Information Processing View on Enterprises Information System Outsourcing Performance: Task Complexity as a Moderator

Abstract

Information system outsourcing is one of the pillars in IT outsourcing Most literatures studied the risks entailed in system outsourcing and the management approaches which could improve outsourcing performance; however the academics never explained how outsourcing performance was improved This study aims to explore how governance mechanisms improve outsourcing performance through outsourcing features Developed on the theoretical background of information processing view proposing governance structure relational governance and IT coordination as governance mechanisms this study explores how they achieve outsourcing goals by reducing transaction cost and raising outsourcing flexibility in system outsourcing features The moderating effects of task complexity on the relation of governance mechanisms and outsourcing features are also explored Three case studies were conducted and 214 valid questionnaires were collected from people with system outsourcing experience The results indicate that the most effective method to improve outsourcing features is through relational governance followed by governance structure; whereas IT coordination shows no influence on outsourcing features In addition outsourcing features not only dominates firm’s goal achievement but also facilitates firm’s goal expectations This study suggests that system provider can elevate customer’s loyalty by improving outsourcing flexibility Client is suggested to complement contracts with relational governance in order to successfully achieve outsourcing goals

Date of Award	2014 Oct 22
Original language	English
Supervisor	Hsin-Hsin Chang (Supervisor)