Are There Contagion Effects in IT Outsourcing?

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dc.contributor.authorNault, Barrie R
dc.contributor.authorHan, Kunsoo
dc.contributor.authorMann, Arti
dc.contributor.authorKauffman, Robert J.
dc.date.accessioned2015-06-12T20:56:46Z
dc.date.available2015-06-12T20:56:46Z
dc.date.issued2011-11
dc.descriptionElsevier: We are able to post the post print/accepted author manuscript or the pre-print file (http://www.elsevier.com/journal-authors/author-rights-and-responsibilities#author-posting). Post print deposited according to Publisher's policy 06/11/2015.en_US
dc.description.abstractWe model the diffusion of IT outsourcing using announcements about IT outsourcing deals. We estimate a lognormal diffusion curve to test whether IT outsourcing follows a pure diffusion process or there are contagion effects involved. The methodology permits us to study the consequences of outsourcing events, especially mega-deals with IT contract amounts that exceed US$1 billion. Mega-deals act, we theorize, as precipitating events that create a strong basis for contagion effects and are likely to affect decision-making by other firms in an industry. Then, we evaluate the role of different communication channels in the diffusion process of IT outsourcing by testing for the fit of the mixed influence model at the industry level. This helps us to evaluate the consistency of evidence at two different levels of analysis. We also evaluate two flexible diffusion models: the Gompertz and Weibull models. Our results show that the diffusion patterns of IT outsourcing do not appear to be lognormal, suggesting that IT outsourcing does not follow a pure diffusion process. Instead, we find the presence of contagion effects in the diffusion of IT outsourcing. During periods of the most rapid outsourcing growth – the contagion periods – the actions of the large and more visible firms may provide exemplars for smaller firms, reducing their inhibitions about committing to IT outsourcing. We also find that the results of the mixed influence and the Weibull models, which provide the best fit for overall IT outsourcing diffusion patterns, are potentially indicative of the existence of spillovers that might drive the observed contagion effects at the industry level.en_US
dc.description.refereedYesen_US
dc.identifier.citationHan, K., Kauffman, R.J., Mann, A., and B.R. Nault, "Are There Contagion Effects in IT Outsourcing?," Decision Support Systems, 51, 4 (November 2011), 864-874.en_US
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/34151
dc.identifier.issn0167-9236
dc.identifier.urihttp://hdl.handle.net/1880/50472
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.publisher.corporateUniversity of Calgaryen_US
dc.publisher.departmentManagement Information Systemsen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.publisher.urlhttp://www.elsevier.comen_US
dc.subjectBusiness processesen_US
dc.subjectOutsourcingen_US
dc.subjectContagion effectsen_US
dc.subjectEconomic analysisen_US
dc.subjectInfluence modelsen_US
dc.subjectIT servicesen_US
dc.subjectS-curve flexible modelsen_US
dc.titleAre There Contagion Effects in IT Outsourcing?en_US
dc.title.alternativeAre there contagion effects in information technology and business process outsourcing?en_US
dc.typejournal article
thesis.degree.disciplineManagement Information Systemsen_US
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