Document Type

Dissertation

Degree

Doctor of Philosophy

Major

Business Administration

Date of Defense

4-23-2012

Graduate Advisor

Dr, Mary Lacity

Committee

Natalia Mintchik, Ph.D.

Dinesh Mirchandani, Ph.D.

Joseph Rottman, D.Sc.

Abstract

This study explores the extent to which organizations are responsive to pressures from institutional constituents against offshoring of information technology and business processes. Drawing on a theoretical framework that integrates institutional and strategic explanations, it proposes that organizational responsiveness to anti-offshoring institutional pressures is a function of both the characteristics of such pressures as well as organizations’ prior success with offshoring. Results based on moderated hierarchical multiple regression analyses on survey data from 84 offshoring client organizations indicate the following. First, both greater organizational expectations of enhanced social legitimacy obtained from compliance and mimetic influences from other organizations led to greater organizational responsiveness. Second, despite the strong precedent, organizational dependence on a key pressuring constituent had no effect. Third, both conflict of institutional expectations with organizational goals and greater regulatory environment uncertainty reduced responsiveness. Fourth, surprisingly, organizational success with offshoring had no direct effect on responsiveness. However, it attenuated the otherwise strong positive effect of social legitimacy and exacerbated the negative effect of regulatory environment uncertainty. Implications of these findings for research and practice are discussed.

Included in

Business Commons

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