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Research Report: Diffusion of Information Systems Outsourcing: A Reevaluation of Influence Sources

Author

Listed:
  • Qing Hu

    (Department of Decision and Information Systems, Florida Atlantic University, Boca Raton, Florida 33431)

  • Carol Saunders

    (Department of Management, Southern Illinois University at Carbondale, Carbondale, Illinois 62901)

  • Mary Gebelt

    (Department of Decision and Information Systems, Florida Atlantic University, Boca Raton, Florida 33431)

Abstract

Information systems outsourcing is an increasingly popular IS management practice in companies of all sizes. Examining the adoption of IS outsourcing from the well-developed theoretical foundation of innovation diffusion may shed some light on significant factors that affect the adoption decision, and clarify some misperceptions. This study explores the sources of influence in the adoption of IS outsourcing. Using a sample of 175 firms that outsourced their IS functions during the period from January 1985 to January 1995, we tested three hypotheses of sources of influences using four diffusion models: internal influence, external influence, and two mixed influence models. Our findings suggest that the mixed influence is the dominant influence factor in the diffusion of IS outsourcing, and that there is no evidence of the “Kodak effect” in the IS diffusion process. This directly contradicts the conclusions of the Loh and Venkatraman (1992) study. Further discussions are provided about the potential problems in studies of influence sources of IT innovation diffusion.

Suggested Citation

  • Qing Hu & Carol Saunders & Mary Gebelt, 1997. "Research Report: Diffusion of Information Systems Outsourcing: A Reevaluation of Influence Sources," Information Systems Research, INFORMS, vol. 8(3), pages 288-301, September.
    • Handle: RePEc:inm:orisre:v:8:y:1997:i:3:p:288-301
    DOI: 10.1287/isre.8.3.288
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    Cited by:

    1. Coronado Mondragon, Adrian E. & Coronado Mondragon, Christian E. & Coronado, Etienne S., 2017. "ICT adoption in multimodal transport sites: Investigating institutional-related influences in international seaports terminals," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 69-88.
    2. Irfan Kanat & Yili Hong & T. S. Raghu, 2018. "Surviving in Global Online Labor Markets for IT Services: A Geo-Economic Analysis," Information Systems Research, INFORMS, vol. 29(4), pages 893-909, December.
    3. Karen Ruckman & Nilesh Saraf & Vallabh Sambamurthy, 2015. "Market Positioning by IT Service Vendors Through Imitation," Information Systems Research, INFORMS, vol. 26(1), pages 100-126, March.
    4. Debendra Kumar Mahalik, 2014. "Does Decision Changes—A Case Discussion on e-Governance Outsourcing: A Fuzzy Analysis Approach," Global Business Review, International Management Institute, vol. 15(4_suppl), pages 39-48, December.
    5. Mírian Oliveira & Kaytson Hartung & Marcelo Wendling, 2010. "Outsourcing And Offshore: An Analysis Of The Academic Literature," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 215-234.
    6. Liam Murphy, 2024. "The influence of IT outsourcing on organisational success and innovation," Future Business Journal, Springer, vol. 10(1), pages 1-17, December.
    7. Baozhou Lu & Rudy Hirschheim & Andrew Schwarz, 2015. "Examining the antecedent factors of online microsourcing," Information Systems Frontiers, Springer, vol. 17(3), pages 601-617, June.
    8. Aslan Lotfi & Zhengrui Jiang & Ali Lotfi & Dipak C. Jain, 2023. "Estimating Life Cycle Sales of Technology Products with Frequent Repeat Purchases: A Fractional Calculus-Based Approach," Information Systems Research, INFORMS, vol. 34(2), pages 409-422, June.
    9. Kirchner, Alexander & Labusch, Nils & Lopez Cordoba, Adriana & Sartor, Sebastian & Tumbas, Sanja & Villalon, Enrique & Wiethoff, Sebastian, 2011. "Network e-Volution," ERCIS Working Papers 11, University of Münster, European Research Center for Information Systems (ERCIS).
    10. Bo-Seong Yun & Sang-Gun Lee & Yaichi Aoshima, 2019. "An analysis of the trilemma phenomenon for Apple iPhone and Samsung Galaxy," Service Business, Springer;Pan-Pacific Business Association, vol. 13(4), pages 779-812, December.
    11. Kshetri, Nir, 2007. "Institutional factors affecting offshore business process and information technology outsourcing," Journal of International Management, Elsevier, vol. 13(1), pages 38-56, March.
    12. Lili Geng & Huixian Hui & Xiaomeng Liang & Shaocong Yan & Yongji Xue, 2023. "Factors Affecting Intention Toward ICT Adoption in Rural Entrepreneurship: Understanding the Differences Between Business Types of Organizations and Previous Experience of Entrepreneurs," SAGE Open, , vol. 13(3), pages 21582440231, September.

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