Start Date
16-8-2018 12:00 AM
Description
This paper employs the resource-based view as a theoretical lens to empirically explore how the information technology (IT) outsourcing orientation of an organization impacts its competitive advantage. The study develops a research model to explore the impact of five IT outsourcing orientations (Cost, Flexibility, Innovation, Quality, and Time) on the competitive position of firms. A survey of 115 hotels that practice IT outsourcing was conducted to test the research model. The results of the study revealed that three outsourcing orientations (Flexibility, Innovation, and Time) created all three types of competitive advantage (Cost Leadership advantages, Differentiation advantages, and Focus advantages). Meanwhile Quality outsourcing orientation created Differentiation and Focus advantages, whilst Cost outsourcing orientation generated only Cost leadership advantages. The study therefore recommends that Flexibility, Innovation, and Time should receive more attention by both researchers and managers given that they are more effective in creating competitive advantages for firms practicing IT outsourcing. \ \ Keywords \ IT Outsourcing, Competitive Advantage, PLS-SEM. \
Recommended Citation
AGYEI-OWUSU, BENJAMIN; ASAMOAH, DAVID; and AGBENYO, LEONARD, "Examining the effects of Information Technology Outsourcing on Competitive Advantage" (2018). AMCIS 2018 Proceedings. 25.
https://aisel.aisnet.org/amcis2018/StrategicIT/Presentations/25
Examining the effects of Information Technology Outsourcing on Competitive Advantage
This paper employs the resource-based view as a theoretical lens to empirically explore how the information technology (IT) outsourcing orientation of an organization impacts its competitive advantage. The study develops a research model to explore the impact of five IT outsourcing orientations (Cost, Flexibility, Innovation, Quality, and Time) on the competitive position of firms. A survey of 115 hotels that practice IT outsourcing was conducted to test the research model. The results of the study revealed that three outsourcing orientations (Flexibility, Innovation, and Time) created all three types of competitive advantage (Cost Leadership advantages, Differentiation advantages, and Focus advantages). Meanwhile Quality outsourcing orientation created Differentiation and Focus advantages, whilst Cost outsourcing orientation generated only Cost leadership advantages. The study therefore recommends that Flexibility, Innovation, and Time should receive more attention by both researchers and managers given that they are more effective in creating competitive advantages for firms practicing IT outsourcing. \ \ Keywords \ IT Outsourcing, Competitive Advantage, PLS-SEM. \