Abstract
Outsourcing is now a commonly accepted means of meeting organizational IS needs. One facet of recent outsourcing research has begun to concentrate on the relationship between customers and their service providers. However, this line of research is hampered by a lack of consistent conceptual focus, and a corresponding inconsistent treatment of constructs associated with the relationship. This paper uses Relational Exchange Theory as a conceptual basis for identifying the individual constructs that comprise a relationship. It then develops and tests a set of items to measure those constructs, using structural equation modeling and survey data collected from U.S. outsourcing customers.
- Amason, A. (1996). "Distinguishing the Effects of Functional and Dysfunctional Conflict on Strategic Decision Making: Resolving a Paradox for Top Management Teams," Academy of Management Journal, Vol.39, No.1, pp. 123--148.]]Google ScholarCross Ref
- Anderson, J. and Narus, J. (1984). "A Model of the Distributor's Perspective of Distributor-Manufacturer Working Relationships," Journal of Marketing, Vol.48, No.4, pp. 62--74.]]Google ScholarCross Ref
- Anderson, J. and Narus, J. (1990). "A Model of Distributor Firm and Manufacturer Firm Working Partnerships," Journal of Marketing, Vol.54, No.1, pp. 42--58.]]Google ScholarCross Ref
- Anderson, E. and Weitz, B. (1989). "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, Vol.8, No.4, pp. 310--323.]]Google ScholarDigital Library
- Anderson, E. and Weitz, B. (1992). "The Use of Pledges to Build and Sustain Commitment in Distribution Channels," Journal of Marketing Research, Vol.29, No.1, pp. 18--34.]]Google ScholarCross Ref
- Arndt, J. (1979). "Toward a Concept of Domesticated Markets," Journal of Marketing, Vol.43, pp. 69--75.]]Google ScholarCross Ref
- Bagozzi, R. and Yi, Y. (1988). "On the Evaluation of Structural Equation Models," Journal of the Academy of Marketing Science, Vol.16, pp. 74--94.]]Google ScholarCross Ref
- Baskerville, R. and Myers, M. (2002). "Information Systems as a Reference Discipline," MIS Quarterly, Vol.26, No.1, pp. 1--14.]]Google ScholarDigital Library
- Beale, H. and Dugdale, T. (1975). "Contracts between Businessmen: Planning and the Use of Contractual Remedies," British Journal of Law and Society, Vol.2, pp. 45--60.]]Google ScholarCross Ref
- Bennett, C. and Timbrell, G. (2000). "Application Service Providers: Will They Succeed?," Information Systems Frontiers, Vol.2, No.2, pp. 195--211.]] Google ScholarDigital Library
- Brown, J., Dev, C., and Lee, D. J. (2000). "Managing Market Channel Opportunism: The Efficacy of Alternative Governance Mechanisms," Journal of Marketing, Vol.64, No.2, pp. 51--65.]]Google ScholarCross Ref
- Clark, T. D., Jr., Zmud, R. W., and McCray, G. E. (1995). "The Outsourcing of Information Services: Transforming the Nature of Business in the Information Industry," Journal of Information Technology, Vol.10, pp. 221--237.]]Google ScholarCross Ref
- Caldwell, B. and McGee, M. (1997). "Outsourcing Backlash." InformationWeek Online, Sept. 29, 1997, http://www.informationweek.com/650/50iuout.htm.]]Google Scholar
- Corbett, Michael F. & Associates, Ltd. (2002) "Outsourcing Failures?" http://www.firmbuilder.com/articles/19/48/388/ (accessed April 2003).]]Google Scholar
- Cross, J. (1995). "IT Outsourcing: British Petroleum's Competitive Approach," Harvard Business Review, Vol.73, No.3, pp. 94--102.]]Google Scholar
- Currie, W. L. (1998). "Using Multiple Suppliers to Mitigate the Risk of IT Outsourcing at ICI and Wessex Water," Journal of Information Technology, Vol.13, pp. 169--180.]]Google ScholarCross Ref
- DeSanctis, G. and Jackson, B. (1994). "Coordination of Information Technology Management: Team-Based Structures and Computer-Based Communication Systems," Journal of Management Information Systems, Vol.10, No.4, pp. 85--110.]] Google ScholarDigital Library
- Deshpande, R. and Webster, F. (1989). "Organizational Culture and Marketing: Defining the Research Agenda," Journal of Marketing, Vol.No.53, No.1, pp. 3--15.]]Google Scholar
