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Management Control Of Support Services: The Case Of It Sourcing

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  • Lau, Eric La
  • Laan, Michel van der
  • Kruis, Annemarie
  • Speklé, Roland F.

    (Nyenrode Business Universiteit)

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    Abstract

    This paper provides evidence on the factors that influence the design of the control arrangements that govern support services. Based on TCE, we hypothesize that control structure choices depend on asset specificity, uncertainty, and frequency. Using survey data on IT sourcing decisions from 89 firms in the construction industry, we find support for most of our hypotheses. Our results indicate that asset specificity negatively affects firms’ propensity to outsource, and that (behavioural) uncertainty intensifies this negative effect. As expected, we also find that frequency has a negative direct effect on the willingness to outsource IT services provision. However, we find no support for the hypothesized interaction between asset specificity and frequency.

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    File URL: http://www.nyenrode.nl/facultyandresearch/nri/Documents/Working%20papers/Sourcing%20of%20It%20services%2009-11%20FINAL.pdf
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    Bibliographic Info

    Paper provided by Nyenrode Business Universiteit in its series Nyenrode Research Papers Series with number NRI09-11.

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    Date of creation: 2009
    Date of revision:
    Handle: RePEc:dgr:nijrep:2009-11

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    Web page: http://www.library.nyenrode.nl

    Related research

    Keywords: support services; sourcing decisions; information technology; transaction cost economics;

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    1. Raj Echambadi & James D. Hess, 2007. "Mean-Centering Does Not Alleviate Collinearity Problems in Moderated Multiple Regression Models," Marketing Science, INFORMS, vol. 26(3), pages 438-445, 05-06.
    2. Hartmann, Frank G.H. & Moers, Frank, 1999. "Testing contingency hypotheses in budgetary research: an evaluation of the use of moderated regression analysis," Open Access publications from Maastricht University urn:nbn:nl:ui:27-13750, Maastricht University.
    3. Nooteboom, B., 1993. "Research note: Analysis of specificity in transaction cost economics," Open Access publications from Tilburg University urn:nbn:nl:ui:12-372739, Tilburg University.
    4. Veall, Michael R & Zimmermann, Klaus F, 1996. " Pseudo-R-[superscript 2] Measures for Some Common Limited Dependent Variable Models," Journal of Economic Surveys, Wiley Blackwell, vol. 10(3), pages 241-59, September.
    5. Raj Echambadi & Benjamin Campbell & Rajshree Agarwal, 2006. "Encouraging Best Practice in Quantitative Management Research: An Incomplete List of Opportunities," Journal of Management Studies, Wiley Blackwell, vol. 43(8), pages 1801-1820, December.
    6. Spekle, Roland F., 2001. "Explaining management control structure variety: a transaction cost economics perspective," Accounting, Organizations and Society, Elsevier, vol. 26(4-5), pages 419-441.
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