The transaction cost of information system outsourcing and its decision-making

• Main Authors: Liu, Jun-Lang, 劉俊琅
• Other Authors: Jiin po Wu
• Format: Others
• Language: zh-TW
• Published: 1998
• Online Access: http://ndltd.ncl.edu.tw/handle/96461315402573636763

碩士 === 淡江大學 === 資訊管理學系 === 86 === Turning over part or all of an organization''s IS (Information System) functions to external service provider(s) is not a new phenomenon. What enterprise concerns most is that when IS has been outsourced, due to the specific transaction characteristics of IS or contractors'' opportunistic behavior, the follow-up transaction costs, exceptproduct cost and market price, will increase and enterprise will suffer heavy losses consequently. From the perspective of transaction cost theory, this study aims at examining the impacts of transaction characteristics and organizational characteristics on the IS strategic effectiveness. We also examine the impacts of transaction characteristics;the extent of trust in contractors and organizational characteristics on follow-up activities of IS outsourcing. Transaction characteristics consist of four dimensions:asset specificity, potential contractors, uncertainty, and measure problem. Strategiceffectiveness is composed of three dimensions: market differentiation, product differentiation, and cost reduction. The follow-up activities of IS outsourcing covertwo dimensions: the extent of substitution by contractors and the extent of completenessof contracts. This study employs survey research to investigate Taiwan''s enterprises, sampling from top 1000 manufacturing, top 500 services and top 100 finance field respectively, and collects data through self-administered questionnaires. 439 questionnaires were sent and 136 questionnaires were collected. The response rate is 31%. Regarding to IS strategic effectiveness, the results show that the potential contractorshave correlation with market differentiation, and the market and product differentiation increases as asset specificity increases; Organizational characteristics--the turnover of company, the layer and outsourcing role of IS department--have significant differentiationin cost reduction. As to follow-up outsourcing activities, the extent of substitution by contractors increases when outsourcing uncertainty increases; The degree of completeness of contracts increases when asset specificity and potential contractors increase. This studyconcludes that organization can develop specific IS by outsourcing so as to increase competitiveadvantage. With regard to the continuous outsourcing IS, when IS is complex, task difficult, and change of requirements frequent,equipment and personnel can be substituted by contractorsto reduce investment risk and to increase flexibility.