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Effects of Formal and Informal Control Combination on Information Systems Outsourcing Consequence: Based on IT Governance Perspectives  

Lee, Jong-Man (동양미래대학 인터넷비즈니스과)
Publication Information
Journal of Internet Computing and Services / v.11, no.2, 2010 , pp. 155-164 More about this Journal
Abstract
The purpose of this paper is to propose critical success factors for effectively managing information systems(IS) outsourcing. The survey method was used for this paper, and data from a total 106 companies that were listed greater than $10 million were used for the analysis. To analyze the data, structural equation model was used. The results of this empirical study is summarized as follows. First, both formal control based on contract and informal control based on trust have a positive effect on control level which is a determinant indicator of IS outsourcing performance. Second, management capability such as preparedness capability and relationship capability have a positive effect on formal and informal control mechanism. The findings have important implications for the role of trust and management capability in formal management control.
Keywords
IS Outsourcing; IT Governance; Contract; Trust; Management Capability;
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Times Cited By KSCI : 4  (Citation Analysis)
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