• Journal of Internet Computing and Services
    ISSN 2287 - 1136 (Online) / ISSN 1598 - 0170 (Print)
    https://jics.or.kr/
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Effects of Formal and Informal Control Combination on Information Systems Outsourcing Consequence: Based on IT Governance Perspectives


Jong-Man Lee, Journal of Internet Computing and Services, Vol. 11, No. 2, pp. 155-164, Apr. 2010
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Keywords: IS Outsourcing, IT Governance, Contract, trust, Management Capability

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.


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Cite this article
[APA Style]
Lee, J. (2010). Effects of Formal and Informal Control Combination on Information Systems Outsourcing Consequence: Based on IT Governance Perspectives. Journal of Internet Computing and Services, 11(2), 155-164.

[IEEE Style]
J. Lee, "Effects of Formal and Informal Control Combination on Information Systems Outsourcing Consequence: Based on IT Governance Perspectives," Journal of Internet Computing and Services, vol. 11, no. 2, pp. 155-164, 2010.

[ACM Style]
Jong-Man Lee. 2010. Effects of Formal and Informal Control Combination on Information Systems Outsourcing Consequence: Based on IT Governance Perspectives. Journal of Internet Computing and Services, 11, 2, (2010), 155-164.