Triangulation of Results across Independent Samples to Test Theory

• In Event: Emerging Research Session I: Issues in Auditing, Information Systems and Public Interest

Abstract

Using organizational control theory and a related model of firm level outsourcing capabilities, we analyze the effect of multiple organizational controls on outsourcing success. The first study is an archival study of listed firms that have announced large scale Information Technology (IT) and Business Process outsourcing (BPO) contracts. The abnormal returns (AR) around announcements are used as the dependent variable, and a proxy for success of outsourcing contracts as perceived by shareholders. The study draws upon a comprehensive dataset on outsourcing announcements for 2005-2007, augmented with hand collected data culled from public sources. This study shows that behavior controls and use of clan controls are positively related to outsourcing success. The second study is based on survey data collected from Chief Information Officers, and seeks to test the positive effects of formal and informal controls on outsourcing performance. These variables were measured through the use of standard scales and high quality sample frame. The results show that targeted behavior controls and clan controls are positively related to improved performance.
Looking across study results, behavior and clan controls stand out as commonalities in the results. Given limited replication of results in management research, the results above are interesting and valuable. These results add to extant understanding of the influence of informal management controls on outsourcing performance, and illustrate the use of triangulation to test theory.

Authors

• Pankaj Nagpal, Connecticut State University

• Kalle Lyytinen, Case Western Reserve University