- DiRomualdo, A. and Gurbaxani, V. (1998). "Strategic Intent for IT Outsourcing," Sloan Management Review, Vol.39, No.4, pp. 67--80.]]Google Scholar
- Doll, W. and Torkzadeh, G. (1988). "The Measurement of End-User Computing Satisfaction," MIS Quarterly, Vol.12, No.2, pp. 258--274.]] Google ScholarDigital Library
- Dwyer, R., Schurr, P., and Oh, S. (1987). "Developing Buyer-Seller Relationships," Journal of Marketing, Vol.51, No.2, pp. 11--27.]]Google ScholarCross Ref
- Feeny, D. and Willcocks, L. (1998). "Core IS Capabilities for Exploiting Information Technology," Sloan Management Review, Vol.39, No.3, pp. 9--21.]]Google Scholar
- Fitzgerald, G. and Willcocks, L. (1994). "Contracts and Partnerships in the Outsourcing of IT," Proceedings of the Fifteenth International Conference on Information Systems, Vancouver, British Columbia, Canada, pp. 91--98.]]Google Scholar
- Fontenot, R. and Wilson, E. (1997). "Relational Exchange: A Review of Selected Models for a Prediction Matrix of Relationship Activities," Journal of Business Research, Vol.39, No.1, pp. 5--12.]]Google ScholarCross Ref
- Gartner Dataquest. (2002). "Gartner Dataquest Says IT Services Revenue to Increase to $557 Billion in 2002,". Gartner Press Release, http://www.dataquest.com/press_gartner/quickstats/outsourcing.html (accessed August 2001).]]Google Scholar
- Goles, T. (2001). The Impact of the Client/Vendor Relationship on Outsourcing Success, unpublished dissertation, University of Houston, Houston, TX.]]Google Scholar
- Goodridge, E. (2001). "Outsourcing Makes Work for Lawyers," TechWeb, http://www.techweb.com/wire/story/TWB20010102S0004 (accessed August 2001).]]Google Scholar
- Grover, V., Cheon, M. J., and Teng, J. T. C. (1996). "The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions," Journal of Management Information Systems, Vol.12, No.4, pp. 89--116.]] Google ScholarDigital Library
- Gundlach, G. and Cadotte, E. (1994). "Exchange Interdependence and Interfirm Interaction: Research in a Simulated Channel Setting," Journal of Marketing Research, Vol.31, No.4, pp. 516--532.]]Google ScholarCross Ref
- Gundlach, M. and Murphy, P. (1993). "Ethical and Legal Foundations of Relational Marketing Exchanges," Journal of Marketing, Vol.57, No.4, pp. 35--46.]]Google ScholarCross Ref
- Hancox, M. and Hackney, R. (1999). "Information Technology Outsourcing: Conceptualizing Practice in the Public and Private Sector," Proceedings of the 32nd Annual Hawaii International Conference on System Sciences, Hawaii, Track 7.]] Google ScholarDigital Library
- Hart, P. and Saunders, C. (1997). "Power and Trust: Critical Factors in the Adoption and Use of Electronic Data Interchange," Organization Science, Vol.8, No.1, pp. 23--42.]]Google ScholarDigital Library
- Heide, J. (1994). "Interorganizational Governance in Marketing Channels," Journal of Marketing, Vol.58, No.1, pp. 71--84.]]Google ScholarCross Ref
- Heide, J. and John, G. (1992). "Do Norms Matter in Marketing Relationships?," Journal of Marketing, Vol.56, No.2, pp. 32--44.]]Google ScholarCross Ref
- Henderson, J. (1990). "Plugging into Strategic Partnerships: The Critical IS Connection," Sloan Management Review, Vol.31, No.3, pp. 7--18.]]Google Scholar
- Huber, R. (1993). "How Continental Bank Outsourced Its 'Crown Jewels'," Harvard Business Review, Vol.71, No.1., pp. 121--129.]]Google Scholar
- Johnson, W. J. and Bonoma, T. V. (1977). "Reconceptualizing Industrial Buying Behavior: Toward Improved Research Approaches," in Greenberg, B. A., and Bellenger, D. N. (Eds.), Contemporary Marketing Thought, Chicago: American Marketing Association, pp. 247--251.]]Google Scholar
- Kanter, R. M. (1994). "Collaborative Advantage: The Art of Alliances," Harvard Business Review, Vol.72, No.4, pp. 96--108.]]Google Scholar
- Kern, T. (1997). "The Gestalt of an Information Technology Outsourcing Relationship: An Exploratory Analysis," Proceedings of the Eighteenth International Conference on Information Systems, Atlanta, Georgia, pp. 37--58.]] Google ScholarDigital Library
