Information Systems (IS) researchers often rely on Organization Econom
ics models to describe and explain various IS management issues. While
those models are found to be useful, measures are yet to be proposed
to assess the dimensions of IS transactions. In this paper we present
the results of a study that was a first effort toward this end. The fo
cus of the study was on one type of transaction, IS operations, in a p
articular management context, that of outsourcing. Measures Here devel
oped for four critical dimensions of IS operation transactions: asset
specificity, measurement problem, origin of the most important investm
ent, and governance mechanism. Data from 250 large Canadian firms were
used to assess the measures, using the partial least squares techniqu
e. Copyright (C) 1996 Elsevier Science Ltd.