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

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

3. What is Research? Directed Purposive Collection of data To shed light on A theory Executed according to a plan 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

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

5. Kinds of Theories 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.

6. Examples of Theories 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

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

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

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

10. 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. Theories tested: Resistance to MIS Unit of study: 2 locations in 1 organization

11. Problems with a Single Case Study Lee (1989)  Controlled observations  Controlled deductions  Replicability  Generalizability

12. Other References 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

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