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Market reactions to E-business outsourcing announcements: An event study

  • University of South Florida

Research output: Contribution to journalArticlepeer-review

103 Scopus citations

Abstract

Stock markets have reacted favorably to firms who announced their implementation of E-business projects for commercial exploitation. Those that outsourced E-business projects in order to achieve swift execution also achieved abnormal positive returns. Contrary to expectations, outsourcing E-business projects with high task complexity also led to positive results. We analyzed the process and found that these three factors explained more than 20% of the variance in abnormal returns. The results were obtained from an event study of 96 E-business-related announcements, including those made by firms in the S&P500 index during 1999-2002. This paper contains information that should therefore help firms identify E-business projects for outsourcing.

Original languageEnglish
Pages (from-to)861-873
Number of pages13
JournalInformation and Management
Volume43
Issue number7
DOIs
StatePublished - Oct 2006

Keywords

  • Content analysis methodology
  • E-business projects
  • E-commerce projects
  • Event study methodology
  • IT capabilities
  • IT outsourcing
  • Project execution swiftness
  • Project task complexity
  • Software risk management
  • Sourcing strategic intent

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