Calculative Trust and Interfirm Contracts

2020 ◽  
Vol 66 (11) ◽  
pp. 5465-5484 ◽  
Author(s):  
Anjana Susarla ◽  
Martin Holzhacker ◽  
Ranjani Krishnan
Keyword(s):  
Information Technology ◽  
Past Research ◽  
Relational Trust ◽  
Control Instrument ◽  
Fixed Price ◽  
Cost Inefficiency ◽  
Future Potential ◽  
Past Experiences ◽  
Outsourcing Contracts ◽  
Calculative Trust

Interfirm contracts are plagued by opportunism arising from exchange hazards that increase the seller’s gains from holdup in fixed price contracts. These exchange hazards are higher when the seller can engage in unverifiable deliberate obfuscation. Although cost-plus contracts reduce holdup losses, they suffer from cost inefficiency. Past research has underscored the importance of trust as a control instrument to mitigate losses from exchange hazards, especially social relational trust that develops from past experiences. However, trust can also be calculative when it develops from the expectation of future economic gains to the buyer-seller dyad. We identify two dyadic mechanisms that generate calculative trust and curtail the likelihood of cost-inefficient behavior in cost-plus contracts. These mechanisms include future potential and bilateral reputation capital for cost containment. Analysis using probit estimations on 149 information technology outsourcing contracts for the period 1998 to 2005 suggests that calculative trust increases the likelihood of cost-plus contracts. Thus, calculative trust can mitigate inefficiencies in interfirm contracts. This paper was accepted by Shiva Rajgopal, accounting.

The Current State and Future Potential of Virtual Worlds

2011 ◽  
pp. 2535-2543
Author(s):  
John M. Artz
Keyword(s):  
Information Technology ◽  
Virtual Worlds ◽  
Second Life ◽  
Virtual World ◽  
Three Dimensional ◽  
Social Implications ◽  
Application Technology ◽  
Current State ◽  
Future Potential

Virtual worlds, while not a new phenomenon, have come to the foreground of information technology in the past few years largely due to the growth of Second Life, a three dimensional, global virtual world that has captured the imagination of millions. This article provides some background on this virtual world phenomenon providing both a history and a classification of virtual world technology. It then focuses on Second Life discussing the application, technology, and social implications. Included in the discussion are some current initiatives such as the open source client and server projects and the implications of those initiatives. Finally, we provide some speculation on the future potential of virtual world technology as an extrapolation of the current trajectory.

Prevention is Better than Cure

2011 ◽  
pp. 1341-1363
Author(s):  
Martin Dick ◽  
Judithe Sheard ◽  
Maurie Hasen
Keyword(s):  
Information Technology ◽  
Focus Groups ◽  
Past Research ◽  
Student Cheating ◽  
Aspect Model ◽  
Better Than

This chapter adopts a four aspect model to address cheating and plagiarism in universities – education, prevention, detection and consequence. The research focussed on the two aspects of education and prevention as the authors feel that this area has not been considered in detail by the research. Building on past research, a series of eight focus groups (72 students) were conducted with students from information technology degrees at an Australian university. The students were asked to comment and discuss the phenomenon of cheating from their perspective. The chapter presents in detail the responses of the students as analysed by the researchers and then builds a set of guidelines for educators to use in the areas of education and prevention in relation to student cheating.

Advertising in the Networked Environment

2011 ◽  
pp. 15-22 ◽  
Author(s):  
Savvas Papagiannidis ◽  
Michael Bourlakis
Keyword(s):  
Information Technology ◽  
Electronic Media ◽  
Marketing Channels ◽  
The Internet ◽  
Wireless Devices ◽  
Mobile Wireless ◽  
Profound Impact ◽  
Business Operations ◽  
Technology Changes ◽  
Future Potential

Advances in technology, in particular the Internet and mobile/wireless devices, have significantly affected business operations. As technology changes, communicating and interacting with customers could not be left untouched; the dot.com era saw many new forms of marketing emerge on the electronic landscape. In this article, we discuss the possible marketing implications of the convergence of electronic media focusing on the delivery of advertising messages. We acknowledge the profound impact of information technology on marketing channels (Leek, Turnbull, & Naude, 2003) and use examples of various technologies to present changes that occurred in existing channels to illustrate the future potential of emerging channels. For each of the above, we provide examples of applications that can potentially be integrated to deliver advertising convergence.

Information Systems/Information Technology Outsourcing in Spain

2011 ◽  
pp. 372-402 ◽  
Author(s):  
Felix R. Doldán Tie ◽  
Paula Luna Huertas ◽  
Francisco Jose Martínez Lopez ◽  
Carlos Piñeiro Sanchez
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Empirical Study ◽  
It Outsourcing ◽  
Extensive Literature ◽  
Related Services ◽  
Management Structure ◽  
Quantitative Studies ◽  
Information Technology Outsourcing ◽  
Outsourcing Contracts

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.

