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Do costs matter in ASP sourcing decisions?

Author(s): Vincenzo Morabito | Stefano Pace

Journal: International Journal of Digital Accounting Research
ISSN 1577-8517

Volume: 6;
Start page: 121;
Date: 2006;
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Keywords: ASP | core competence | fluid capability | IS asset | IS capability | IS gap | IS resource | rental propensity | Resource Based Theory | sourcing decision

This paper on Application Service Providers investigates why organizations select anASP as a form of IS sourcing. To achieve this, we set the ASP within the context of literature onNeoclassical and Resource-Based View (RBW) theories. The results revealed that costs matterlittle in ASP sourcing decisions. The ASP is chosen not simply as a cost reducing alternative, butmoreover, when companies detect an IS gap. Our study presents some managerial implicationsthat affect both customers and ASPs.

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