How interpersonal conflicts influence IS‐sourcing decisions

Frameworks on information systems‐sourcing (IS‐sourcing) decisions are frequently based on rational‐choice theory, neglecting such non‐quantifiable aspects as interpersonal conflicts. The purpose of this paper is to find out whether such interpersonal conflicts have a determining influence on an organization's IS‐sourcing decision.

An illustrative case‐study strategy is applied.

The following interpersonal conflicts had a determining influence on an organization's IS‐sourcing decision: tensions between personnel in the IS department and those in the users' departments; lack of capabilities on a personal level; power in and between departments; and face‐saving in the corporate group. Based on these empirical findings, a generic model is developed to illustrate how interpersonal conflicts enmesh with economic, business, and technical factors, and influence IS‐sourcing decisions.

The generic model enables researchers to study IS‐sourcing decisions better. It enriches previous research on IS‐sourcing decisions and alerts researchers that they need to cope with non‐quantifiable aspects that can have an impact on IS‐sourcing decisions.

Once managers understand how interpersonal conflicts can influence an organization's IS‐sourcing decision, they can assess their own organizations more accurately and estimate outcomes of particular IS‐sourcing decisions more realistically. Thus, this paper enables organizations to make better IS‐sourcing decisions, thereby – in the long run – helping them to use IS more effectively in their attempts to improve their business performances and competitive advantages.

This paper extends previous research on IS‐sourcing and fills a gap in traditional frameworks on IS‐sourcing decisions. It illustrates how various types of interpersonal conflicts enmesh with economic, business, and technical factors, and influence IS‐sourcing decisions.