![Sample our Economics, Finance,Business & Industry journals, sign in here to start your access, latest two full volumes FREE to you for 14 days]({"type":"image" , "src" : "/sda/5931/TOC-Subject-Sample-2021-Economics-Finance-Business-Industry.jpg"})
Abstract
Netsourcing, a rather innovative form of web-enabled value creation, describes outsourcing of selected software applications to external service providers via the Internet. It promises flexibility and cost advantages over operating software applications in-house. However, it also raises the question which software applications corporate users should netsource and which they should keep in-house. To answer these questions, we develop a research framework with seven independent variables derived from the literature on full information technology outsourcing. On data collected in a 2004 survey among the 500 largest German companies, we apply a logistic regression analysis. As a result, we find significant statistical support for strategic management variables and no support for transaction cost economics variables as being relevant to the netsourcing decision. We conclude the paper with some lessons learned and suggestions for further research.
Notes
1 Thus, we disregard theoretical approaches that investigate outsourcing decisions with regard to the relationship of individuals and organizations (e.g. CitationLoh & Venkatraman, 1992; CitationLacity & Hirschheim, 1993; CitationNam et al., 1996). We also discount relationship-oriented theories of rational decision-making such as agency theory which have been applied to analyze outsourcing relationships considering cooperative inter-organizational approaches (e.g. CitationHenderson, 1990; CitationKern, 1997) or focusing on moral hazard (e.g. CitationCheon et al., 1995; CitationHancox & Hackney, 2000).
Additional information
Notes on contributors
Claudia Loebbecke
Claudia Loebbecke holds the Chair of Media Management and is Director of the Department of Business Administration and Media Management at the University of Cologne, Germany. During 2005–2006, she served as President of the Global Association for Information Systems (AIS). Her vita and publications can be found under www.mm.uni-koeln.de.
Claudio Huyskens
Claudio Huyskens is Ph.D. candidate in Business Administration, especially Media Management, at the University of Cologne, Germany. In 2005, he received a master degree (Dipl.-Kfm.) in Business Administration from the University of Cologne. Currently, he is working on his Ph.D. thesis on selective software application outsourcing.