Cahier de recherche NÂ°12 - ESC Pau

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4. Methodology for Re-EvaluationA logistic regression and content analysis was used as methodology for re-evaluation of the sourcingmodel. The “observed sourcing decision” of the managers was used as the dependent variable.Information regarding EC initiatives was obtained from the Factiva database. Factiva and the Dow JonesInteractive database merged as of April 2003. Factiva is a searchable full-text database of nearly 8,000newswires, newspapers, magazines and trade journals. It also has comparative data on companies andindustries and company SEC filings. Since EC initiatives are typically announced publicly in reasonabledetail through the business press, information regarding such initiatives was collected using a full-textsearch of announcements made by companies. The period of 2001-2002 was used. The content analysisscheme was used to classify the announcements. The coding was done with the help of the contentanalysis software, Nvivo 2.0 Educational package. Nvivo is a software program for professional supportand training for qualitative research. It allows for data analysis and enables quick coding of the announcementsand easy retrieval once a coding scheme has been defined. It also facilitates quick searchof documents and easy ad hoc creation of coding schemes. The software also enables quick recovery ofsections in the project that have been coded for specific variables.Hypothesis Number Hypothesis Literature’s principal citationsH1 The business’ sourcing mode will Ang & Straugh, 1998tend toward outsourcing as theextent of cost savings expectedfrom outsourcings increases.H2 Prior IT outsourcing experience will Beach, 1997; Lacity & Willcocks, 1998positively influence the extent ofIT cost savings expectedH3The client’s prior IT outsourcingexperience will moderate therelationship between IT cost savingsexpected and the sourcing mode.As prior experience increases, thesourcing mode tends toward outsourcing. Keil, 2000; Sitkin & Weingart, 1995Table 1: Research hypotheses for sourcing mode choice in EC non linear systemsVariable Name Type DefinitionObserved sourcing Dependent Variable Completed external partnershipsdecisionfor IT functions in the pastRelationship structure Independent Variable Joint venture, minority equity stake,or contractual relationshipCost savings Independent Variable Expectations to reduce IT coststhrough outsourcingIT business potential Independent Variable Expectation that the activity will helpin the discovery of new IT based businessapplications for the futureTable 2: Explanation of the Variables to be StudiedCAHIERdeRECHERCHE N°1227
Since EC initiatives were a significant event for firms during the period studied, they were typicallyannounced publicly in reasonable detail through the business press. One noted asset in informationretrieval and data collect was the researchers’ backgrounds as Publishers and Editors of U.S. newspapers.Information regarding such initiatives was collected using a full text search of announcementsmade by companies for the proposed period of 2001-2002 in the two leading newswires: PRNewswireand BusinessWire. These newswires provided comprehensive coverage of public announcements byfirms, were available on Factiva’s database, and have been used in prior IT research (Subramani &Walden, 1999). Relevant announcements were retrieved using a search string to match words in announcementsof interest. The goal, while selecting the search string, was to maximize the collection of relevantannouncements while screening out irrelevant announcements. After examining a number of candidateannouncements, the following search string was used and the resulting announcements werescanned to add relevant announcements to the Nvivo database:(co=) and ((dns=internet) or (key=EC )) and wc>300) and(lp=e-commerce or EC or e-business or e commerce or (online near1 business) or(online near1 sales))This string of code looks for announcements in the database that feature companies provided in the listfollowing the keyword “co”. The keywords “dns” and “key” denote the news category descriptor and keywordsrespectively and will be used to restrict the search to those announcements that related to theInternet or Electronic Commerce. This eliminated announcements made by companies that were notdirectly related to EC activities. “Wc” denoted word count and a minimum limit of 300 words was usedbecause many announcements were only for information purposes, where the press was informed aboutcertain activities without providing any relevant details. By eliminating announcements with small wordcounts, these researchers were able to focus attention on announcements that were more likely to haveinformation of interest. The final keyword “lp” denoted lead paragraph and was used to narrow theannouncements to those where some EC activity was mentioned in the lead paragraph. This eliminatedannouncements where EC was mentioned in passing but was not the focus of the announcement.These researchers hypothesized from years spent as a newspaper owners and publishers that there wouldbe significantly more information available for larger, publicly traded firms than for smaller firms.Therefore, to be consistent in the study, these researchers used the list of the Standard and Poor’s (S&P)500 firms as the basis for search. For over 140 years, the S&P has been the pre-eminent global providerof independent, widely recognized investment data, valuation, analysis, and opinions. S&P sets thestandard as the globally pre-eminent provider of independent, widely recognized investment data, valuation,and opinions. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, andindustry group representation and is one of the most widely used benchmarks of U.S. equity performance.Since the guiding principle for inclusion in the S&P 500 index is “leading companies in leadingindustries”, the companies in this group were typically large firms and their performance significantlyaffected their own industries, in particular, and the overall economy, in general. Though the searchresults occasionally yielded announcements by firms outside the S&P 500, the vast majority of theannouncements used in the research were related to initiatives by firms in the S&P 500.The researchers found that some of the announcements needed to be discarded since they were not usefulfor the study. Examples included topics on the setting up of Web sites with no clear commercial intentsuch as informational Web sites and content management arrangements. Similarly, these researchersalso were aware that announcements regarding partnerships between two or more software firms to developnew software services to help clients leverage the Internet also did not contribute to the research andwere discarded.28CAHIERdeRECHERCHE N°12
Page 1 and 2: CAHIERdeRECHERCHE N°12Institut de
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Page 11 and 12: 2.2 Virtual IntegrationOne of the b
Page 13 and 14: Option 1 Option 2Attribute x1 at it
Page 15 and 16: 4. Case studyThe XYZ Trucking Compa
Page 17 and 18: Insights from Value Assessment: All
Page 21 and 22: AbstractElectronic commerce (EC) in
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Page 31 and 32: 6. Conceptual AnalysisTraditionally
Page 33 and 34: 8.1 Sourcing ModePrior research has
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Page 69 and 70: AbstractThe significance of context
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From the present perspective, stand
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ReferencesAhire, S.L. and Ravichand
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