Purpose – Most firms select their information technology outsourcing (ITO) vendors based on the two methods of the weighted‐criteria evaluation technique – the “qualification score plus the lowest bid price for the highest price score (QS‐LBHPS)” and the “qualification score plus the average bid price for the middle price score (QS‐ABMPS).” This paper aims to understand whether these two methods provide the same or different results of vendor selection and how the proportional weights of a vendor's qualification and bid price affect the vendor selection results under the two methods. Design/methodology/approach –In total, 1,000 experimental tests were carried out using the developed spreadsheet template to examine vendor selection results of the two methods (QS‐LBHPS and QS‐ABMPS) and compare the vendor selection results under three conditions of vendors’ qualification and price weights. A correspondence analysis was also used to determine the proximal relationships among the selection results of the weighted criteria technique under the comparable methods. Findings – The results indicate that, when using the two methods of the weighted criteria technique for a vendor selection, the selection results are significantly correspondent. In addition, the proportions of qualification and price weights affect the selection results under the two methods. The different proportions of qualification and price weights under the two methods yield the same selection results rather than different results. Originality/value – This study fills the gap in ITO literatures concerning the vendor selection strategy. No empirical studies have been undertaken to compare the results of vendor selection under the two methods of the weighted‐criteria evaluation technique. The findings enable a firm's selection team to apply the weighted‐criteria evaluation technique effectively and realize that vendor selection results are altered based on the predefined proportions of qualification and price weights.
Journal of Enterprise Information Management – Emerald Publishing
Published: Feb 4, 2014
Keywords: IT outsourcing; Outsourcing vendor; Price assessment; Qualification assessment; Vendor selection; Weighted criteria
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera