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Development of Measures to Assess Dimensions of IS Operation Transactions

Information Systems (IS) researchers often rely on organizational economics models to describe and explain various IS management issues. While those models are found to be useful, measures are yet to be proposed to assess the dimensions of IS transactions. In this paper, we present the results of a study that was a first effort toward this end. The focus of the study was on one type of transaction, IS operations, in a particular management context, that of outsouring. Measures were developed for four critical dimensions of IS operation transactions: asset specificity, measurement problem, origin of the most important investment, and governance mechanism. Data from 250 large Canadian firms were used to assess the measures, using the Partial Least Squares (PLS) technique.
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