition in the Information Technology Outsourcing (ITO) and Business Process ... Expand

Abstract: Competition in the Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) industry is increasingly moving from being motivated by cost savings towards strategic benefits that service providers can offer to their clients. Innovation is one such benefit that is expected nowadays in outsourcing engagements. The rising importance of innovation has been noticed and acknowledged not only in the Information Systems (IS) literature, but also in other management streams such as innovation and strategy. However, to date, these individual strands of research remain largely isolated from each other. Our theoretical review addresses this gap by consolidating and analyzing research on strategic innovation in the ITO and BPO context. The article set includes 95 papers published between 1998 and 2020 in outlets from the IS and related management fields. We craft a four-phase framework that integrates prior insights about (1) the antecedents of the decision to pursue strategic innovation in outsourcing settings; (2) arrange­ ment options that facilitate strategic innovation in outsourcing relationships; (3) the generation of strategic innovations; and (4) realized strategic innovation outcomes, as assessed in the literature. We find that the research landscape to date is skewed, with many studies focusing on the first two phases. The last two phases remain relatively uncharted. We also discuss how innovation-oriented outsourcing insights compare with established research on cost-oriented outsourcing engage­ ments. Finally, we offer directions for future research. Collapse

Topics: innovation management outsourcing IS sourcing price management research and development

Methods: grounded theory mixed method literature sample literature study

Collaborating with Bounty Hunters: How to Encourage White Hat Hackers’ Participation in Vulnerability Crowdsourcing Programs through Formal and Relational Governance

2022 | Information & Management | Citations: 0

Authors: Li, Yuni; Zhao, Ling

Abstract: Although crowdsourcing studies have provided insights into the factors motivatin ... Expand

Abstract: Although crowdsourcing studies have provided insights into the factors motivating solvers, how to collaborate with white hat hackers in vulnerability crowdsourcing is still unclear. Drawing from information systems (IS) governance literature and psychological contract theory, this study proposed a research model to explore the effects of formal and relational governance mechanisms on solvers’ participation. Data from 242 programs and 6095 white hat hackers were collected and analyzed through a negative binomial regression. Results show that outcome control, expressing commitment, and prompt communication can increase the submission quantity of vulnerabilities. Interestingly, behavior control has an inverted U-shaped relationship with submission quantity. Collapse

Topics: crowdsourcing IT governance project productivity data breach virtual teamwork

Methods: qualitative coding statistical hypothesis test robustness check theory development regression analysis method

Theories: contract theory control theory