Factors affecting information systems sourcing decisions: Data processing services in the banking industry.

摘要

As more rational sourcing decisions are believed to increase corporate productivity and competitive advantages, IS (Information Systems) sourcing decisions have recently received an increasing attention from both IS researchers and the executives of firms. The purpose of this research is to examine factors which may influence sourcing decisions for data processing services in the banking industry.;Based on the previous studies on IS sourcing and reference discipline theories, economic, strategic and risk factors were identified and their measures were developed. 1,000 questionnaires were mailed to CEOs (Chief Executive Officers) or the presidents of banks, who were asked to direct the questionnaires to the executives who have the authority or are knowledgeable about their sourcing arrangements for data processing services. 181 usable responses were obtained from the survey. The research hypotheses were tested by the logistic regression model specified by the dependent variable of primary sourcing arrangement for data processing services and the independent variables of four factors extracted from the factor analysis. There was a positive relationship between relative advantage and IS outsourcing. Autonomy and security risks were negatively associated with IS outsourcing. The study, however, failed to support the hypothesis which posited that criticality of IS function is negatively related to IS outsourcing. The same results were observed by a multiple regression model with the dependent variable, outsourcing preference, which was defined as the degree to which outsourcing is preferred to insourcing as a primary sourcing arrangement for data processing services.;A theoretical contribution of this research is the empirical identification of significant factors affecting sourcing decisions in the banking industry. It is believed that the research results will be useful for bank executives to make more rational sourcing decision making for data processing services.