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Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Information Technology outsourcing: An Institutional Theory Approach

Information Technology outsourcing: An Institutional Theory Approach
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Author(s): Abhijit Chaudhury (Bryant University, USA) and Pradeep Kumar Mukherjee (Tholons Inc., USA)
Copyright: 2007
Pages: 4
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch079
ISBN13: 9781599049298
EISBN13: 9781466665378

Abstract

The study investigates factors contributing to adoption of information technology outsourcing (ITO). The focus is on adoption of ITO as a management innovation. The research model is motivated by institutional theory. The model posits that it is the fit among two factors that determines the adoption rate of ITO services: (1) institutional profile- propensity to adopt by a firm is influenced by factors such as prestige level of the firm, educational level, support from senior management and firm size; and (2) field level characteristics such as intensity of competition, density of inter-firm connections, service professionalization, skilled staff availability, knowledge codification in the field, and effort level by intermediaries in promoting legitimacy of ITO. The paper is written from the perspective of third world outsourcing vendors.

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