Professional Documents
Culture Documents
Prasanna Karhade
Research
1) Journal Papers
a) Contractual Provisions to Mitigate Holdup: Evidence from Information
Technology Outsourcing
b) Patterns in Information Systems Portfolio Prioritization: Evidence from
Decision Tree Induction
2) Selected Conference Papers
a) Information Technology And Innovation Outputs: The Missing Link of
Search Evolution
b) Dynamic Adjustment Of Information Technology, Corporate Governance,
And Firm Profitability
c) The Penrose Effect In Resource Investment For Innovation: Evidence
From Information Technology And Human Capital
Journal Papers
a) Contractual Provisions to Mitigate Holdup: Evidence from Information
Technology Outsourcing:
Information Systems Research:
Abstract: The complexity and scope of outsourced information technology (IT) demands relationship-specific
investments from vendors, which, when combined with contract incompleteness, may result in underinvestment
and inefficient bargaining, referred to as the holdup problem. Using a unique data set of over 100 IT outsourcing
contracts, we examine whether contract extensiveness, i.e., the extent to which firms and vendors can foresee
contingencies when designing contracts for outsourced IT services, can alleviate holdup. While extensively
detailed contracts are likely to include a greater breadth of activities outsourced to a vendor, task complexity
makes it difficult to draft extensive contracts. Furthermore, extensive contracts may still be incomplete with
respect to enforcement. We then examine the role of nonprice contractual provisions, contract duration, and
extendibility terms, which give firms an option to extend the contract to limit the likelihood of holdup. We also
validate the ex post efficiency of contract design choices by examining renewals of contracting agreements.
Keywords: contract duration, extendibility clauses, holdup, underinvestment, information technology outsourcing, incomplete contracts
Cite: Susarla, A., Subramanyam, R., & Karhade, P. (2010). Contractual provisions to mitigate holdup: Evidence from information technology
outsourcing. Information Systems Research, 21(1), 37-55.
Journal Papers
b) Patterns in Information Systems Portfolio Prioritization: Evidence from Decision
Tree Induction:
MIS Quarterly:
Abstract: Questions pertaining to the locus of information systems (IS) governance have been extensively
examined in existing research. However, questions pertaining to the decision rationale applied for Information
Systems portfolio prioritizationwhy are certain initiatives approved, and why are certain others rejected
noted to be a critical component of IS governance need further investigation. We submit that the Information
Systems strategy of a firm is likely to explain the decision rationale it applies to Information Systems portfolio
prioritization and maintain that it is critical to ensure this decision rationale is in congruence with the firms
Information Systems strategy. By extending prior theoretical work on Information Systems strategy types, we
develop theoretical profiles of the decision rationale applied to Information Systems portfolio prioritization using
three attributes: communicability of decision rationale, consistency in applying decision rationale, and risk
appropriateness of decision rationale. Since the decision rationale applied for Information Systems portfolio
prioritization is often tacit, unknown even to the decision makers themselves, we employ the decision tree
induction methodology to discover this tacit decision rationale. We analyze over 150 Information Systems
portfolio prioritization decisions on a multimillion dollar Information Systems portfolio of a multibusiness, Fortune
50 firm and our findings, which support our propositions, indicate that firms that adopt different Information
Systems strategies rely on systematically different profiles of decision rationale for Information Systems portfolio
prioritization. Implications for IS governance practices are developed.
Keywords: Information Systems strategy, Information Systems portfolio prioritization, IT portfolio management, IS governance, IT governance, decision making,
decision tree induction
Cite: Karhade, P., Shaw, M. J., & Subramanyam, R. (2015). Patterns in Information Systems Portfolio Prioritization: Evidence from Decision Tree Induction. MIS
Quarterly, 39(2).
Recent Service
Field
WITS 2015, Program Committee Member
CIST 2015, Program Committee Member
ICIS 2015, AE IS Strategy Track
ICIS 2014, AE IS Governance Track
University
HKUST Business School Outreach in India for the HKUST Business School PhD Program.
Dr. Prasanna Karhade (along with Prof. Anirban Mukhopadhyay) visited 9 schools in India and talked
to hundreds of the eager young minds of India about pursuing a career in academia.