Barbara L. Marcolin

A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study

The ability to detect and accurately estimate the strength of interaction effects are critical issues that are fundamental to social science research in general and IS research in particular. Within the IS discipline, a significant percentage of research has been devoted to examining the conditions and contexts under which relationships may vary, often under the general umbrella of contingency theory (cf. McKeen et al. 1994, Weill and Olson 1989). In our survey of such studies, the majority failed to either detect or provide an estimate of the effect size. In cases where effect sizes are estimated, the numbers are generally small. These results have led some researchers to question both the usefulness of contingency theory and the need to detect interaction effects (e.g., Weill and Olson 1989). This paper addresses this issue by providing a new latent variable modeling approach that can give more accurate estimates of interaction effects by accounting for the measurement error that attenuates the estimated relationships. The capacity of this approach at recovering true effects in comparison to summated regression is demonstrated in a Monte Carlo study that creates a simulated data set in which the underlying true effects are known. Analysis of a second, empirical data set is included to demonstrate the techniques use within IS theory. In this second analysis, substantial direct and interaction effects of enjoyment on electronic-mail adoption are shown to exist.

Financial and strategic motivations behind IS outsourcing

Information Systems (IS) functions and whole IS departments are being outsourced in industries where the IS functions have been considered ‘core’ to the success of that business. Why and how senior management came to make these decisions is the focus of this article. It explains the motivations behind Information Technology (IT) outsourcing when popular alliance theories, such as transaction cost theories, game theory and joint-venture alliance theory suggested firms would not outsource an entity if core competency would be lost. Seven case studies were used to investigate the IT outsourcing phenomenon in the observed ‘alliance-like’ relationships emerging in the banking industry in the early 1990s. Inductive theory generating research was undertaken in this work following Yins (1984, 1989) guidelines of multiple case replications to ensure rigorous and systematic data collection procedures. Before the case studies were conducted, 40 preliminary interviews were undertaken with managers of companies that were and were not involved in IT outsourcing contracts to explore the theorized factors of interest drawn from the literature, to develop the propositions, and to refine a structured interview guide. These preparatory steps led into the initial case study, and the literal replications of the proposed factors to confirm the patterns found. A theoretical replication based on conflict resolution was then undertaken to expose greater variation in conflict with the outsourcing relationships to contrast the initial patterns found. The results suggest that financial motivations underlie many IT outsourcing decisions, and unresponsive IS departments are accelerating the pace of the outsourcing process. Within this research, IT outsourcing was found to have profound effects on the expenses for the banks. However, contrary to conventional wisdom, IT outsourcing is taking place within firms and industries which utilize IS activities that are considered core competencies. Several strategic motivations were presented that may explain this management decision. Firms were undertaking IT outsourcing to change the organizational boundaries, to restructure, to mitigate technological risk and uncertainty, to access emerging technology, to manage the IS department better, and to link business and IT strategy.

Understanding and measuring user competence

End User Computing (EUC) is experiencing a resurgence of importance as managers realize it is tied to the new knowledge economy through knowledge-worker productivity. Assessing individuals capabilities with respect to end user technologies is central to both research on EUC and management of EUC in organizations. For this reason, we advance a new construct, User Competence, which is multi-faceted. It is composed of an individuals breadth and depth of knowledge of end user technologies, and his or her ability to creatively apply these technologies (finesse). Several issues are explored, including what User Competence means, how users differ in their capability, and how these differences relate to other individual characteristics. The experimental study of 100 subjects shows that the dimensions of competence relate differently to individual factors, such as gender, education, self-efficacy, and specific software-syntax skills. Reasons for and implications of these observed relationships are discussed.

Effective IT outsourcing arrangements

IT outsourcing is about contracting technology services to a third-party but involves much more than the contractual definition of the arrangement. Structuring the alliance, managing the relationship and planning for the business must complement the contractual arrangements. It is not until all of these elements are aligned that IT outsourcing is likely to succeed. Each outsourcing activity has a variety of choices which when combined can result in perceptually different IT outsourcing contracts. Arrangements can vary from service bureau-type transactional processing in a buyer/seller contractual stance to a strategic partnership in a gain-risk sharing contractual stance. These extremes look completely different, involve different behaviours and serve different business objectives. At the transaction-oriented extreme, the emphasis is put on the contract and on achieving narrowly focused business goals, while at the relationship-oriented extreme of the relationship possibilities, the emphasis is put on achieving broad business-wide business goals and on developing a partnership with exhibited behaviours of reciprocity, forbearance and avoiding opportunism, which are all meant to build trust. Companies considering IT outsourcing must decide which arrangement is suitable for their purposes and build in the appropriate behaviours through all aspects of the arrangement.

Experience effects on the accuracy of self-assessed user competence

Self-managed learning is the normal way that users learn to work with software within organizations. To be effective, self-managed, learning requires individuals to self-assess their IT knowledge; accurate self-assessment helps them optimize the capabilities they possess and be aware of those they do not. This study demonstrated that, in general, individuals did not accurately self-assess their knowledge of the software they used. However, we also found that the accuracy of self-assessment increased with greater experience in, and better understanding of, IT domains.Organizations need to recognize the self-assessment problem to facilitate effective software learning and to gain the most from their software investments.

Complexities in IS sourcing: equifinality and relationship management

Growth in IS outsourcing spurred research in the area that spans many perspectives but contains contradictory findings. Inconsistent findings raise confusion and doubt, leaving managers uncertain about IS sourcing directions and researchers unclear about theoretical perspectives relevant to IS sourcing.We argue that the concept of equifinality accounts for much of this confusion. Equifinality suggests that, in the struggle to match conflicting functional demands with structural options, many equally viable alternatives may exist. For IS sourcing, this means that different sourcing choices can be leveraged producing similar IS capabilities. Thus, embracing equifinality requires that we understand more fully the complexities in the IS function and in the range of sourcing options available. We argue, as well, that the existence of multiple paths raises the importance of implementation and execution issues.Illustrating the complexities of the IS function, we outline several IS function elements, including IT resources, IS activities and IS strategy. An IS-Business Partnering framework is then presented demonstrating the multiplicity of partnering options, situating sourcing as one aspect. We conclude with several company illustrations showing these multiplicities for successful company outcomes.For IS sourcing researchers, equifinality holds important implications. No longer can we afford to view the IS function as a homogeneous entity nor can we limit our scope to a narrow range of sourcing and partnering options. More than one path exists to achieve a particular outcome. Hence, the pursuit in IS sourcing research can no longer be for one good answer but for a few good answers.

Spiraling Effect of IS Outsourcing Contract Interpretations

Information Systems (IS) outsourcing is the contracting out of technology services to a third party but involves much more than the contractual definition of that arrangement. Structuring the alliance, managing the relationship and planning for the business must complement the contractual arrangements. Although spiraling effects from the interaction of these elements can propel the relationship quickly along a chosen path, it is not until all of these elements are aligned that IS outsourcing is likely to succeed (McFarlan & Nolan 1995; Fitzgerald & Willcocks 1994). As will be seen through the tale of two IS contracts, many different combinations can be successful. The tale of two IS outsourcing contracts sets the stage and illustrates these different behaviors and the different business objectives. Four additional cases are used to extend the findings. At one extreme, the transaction-oriented buyer/seller extreme, the emphasis is put on the contract and on achieving more narrowly focused business goal. While at the other extreme, the relationship-oriented strategic partnership extreme, the emphasis is on achieving broad company-wide business goals and on developing a partnership with exhibited behaviors of reciprocity, forbearance and opportunism avoidance, which are all meant to build trust. Spiraling influenceluence of these interactions are shown to build quickly. A company considering IS outsourcing must decide which arrangement is suitable for its purposes and must build behaviors to mitigate business and technical uncertainty and reinforce the contractual definition and the interpretive flexibility pursued within the chosen arrangement. In a presentation of these possible scenarios, relationship management is shown to benefit all and gains control of the spiraling effects.

Modelling and measuring end user sophistication

This paper reports findings from a study designed to develop and test a questionnaire instrument for measuring the sophistication of users in end user computing. Drawing from previous research and from semi-structured interviews of31 end users, an initial simple model of EUC sophistication was developed. An instrument was then created from the model, pilot tested, then administered to a sample of 74 end users in two organizational units. Data from this administration are presented and analyzed, and potential practical and research applications for the instrument are discussed.

Assessing Web-Enabled Interactivity: An Audit Tool

As business models evolve to integrate technology with organizational strategy and marketing, the application of Web technology to facilitate end-user interactions, or what we call Web-enabled interactivity, has become increasingly important to customer relationships. This article develops and introduces the Web-Enabled Interactivity Self-Evaluation tool (referred to as WISE). Two case studies are used to illustrate how managers can use WISE to develop a thorough, easily communicated profile of their Web-enabled interactivity capabilities upon which competitive positioning assessments can also be made. The information generated by the audit process is intended to help firms enhance their interactive communication with Web site users in a market-oriented manner.

Strategic IS alignment: the necessity for a hybrid framework linking shared vision, leadership, change management and diffusion theory

The rapid pace of business process change, partially fueled by information technology, is placing increasingly difficult demands on the organization. In many industries, organizations are required to evaluate and assess new information technologies and their organization-specific strategic potential, in order to remain competitive. The scanning, adoption and diffusion of this information technology must be carefully guided by strong strategic and technological leadership in order to infuse the organization and its members with strategic and technological visions, and to coordinate their diverse and decentralized expertise. This view of technological diffusion requires us to look beyond individuals and individual adoption, toward other levels of analysis and social theoretical viewpoints to promote the appropriate and heedful diffusion of often organization-wide information technologies. Particularly important is an examination of the diffusion champions and how a feasible and shared vision of the business and information technology can be created and communicated across organizational communities in order to unify, motivate and mobilize technology change process. The feasibility of this shared vision depends on its strategic fit and whether the shared vision is properly aligned with organizational objectives in order to filter and shape technological choice and diffusion. Shared vision is viewed as an organizational barometer for assessing the appropriateness of future technologies amidst a sea of overwhelming possibilities. We present a theoretical model to address an extended program of research focusing on important phases during diffusion, shared vision, change management and social alignment. We also make a call for further research into these theoretical linkages and into the development of feasible shared visions.