Testing resource‐based propositions about IS sourcing decisions

This research analyzes and tests the impact of some resource‐based determinants on sourcing decisions in an IS domain.

By applying the insights provided by the resource‐based view of the firm, some hypotheses to explain sourcing decisions regarding the implementation of an information system was developed. These hypotheses are tested in a specific functional area – human resources – using binomial logistic models. Primary data was collected through a survey of large Spanish firms.

Results confirm that HRIS implementation capabilities, and not the mere set of technical skills, play a major role in sourcing decisions. However, only when a specific level of both experience in that function and relationship between client and provider teams is reached will these capabilities allow the firm to outperform competitors and become a key determinant of the governance mode. Support for the influence of the strategic contribution of the HRIS was also found.

Unlike prior research, which stopped with the theoretical application of a resource‐based perspective to explain IS sourcing decisions, the author takes things a step further and operationalizes its insights. By using the IS function as the unit of analysis, a theoretically derived multidimensional measure of IS implementation capability was developed. Moreover, timing issues was considered when measuring this concept.