Theory Testing and Case Studies Competencies Capabilities and

Theory Testing and Case Studies Competencies, Capabilities, and Information Technology: Analyzing Resources for Competitive Advantage in Russia Kalle Kangas (Ch. 11, pp. 190 – 213)

Out-Line What is Research? n What is a Theory? n Research Criteria n A Case Study n Discussion Questions n

What is Research? Executed according to a plan Directed n Purposive n Collection of data n To shed light on n A theory n Goal-oriented, with measurable objectives For empirical research, data are used to see if theory is “true” A sort of stress test for theories; if theory doesn’t hold water, then it’s false. A set of statements about reality, somewhat simplified, perhaps saying that X causes Y

Hypothetico-Deductive Method (Licker, 2006) Realm of Ideas and Thoughts Idea about Reality Implies Theory That are crafted into coherent Scientist Hypotheses Analyzed and compared to Data/ Views or Experience experiences phenomena in the real world Reality Focus on and has the ideas From which are gathered… Subjected to a real-world Test Focus on the test

Kinds of Theories n n n Pictorial: an image that stands for reality Descriptive: a set of dimensions that distinguish various elements or phenomena Associational: a set of statements that tell what phenomena appear or go together Causal: a set of statements that say that some phenomena cause other phenomena Implicational: a set of statements that say that some phenomena imply other phenomena Operational: a set of conditions that make things happen or cause parts of reality to reappear.

Examples of Theories n n n n The Neoclassical Theory The Bain Type Competition Model New Industrial Economies The Behavioral Theories of the Firm Agency Theory The Industrial Organization Approach Transaction Cost Theory Resource-Based Theory

Research Criteria Validity: are the results really about the research question? Are the data about phenomena what the research question is about? n Reliability: are the results replicable? Are they generalizable to a larger set of situations? n

A Case Study n Multiple meanings: ¨a unit of analysis (e. g. a case study of a particular organization) ¨ a research method n A case study is an empirical inquiry that investigates a contemporary phenomenon within its real-life context (Yin, 2002).

Positivist vs. Interpretative Positivist Research: reality is objectively given and can be described by measurable properties n Interpretative Research: access to reality (given or socially constructed) is only through social constructions such as language, consciousness and shared meanings n

Examples of Case Studies Markus (1983): A very well known example of case study research which clearly shows the importance of organizational context for the implementation of information systems. n Theories tested: Resistance to MIS n Unit of study: 2 locations in 1 organization n

Problems with a Single Case Study n Lee (1989) ¨ Controlled observations ¨ Controlled deductions ¨ Replicability ¨ Generalizability

Other References n n Orikowski & Baroudi (1991): An excellent overview of the underlying epistemological perspectives and assumptions in IS research. Benbasat, Goldstein, & Mead (1987): On case study method in IS Dubé & Peré (2003): On Positivist Case Research Walsham (1995): On Interpretive case studies in IS

Discussion Questions According to Kangas, Transaction Cost Theory is old, static, and doesn’t hold water now. Do you agree? n Try applying theory to Outsourcing. If the Transaction Cost Theory holds, what do you expect as a situation for outsourcing? n