Do service-oriented IT architectures facilitate business process outsourcing?

How does a firm’s IT architecture affect its potential to outsource business processes? As Information Technology (IT) has become many firms’ essential operational infrastructure or “backbone”, we are interested in scrutinizing to what extent the kind of IT architecture affects a firm’s boundaries or the plasticity of its boundaries. Focusing on the particular concept of service-oriented architectures (SOA), we concretely ask: How does SOA affect business process outsourcing potentials? Since SOA is widely expected to modularize the IT implementation of business processes, it should increase business process outsourcing (BPO) in terms of buying in the provision of single business functionalities. We develop and empirically evaluate a theoretical model that conceptualizes the relationship between SOA and BPO. Questionnaire data from 115 firms give first evidence that SOA facilitates BPO. By increasing IT modularity, SOA supports BPO by increasing sourcing flexibility and, in particular, operational benefits, while at the same time lowering financial risks and strategic risks, such as lock-in. Overall, however, firms see SOA-based BPO mainly in an operational context with low hidden costs and little strategic benefits.     

Interactionism in the age of ubiquitous telecommunication

ABSTRACT

The following paper aims to engage recent reconsiderations of Gibson’s theory of affordances and Goffman’s concept of copresence in the context of the material turn – especially in the form expressed by Bruno Latour’s actor-network theory. The paper’s central claim is that microsociology cannot avoid engaging material turn theory. It will be argued that contemporary attempts to reconceptualize classical microsociological frameworks set out on a path that invariably leads to problems investigated by thinkers like Latour: as communication technology advances, the importance of mediated interaction grows, prompting attempts to update interactionism for non-face-to-face interactions such as teleconferencing, social networks and virtual reality. These new social situations are then made sense of in terms of the way these technologies have a transformative effect on interaction. This effect ? be it a modifier of the temporal structure of the interaction, or of the interactional capacity of the agents ? is argued to always lead back to a central question of the material turn: if technology is a static transformational effect, where is its agency? Or, conversely: if a technological object’s effect is uniform across all external factors, how is that not a form of technological determinism? The paper investigates whether attempts to avoid determinism manage to keep Latourian metaphysics at bay. The paper concludes by suggesting that contemporary social theory must work towards a middle way that does not gloss over important contributions of material turn theorists whilst also not ignoring the importance of considering human political responsibility.     

Why does myopia decrease the willingness to invest? Is it myopic loss aversion or myopic loss probability aversion?

For loss averse investors, a sequence of risky investments looks less attractive if it is evaluated myopically—an effect called myopic loss aversion (MLA). The consequences of this effect have been confirmed in several experiments and its robustness is largely undisputed. The effect’s causes, however, have not been thoroughly examined with regard to one important aspect. Due to the construction of the lotteries that were used in the experiments, none of the studies is able to distinguish between MLA and an explanation based on (myopic) loss probability aversion (MLPA). This distinction is important, however, in discussion of the practical relevance and the generalizability of the phenomenon. We designed an experiment that is able to disentangle lottery attractiveness and loss probabilities. Our analysis reveals that mere loss probabilities are not as important in this dynamic context as previous findings in other domains suggest. The results favor the MLA over the MLPA explanation.     

What Nonprofit Executives Want and What They Get from Board Members

In theory, nonprofit boards of directors exist to perform mission‐setting and oversight functions that help to ensure organizational accountability. Yet there is evidence that board behavior often falls short of this ideal. Using survey data from a sample of 241 executive directors of nonprofit agencies, we investigated whether nonprofit boards are meeting executive directors’ expectations, and if not, what factors explain this? We find that although board behavior tends to align closely with executive directors’ preferences for involvement in administration and management tasks, there is a greater disconnect between board behavior and executive directors’ preferences for involvement in mission‐setting and oversight duties. Factors that mitigate this gap include organizational professionalization and stability, whereas more extensive reliance on government funding exacerbates it. Female executive directors experience a greater disconnect in their preferences for board involvement and actual board involvement than male executive directors. We conclude by discussing the implications of our findings for both theory and practice.     

Comparing the Quality of Data Obtained by Minimally Balanced and Fully Balanced Attitude Questions

When measuring attitudes with questions that offer dichotomous,mutually exclusive response options, researchers can ask "fullybalanced" questions (which fully state both competing pointsof view) or "minimally balanced" questions (which fully stateone viewpoint and only briefly acknowledge the second viewpoint).The two studies reported here investigated whether the greaterefficiency of the latter approach brought with it reductionsin the quality of the data obtained. Two experiments embeddedin national sample surveys showed that minimally balanced andfully balanced attitude questions yielded similar distributionsof responses and that responses to the two question forms wereequivalent in terms of concurrent validity. These studies suggestthat greater efficiency can be achieved via minimal balancingat no cost in terms of data quality.     

Statistical Corrections of Invalid Correlation Matrices

Suppose estimates are available for correlations between pairs of variables but that the matrix of correlation estimates is not positive definite. In various applications, having a valid correlation matrix is important in connection with follow‐up analyses that might, for example, involve sampling from a valid distribution. We present new methods for adjusting the initial estimates to form a proper, that is, nonnegative definite, correlation matrix. These are based on constructing certain pseudo‐likelihood functions, formed by multiplying together exact or approximate likelihood contributions associated with the individual correlations. Such pseudo‐likelihoods may then be maximized over the range of proper correlation matrices. They may also be utilized to form pseudo‐posterior distributions for the unknown correlation matrix, by factoring in relevant prior information for the separate correlations. We illustrate our methods on two examples from a financial time series and genomic pathway analysis.