- Kern, T. and Willcocks, L. (2000). "Exploring Information Technology Outsourcing Relationships: the Interaction Approach," European Journal of Information Systems, Vol.9, pp. 321--350.]]Google Scholar
- Kern, T. and Willcocks, L. (2002). "Exploring Information Technology Outsourcing Relationships: Theory and Practice," Journal of Strategic Information Systems, Vol.11, pp. 3--19.]]Google Scholar
- Klepper, R. (1995). "The Management of Partnering Development in I/S Outsourcing," Journal of Information Technology, Vol.10, pp. 249--258.]]Google ScholarCross Ref
- Klepper, R. and Jones, W. (1998). Outsourcing Information Technology, Systems, and Services, Upper Saddle River, NJ: Prentice Hall.]] Google ScholarDigital Library
- Kumar, K. and van Dissel, H. (1996). "Sustainable Collaboration: Managing Conflict and Cooperation in Interorganizational Systems," MIS Quarterly, Vol.20, No.3, pp. 279--300.]] Google ScholarDigital Library
- Lacity, M. and Hirschheim, R. (1993). "The Information Systems Outsourcing Bandwagon," Sloan Management Review, Vol.35, No.1, pp. 73--86.]]Google Scholar
- Lacity, M. and Willcocks, L. (1998). "An Empirical Investigation of Information Technology Sourcing Practices: Lessons From Experience," MIS Quarterly, Vol.22, No.3, pp. 363--408.]] Google ScholarDigital Library
- Lacity, M. and Willcocks, L. (2000). "Relationships in IT Outsourcing: A Stakeholder Perspective," in Zmud, R. W. (Ed.), Framing the Domain of IT Management, Cincinnati: Pinnaflex, pp. 355--384.]]Google Scholar
- Lacity, M., Willcocks, L., and Feeny, D. (1995). "IT Outsourcing: Maximize Flexibility and Control," Harvard Business Review, Vol.73, No.3, pp. 85--93.]]Google Scholar
- Lambe, C. J., Spekman, R. E., and Hunt, S. D. (2000). "Interimistic Relational Exchange: Conceptualization and Propositional Development," Journal of the Academy of Marketing Science, Vol.28, No.2, pp. 212--225.]]Google ScholarCross Ref
- Lasher, D., Ives, B., and Jarvenpaa, S. (1991). "USAA-IBM Partnerships in Information Technology: Managing the Image Project," MIS Quarterly, Vol.15, No.4, pp. 551--566.]]Google ScholarDigital Library
- Lee, J. N., Huynh, M. Q., Chi-Wai, K. R., and Pi, S. M. (2000). "The Evolution of Outsourcing Research: What is the Next Issue?" Proceedings of the Thirty-Third Hawaii International Conference on System Sciences, Hawaii, Vol.2.]] Google ScholarDigital Library
- Lee, D. and Jang, J. (1998). "The Role of Relational Exchange between Exporters and Importers: Evidence from Small and Medium-Sized Australian Exporters," Journal of Small Business Management, Vol.36, No.4, pp. 12--23.]]Google Scholar
- Lee, J.-N. and Kim, Y.-G. (1999). "Effect of Partnership Quality on IS Outsourcing Success: Conceptual Framework and Empirical Validation," Journal of Management Information Systems, Vol.15, No.4, pp. 29--61.]] Google ScholarDigital Library
- Loh, L. and Venkatraman, N. (1992). "Determinants of Information Technology Outsourcing: A Cross-Sectional Analysis," Journal of Management Information Systems, Vol.9, No.1, pp. 7--24.]] Google ScholarDigital Library
- Macaulay, S. (1963). "Non-Contractual Relations in Business: A Preliminary Study," American Sociological Review, Vol.28, pp. 55--67.]]Google ScholarCross Ref
- Macneil, I. R. (1974). "The Many Futures of Contracts," Southern California Law Review, Vol.47, pp. 691--816.]]Google Scholar
- Macneil, I. R. (1978). "Contracts: Adjustment of Long-Term Economic Relations Under Classical, Neoclassical, and Relational Contract Law," Northwestern University Law Review, Vol.72, pp. 854--905.]]Google Scholar
- Macneil, I. R. (1980). The New Social Contract: An Inquiry into Modern Contractual Relations, New London: Yale University Press.]]Google Scholar
- Macneil, I. R. (2000). "Relational Contract Theory: Challenges and Queries," Northwestern University Law Review, Vol.94, No.3, pp. 877--907.]]Google Scholar
- Maitland, I., Bryson, J., and Van de Ven, A. (1985). "Sociologists, Economists, and Opportunism." Academy of Management Review, Vol.10, No.1, pp. 59--65.]]Google ScholarCross Ref
- Malone, T. and Crowston, K. (1994). "The Interdisciplinary Study of Coordination," ACM Computing Surveys, Vol.26, No.1, pp. 87--119.]] Google ScholarDigital Library
- McKeen, J. and Smith, H. (2001). "Managing External Relationships in IS," Proceedings of the 34th Annual Hawaii International Conference on System Sciences (HICSS-34), Hawaii, p. 8075.]] Google ScholarDigital Library
- Mejias, R., Shepard, M., Vogel, D., and Lazaneo, L. (1996). "Consensus and Perceived Satisfaction Levels: A Cross-cultural Comparison of GSS and non-GSS Outcomes within and between the United States and Mexico," Journal of Management Information Systems, Vol.13, No.3, pp. 137--161.]] Google ScholarDigital Library
- Michell, V. and Fitzgerald, G. (1997). "The IT Outsourcing Market-Place: Vendors and their Selection," Journal of Information Technology, Vol.12, pp. 223--237.]]Google ScholarCross Ref
- Mohr, J. and Spekman, R. (1994). "Characteristics of Partnership Success: Partnership Attributes, Communication Behavior, and Conflict Resolution Techniques," Strategic Management Journal, Vol.15, No.2, pp. 135--152.]]Google ScholarCross Ref
- Monczka, R., Petersen, K., Handfield, R., and Ragatz, G. (1998). "Success Factors in Strategic Supplier Alliances: The Buying Company Perspective," Decision Sciences, Vol.29, No.3, pp. 553--577.]]Google ScholarCross Ref
- Morgan, R. M. and Hunt, S. D. (1994). "The Commitment-Trust Theory of Relationship Marketing," Journal of Marketing, Vol.59, No.3, pp. 20--38.]]Google ScholarCross Ref
- Nam, K., Rajagopalan, S., Rao, H., and Chaudhury, A. (1996). "A Two-Level Investigation of Information Systems Outsourcing," Communications of the ACM, Vol.39, No.7, pp. 36--44.]] Google ScholarDigital Library
- Narus, J. and Anderson, J. (1987). "Distribution Contributions to Partnerships with Manufacturers," Business Horizons, Vol.30, pp. 34--42.]]Google ScholarCross Ref
- Nevin, J. (1995). "Relationship Marketing and Distribution Channels: Exploring Fundamental Issues," Journal of the Academy of Marketing Science, Vol.23, No.4, pp. 327--334.]]Google ScholarCross Ref
- Noordewier, T. G., John, G., and Nevin, J. R. (1990). "Performance Outcomes of Purchasing Arrangements in Industrial Buyer-Vendor Relationships." Journal of Marketing, Vol.54, No.4, pp. 80--93.]]Google ScholarCross Ref
- Oliver, C. (1990). "Determinants of Interorganizational Relationships: Integration and Future Directions," Academy of Management Review, Vol.15, No.2, pp. 241--265.]]Google ScholarCross Ref
- Ouchi, W. G. (1980). "Markets, Bureaucracies, and Clans," Administrative Science Quarterly, Vol.25, pp. 129--141.]]Google ScholarCross Ref
- Pfeffer, J. and Salancik, G. (1978). The External Control of Organizations: A Resource Dependence Perspective, New York: Harper & Row.]]Google Scholar
- Pinto, M. B., Pinto, J. K., and Prescott, J. E. (1993). "Antecedents and Consequences of Project Team Cross-Functional Cooperation," Management Science, Vol.39, No.10, pp. 1281--1297.]]Google ScholarDigital Library
- Quinn, J. B. (1999). "Strategic Outsourcing: Leveraging Knowledge Capabilities," Sloan Management Review, Vol.40, pp. 9--21.]]Google Scholar
- Rai, A., Borah, S., and Ramaprasad, A. (1996). "Critical Success Factors for Strategic Alliances in the Information Technology Industry: an Empirical Study," Decision Sciences, Vol.27, No.1, pp. 141--155.]]Google ScholarCross Ref
- Ring, P. and Van de Ven, A. (1994). "Developmental Processes of Cooperative Interorganizational Relationships," Academy of Management Review. Vol.19, No.1, pp. 90--118.]]Google ScholarCross Ref
- Robey, D., Farrow, D., and Franz, C. (1989). "Group Process and Conflict in System Development," Management Science, Vol.35, No.10, pp. 1172--1191.]]Google ScholarDigital Library
- Rousseau, D., Sitkin, S., Burt, R., and Camerer, C. (1998). "Not So Different after All: A Cross-Discipline View of Trust," Academy of Management Review, Vol.23, No.3, pp. 393--404.]]Google ScholarCross Ref
