Towards a Design Theory for Customer Satisfaction-Oriented IT Vendor Management

IT vendor management (ITVM) plays an increasingly relevant role for IT organizations; many companies already spend more than half their IT budgets on services from external providers. These providers are often in direct contact with internal IT and business staff, thus significantly impacting their satisfaction. Although recent studies reveal that companies are often dissatisfied with external IT suppliers, the ITVM literature does not propose practices that directly address customer satisfaction. We extend the ITVM literature by developing a design theory for customer satisfaction-oriented ITVM. To answer our research question, we have been conducting an action research study at a professional service company. Our work makes a twofold contribution. First, we present generalized design principles (DP) for implementing customer satisfaction-oriented ITVM. Second, we explain why these DPs should be considered by organizations seeking to enhance customer satisfaction and how these DPs should be implemented.

[1]  K. Eisenhardt Agency Theory: An Assessment and Review , 1989 .

[2]  Richard Baskerville,et al.  Generalizing Generalizability in Information Systems Research , 2003, Inf. Syst. Res..

[3]  Susan A. Brown,et al.  Strategic IS Sourcing and Dynamic Capabilities: Bridging the Gap , 2005, Proceedings of the 38th Annual Hawaii International Conference on System Sciences.

[4]  L. Willcocks,et al.  IT outsourcing as strategic partnering: the case of the UK Inland Revenue , 1998, European Conference on Information Systems.

[5]  Omar El Sawy,et al.  Building an Information System Design Theory for Vigilant EIS , 1992, Inf. Syst. Res..

[6]  J. Aken Management Research Based on the Paradigm of the Design Sciences: The Quest for Field-Tested and Grounded Technological Rules , 2004 .

[7]  C. Saunders,et al.  Achieving Success in Information Systems Outsourcing , 1997 .

[8]  G. Susman,et al.  An Assessment of the Scientific Merits of Action Research. , 1978 .

[9]  J. J. Cronin,et al.  Some New Thoughts on Conceptualizing Perceived Service Quality: A Hierarchical Approach , 2001 .

[10]  John C. McCarthy,et al.  Technology as experience , 2004, INTR.

[11]  Joan Ernst van Aken,et al.  Design Science and Organization Development Interventions Aligning Business and Humanistic Values , 2007 .

[12]  Lance A. Bettencourt,et al.  Customization of the service experience: the role of the frontline employee , 1996 .

[13]  L. Willcocks,et al.  ABOUT THE PRESENTER: , 2002 .

[14]  Jérôme Barthélemy,et al.  The Hard and Soft Sides of IT Outsourcing Management , 2003 .

[15]  Anthony DiRomualdo,et al.  Strategic Intent for IT Outsourcing , 1998 .

[16]  R.I.A. Mercuri,et al.  Technology as Experience , 2005, IEEE Transactions on Professional Communication.

[17]  Richard Baskerville,et al.  Investigating Information Systems with Action Research , 1999, Commun. Assoc. Inf. Syst..

[18]  Salvatore T. March,et al.  Design and natural science research on information technology , 1995, Decis. Support Syst..

[19]  Mary Jo Bitner,et al.  Evaluating service encounters: The effects of physical surroundings and employee responses. , 1990 .

[20]  Martin Bichler,et al.  Design science in information systems research , 2006, Wirtschaftsinf..

[21]  A. Kakabadse,et al.  Trends in Outsourcing:: Contrasting USA and Europe , 2002 .

[22]  Richard T. Watson,et al.  Analyzing the Past to Prepare for the Future: Writing a Literature Review , 2002, MIS Q..

[23]  Jan Pries-Heje,et al.  Explanatory Design Theory , 2010, Bus. Inf. Syst. Eng..

[24]  Jay F. Nunamaker,et al.  Systems Development in Information Systems Research , 1990, J. Manag. Inf. Syst..

[25]  Veda C. Storey,et al.  Design science in the information systems discipline: an introduction to the special issue on design science research , 2008 .

[26]  E. Guba,et al.  Lincoln, Yvonna, and Egon Guba, "Postpositivism and the Naturalist Paradigm," pp. 14-46 in Yvonna Lincoln and Egon Guba, Naturalistic Inquiry . Beverly Hills, CA: Sage, 1985.* , 1985 .

[27]  Leslie P. Willcocks,et al.  An Empirical Investigation of Information Technology Sourcing Practices: Lessons From Experience , 1998, MIS Q..

[28]  A. S. Kunnathur,et al.  IS outsourcing management competence dimensions: instrument development and relationship exploration , 2005, Inf. Manag..

[29]  M. Hui,et al.  Perceived Control and the Effects of Crowding and Consumer Choice on the Service Experience , 1991 .

[30]  Leslie P. Willcocks,et al.  Exploring information technology outsourcing relationships: theory and practice , 2000, J. Strateg. Inf. Syst..

[31]  Heiko Gewald,et al.  A Governance Model for Managing Outsourcing Partnerships: A View from Practice , 2006, Proceedings of the 39th Annual Hawaii International Conference on System Sciences (HICSS'06).

[32]  Qiong Wang,et al.  Optimizing vendor selection in a two-stage outsourcing process , 2007, Comput. Oper. Res..

[33]  Gregory M. Magnan,et al.  Evaluating the bases of supplier segmentation: A review and taxonomy , 2010 .

[34]  C. R. Greer,et al.  Human resource management outsourcing: The make or buy decision , 1999 .

[35]  Young-Gul Kim,et al.  Effect of Partnership Quality on IS Outsourcing Success: Conceptual Framework and Empirical Validation , 1999, J. Manag. Inf. Syst..

[36]  Ruben Chumpitaz Cáceres,et al.  Service quality, relationship satisfaction, trust, commitment and business‐to‐business loyalty , 2007 .

[37]  Rikard Lindgren,et al.  Design Principles for Competence Management Systems: A Synthesis of an Action Research Study , 2004, MIS Q..

[38]  Sabine Matook,et al.  Supplier development with benchmarking as part of a comprehensive supplier risk management framework , 2009 .

[39]  Madeleine Järsjö,et al.  Purchasing Must Become Supply Management , 2013 .

[40]  Mitchell M. Tseng,et al.  Mapping customers' service experience for operations improvement , 1999, Bus. Process. Manag. J..

[41]  Shirley Gregor,et al.  The Anatomy of a Design Theory , 2007, J. Assoc. Inf. Syst..

[42]  Guy Fitzgerald,et al.  The IT outsourcing market-place: vendors and their selection , 1997, J. Inf. Technol..

[43]  Robert M. Davison,et al.  Principles of canonical action research , 2004, Inf. Syst. J..

[44]  Ying Fan Strategic outsourcing: evidence from British companies , 2000 .

[45]  L. Willcocks,et al.  Core IS Capabilities for Exploiting Information Technology , 1998 .

[46]  Ko de Ruyter,et al.  Merging service quality and service satisfaction. An empirical test of an integrative model , 1997 .

[47]  A. Strauss,et al.  Basics of qualitative research: Grounded theory procedures and techniques. , 1993 .

[48]  Nils Urbach,et al.  How to Steer the IT Outsourcing Provider , 2012, Business & Information Systems Engineering.