Login

Publications  •  Project Statistics

Glossary  •  Schools  •  Disciplines
People Search: 
   
Title/Abstract Search: 

Dissertation Information for Soon Ang

NAME:
- Soon Ang

DEGREE:
- Ph.D.

DISCIPLINE:
- Management

SCHOOL:
- University of Minnesota, Twin Cities (USA) (1993)

ADVISORS:
- None

COMMITTEE MEMBERS:
- None

MPACT Status: Incomplete - Not_Inspected

Title: The etiology of information systems outsourcing

Abstract: Traditionally, organizations have pursued autonomy by internalizing and vertically integrating business functions. Yet, in recent years, outsourcing--the contracting out of functions to external service-providers--has emerged as a dominant organizational strategy. Not only are organizations outsourcing activities that are peripheral to their business functioning, but some are even relinquishing functions that are critical to their core operations. This thesis examines the outsourcing of a critical function--information systems (IS)--in a large, major industry, the banking industry. The dissertation proposes that both economic and non-economic motives of outsourcing are necessary for a comprehensive understanding of the etiology of outsourcing. Economic factors reflect costs and efficiency considerations, while non-economic factors include managerial-behavioral influences and institutional pressures on sourcing arrangements.

This study accomplishes two objectives: (1) the development of a synthesized theoretical model of outsourcing that juxtaposes economic, managerial-behavioral and institutional factors, where each factor exerts unique influences on sourcing arrangements; and (2) the evaluation of the empirical validity of the model based on a field study of IS outsourcing in commercial banks.

A pilot investigation of 21 banks in the Minneapolis-St. Paul, Minnesota, metropolitan area was undertaken to validate the constructs in the model. Subsequently, the main study was conducted using phone interviews and mail questionnaires to collect information from randomly selected banks which were members of the American Bankers Association. Completed questionnaires from 226 banks constituted the primary source of data and additional financial data on the 226 banks was obtained from the Federal Reserve Bank's databases.

Results from this field study show that the causes or etiology of IS outsourcing is significantly different for large and small banks. Outsourcing in large banks is influenced by (1) production economies and (2) the internal institutional pressures to unbundle support services. On the other hand, outsourcing in small banks is influenced by (1) production economies, (2) transaction economies, and (3) the external institutional pressures from peer banks, professional IT associations, and federal bank examiners. This study demonstrates that an integration of both economic considerations and institutional influences is necessary in positioning outsourcing within the context of an organization's strategic response to its environment.

MPACT Scores for Soon Ang

A =
C =
A+C =
T =
G =
W =
TD =
TA =
calculated

Advisors and Advisees Graph