Organizational Learning during IT Outsourcing: Evidence from EMR Implementations

38 Pages Posted: 30 Jan 2013  

Ariel C. Avgar

University of Illinois at Urbana-Champaign, School of Labor & Employment Relations and College of Medicine

Prasanna Tambe

New York University (NYU) - Leonard N. Stern School of Business; New York University (NYU) - Department of Information, Operations, and Management Sciences

Lorin M. Hitt

University of Pennsylvania - Operations & Information Management Department

Date Written: January 29, 2013

Abstract

This paper examines factors affecting organizational learning rates for outsourced EMR implementations in a quasi-experimentally chosen group of New York nursing homes. We combine detailed support request data collected by the EMR vendor in charge of implementing the systems with survey responses on work practices from 962 employees in the fifteen selected nursing homes. The vendor classified the tickets into “implementation problems”, associated with errors in the software provided by the vendor, and “usage problems” caused by incorrect usage of the new systems by the nursing home employees. We find that both types of support requests declined over time at a diminishing rate. Implementation issues declined with total vendor experience, and declined anew with the vendor’s experience in each new client implementation. Client-side work practices promoting employee discretion, teamwork, skill development, and information sharing accelerated the decline in usage problems. Over the entire implementation period, a one standard deviation higher work practices measure was associated with 10% fewer tickets arising from incorrect employee usage.

Keywords: Electronic Medical Records, Healthcare IT, IT Adoption, Organizational Learning, Organizational Complements

Suggested Citation

Avgar, Ariel C. and Tambe, Prasanna and Hitt, Lorin M., Organizational Learning during IT Outsourcing: Evidence from EMR Implementations (January 29, 2013). Available at SSRN: https://ssrn.com/abstract=2208580 or http://dx.doi.org/10.2139/ssrn.2208580

Ariel C. Avgar (Contact Author)

University of Illinois at Urbana-Champaign, School of Labor & Employment Relations and College of Medicine

504 East Armory Avenue
Champaign, IL 61820-6297
United States

Prasanna Tambe

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
New York, NY NY 10012
United States

New York University (NYU) - Department of Information, Operations, and Management Sciences ( email )

44 West Fourth Street
New York, NY 10012
United States

Lorin M. Hitt

University of Pennsylvania - Operations & Information Management Department ( email )

571 Jon M. Huntsman Hall
Philadelphia, PA 19104
United States
215-898-7730 (Phone)
215-898-3664 (Fax)

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