Strategic and Ethical Issues in Outsourcing Information Technologies

2011 ◽  
pp. 232-248 ◽  
Author(s):  
Randall C. Reid ◽  
Mario Pascalev
Keyword(s):  
Information Technology ◽  
Information Technologies ◽  
Ethical Issues ◽  
Cost Benefit ◽  
Codes Of Ethics ◽  
Professional Organizations ◽  
Ethical Standards ◽  
Ethical Guidelines ◽  
External Vendors ◽  
Outsourcing Contracts

Outsourcing of information technology (IT) is the transfer of a company’s information technology functions to external vendors. Ordinarily, such transfer is considered only with regard to its strategic and economic impact on the organization. However, as the recent practice demonstrated, cost-benefit considerations and other strategic considerations are not sufficient to analyze an outsourcing case. Important ethical concerns relating to fiduciary responsibilities, insiders’ bidding for outsourcing contracts, and the like, are also pertinent to the analysis of outsourcing. This chapter will identify major ethical problems and will propose guidelines for ethical conduct in the process of outsourcing IT. Such guidelines could have broad practical implications for the practice of outsourcing. The chapter will analyze literature on outsourcing models and professional ethical standards. It will have the following structure. First, the benefits and models of outsourcing information technology will be discussed. Second, ethical literature in general and professional organizations’ codes of ethics in particular will be considered. Third, a recent case of IT outsourcing will be presented and analyzed. The ethical standards established in the thesis will be applied to the case. Finally, generalized ethical guidelines will be suggested for outsourcing models.

scholarly journals “Integrating OD, HR and Change Management: Strategies for Sustained Success”—Insights on AODN and Foresights on Application of OD to Educational Systems

2020 ◽  
Vol 4 (10) ◽  
Author(s):  
Xiaolong Feng
Keyword(s):  
Information Technology ◽  
Change Management ◽  
Significant Role ◽  
21St Century ◽  
Potential Application ◽  
Management Strategies ◽  
Educational Systems ◽  
The Usa ◽  
Future Potential ◽  
Sustained Success

Organizations are facing unprecedented challenges in the 21st century and OD plays a significant role in creating effective responses to these changes. Not only has it been applied in the USA but gains popularity in dynamic Asian region under the megatrend of globalization and information technology. This paper gains insight from Asia Organization Development (OD) Network Summit and discusses future potential application of OD to educational systems.

Information Systems/Information Technology Outsourcing in Spain

2010 ◽  
pp. 1333-1359
Author(s):  
Felix Doldan Tie ◽  
Paula Luna Huertas ◽  
Francisco Jose Martinez Lopez ◽  
Carlos Pineiro Sanchez
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Empirical Study ◽  
It Outsourcing ◽  
Extensive Literature ◽  
Related Services ◽  
Management Structure ◽  
Quantitative Studies ◽  
Information Technology Outsourcing ◽  
Outsourcing Contracts

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.

When can you trust “trust”? Calculative trust, relational trust, and supplier performance

2015 ◽  
Vol 37 (4) ◽  
pp. 724-741 ◽  
Author(s):  
Laura Poppo ◽  
Kevin Zheng Zhou ◽  
Julie J. Li
Keyword(s):  
Relational Trust ◽  
Supplier Performance ◽  
Calculative Trust

The Origins of Trust Asymmetry in International Relationships: An Institutional View

2020 ◽  
Vol 28 (2) ◽  
pp. 81-101
Author(s):  
Mengyang Wang ◽  
Qiyuan Zhang ◽  
Kevin Zheng Zhou
Keyword(s):  
Relationship Marketing ◽  
Institutional Distance ◽  
Relational Trust ◽  
Supplier Relationships ◽  
Cross Border ◽  
Exchange Performance ◽  
Different Types ◽  
Institutional Origins ◽  
Institutional View ◽  
Calculative Trust

Trust is key to relationship marketing. Although trust is bilateral, studies on the dispersion of trust among exchange parties remain limited, leaving the antecedents and outcomes of trust asymmetry largely underexplored. To fill the gaps, this study empirically examines the effects of different types of trust asymmetry on exchange performance and then investigates the institutional origins of trust asymmetry in international interfirm exchanges. Drawing on a survey of 134 international buyer–supplier relationships in China, the study finds that both calculative trust asymmetry and relational trust asymmetry have negative influences on exchange performance. The study also finds that formal institutional distance constrains calculative trust asymmetry and informal institutional distance increases relational trust asymmetry. Moreover, prior interactions and expectations of continuity significantly moderate the effects of formal and informal institutional distance. This study advances trust studies in cross-border settings.

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