- Sabherwal, R. (1999). "The Role of Trust in Outsourced IS Development Projects," Communications of the ACM, Vol.42, No.2, pp. 80--86.]] Google ScholarDigital Library
- Saunders, C., Gebelt, M., and Hu, Q. (1997). "Achieving Success in Information Systems Outsourcing," California Management Review, Vol.39, No.2, pp. 63--79.]]Google ScholarCross Ref
- Shepherd, A. (1999). "Outsourcing IT in a Changing World," European Management Journal, Vol.17, No.1, pp. 64--84.]]Google ScholarCross Ref
- Simons, T. (1995). "Top Management Team Consensus, Heterogeneity, and Debate as Contingent Predictors of Company Performance: the Complementarity of Group Structure and Process," Academy of Management Journal, Best Papers Proceedings, 55th Annual Meeting, Vancouver, British Columbia, Canada, pp. 62--66.]]Google Scholar
- Simpson, J. and Mayo, D. (1997). "Relationship Management: A Call for Fewer Influence Attempts," Journal of Business Research, Vol.39, No.3, pp. 209--218.]]Google ScholarCross Ref
- Spekman, R. E., Salmond, D. J., and Lambe, C. J. (1997). "Consensus and Collaboration: Norm-regulated Behaviour in Industrial Marketing Relationships," European Journal of Marketing, Vol. 31, No. 11/12, pp. 835--856.]]Google ScholarCross Ref
- Spriggs, M. T. (1996). "The New Social Contract: an Inquiry into Modern Contractual Relations," Journal of Public Policy and Marketing, Vol.15, No.1, pp. 157--159.]]Google ScholarCross Ref
- Thompson, J. D. (1967). Organizations in Action, New York: McGraw-Hill.]]Google Scholar
- Van de Ven, A. H., Delbecg, A. H., and Koenig, R. (1976). "Determinants of Coordination Modes within Organizations," American Sociological Review, Vol. 41, No. 2, pp. 322--338.]]Google ScholarCross Ref
- Weitz, B. A. and Jap, S. D. (1995). "Relationship Marketing and Distribution Channels," Journal of the Academy of Marketing Science, Vol.23, No.4, pp. 305--320.]]Google ScholarCross Ref
- Wernerfelt, B. (1984). "A Resource-Based View of the Firm," Strategic Management Journal, Vol.5, No.2, pp. 171--180.]]Google ScholarCross Ref
- Willcocks, L. P. and Choi, C. (1995). "Cooperative Partnership and 'Total' IT Outsourcing: From Contractual Obligation to Strategic Alliance?," European Management Journal, Vol.13, No.1, pp. 67--78.]]Google ScholarCross Ref
- Willcocks, L. P. and Kern, T (1998). "IT Outsourcing as Strategic Partnering: the Case of the UK Inland Revenue," European Journal of Information Systems, Vol.7, pp. 29--45.]] Google ScholarCross Ref
- Willcocks, L. and Lacity, M. (1998). Strategic Sourcing of Information Systems: Perspectives and Practices, New York: Wiley, Chichester, England.]] Google ScholarDigital Library
- Zaheer, A., McEvily, B., and Perrone, V. (1998). "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, Vol.9, No.2, pp. 141--159.]] Google ScholarDigital Library
Index Terms
- Information systems outsourcing relationship factors: detailed conceptualization and initial evidence
Recommendations
Determinants of relationship quality for IS/IT outsourcing success in public sector
Relationship has become an influential aspect for the success of IS/IT outsourcing projects. Although some studies have explored the issues of IS/IT outsourcing relationship in the past, these studies are limited to the private sectors. Whereas, studies ...
Factors Hindering IT Outsourcing Relationship in Swedish Public Organizations
IT outsourcing relationship is the relationship in the outsourcing agreement between the service provider and service receiver. The overall IT outsourcing success is directly influenced by the IT outsourcing relationship. However, not much attention has ...
IT outsourcing:: an exploratory study based on transaction cost theory, relational exchange theory and agent theory
The bandwagon effect of Kodak and IBM agreement has lead to more organizations to involve in IT outsourcing. Even though that is the case, IT outsourcing is not a panacea. Many researchers have been trying to come out with ways to effectively manage IT ...
Comments