Outsourced Information Systems Failures in SMEs: A Multiple Case Study
Since the 1980s, a number of frameworks have been proposed for understanding the concept of Information System (IS) failure. Two approaches to IS failures seem particularly important: the concept of Expectation Failure and the concept of Termination Failure. The authors argue that there is an extra dimension to the problem that is not covered by those descriptive models, which they call the Outsourced IS Failure (OISF). To explain the OISF they draw on agency theory, which views the problems that occur in outsourced environments as the results of three factors: goal differences, risk behaviour differences and information asymmetry. Although the (positivistic) agency theory has already been used to describe phenomena of failure in IT relations there is still a lack of empirical evidence.