Hypothesis Testing

Hypothesis Identification Article

Despite the decrease in information technology expenditure in the last several years, information technology outsourcing is still prevalent. The advantages for organizations to outsource information technology have been recorded, and research implies that information technology outsourcing can produce benefits for organizations, such as minimizing operation costs, developing technical proficiency, and even give organizations a competitive advantage. Numerous research studies investigate circumstances that either promote or prevent the practice of information technology outsourcing. This analysis will summarize and identify the hypothesis described in the article by Qu, Pinsonneault, and Oh (2011). The analysis will also explain whether the hypothesis was supported or rejected, and what the implications of the findings are for the research.

Identify and Summarize the Hypothesis

Research illustrates that the industrial information technology emphasis can have a positive, negative, or neutral impact on outsourcing usage. Additional research is necessary to improve the understanding in this area, which is the purpose of this examination by Qu, Pinsonneault, and Oh (2011). This article formulates upon organization principles and industrial organization economics to establish a new concept of industry circumstances based on munificence. Industry munificence pertains to the accessibility of resources in an industry. Any time there are a substantial amount of resources, an organization can survive rather easy.

The strategic priority for munificent industries is to grow in terms of range, whereas, survival is the priority for industries with limited resources. More growth opportunities are present in munificent industries than in non-munificent industries. Creating an adequate information technology foundation can demand an ample amount of time. Organizations in munificent industries can be reluctant to wait for the organization’s...