Analyzing the impact of a firm's capability on outsourcing success: A process perspective

We investigated the effect of a firm's resource capabilities and interaction processes on the success of IT outsourcing. Grounded in available literature on outsourcing relationship and process theory as well as a resource-based view of the IT resource capability, a conceptual model was compose...

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Bibliographic Details
Published inInformation & management Vol. 45; no. 1; pp. 31 - 42
Main Authors Han, Hyun-Soo, Lee, Jae-Nam, Seo, Yun-Weon
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 2008
Elsevier Science
Elsevier Sequoia S.A
Subjects
Applied sciences
Computer science; control theory; systems
Discriminant analysis
Exact sciences and technology
Firm modelling
Firm's IT capabilities
Impact analysis
Information systems. Data bases
Information technology
Interaction process
IT outsourcing
Memory organisation. Data processing
Operational research and scientific management
Operational research. Management science
Outsourcing
Outsourcing success
Relationship intensity
Social exchange theory
Software
Studies
Asia
Korea
South Korea
Firm's IT capabilities
Relationship intensity
Interaction process
Outsourcing success
IT outsourcing
Factor analysis
Empirical method
Subcontracting
Conceptual analysis
Information technology
Business model
Outsourcing
Causality
Resource management
Firm strategy
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Summary:We investigated the effect of a firm's resource capabilities and interaction processes on the success of IT outsourcing. Grounded in available literature on outsourcing relationship and process theory as well as a resource-based view of the IT resource capability, a conceptual model was composed to examine the causal structure of capability, process, and relationship in IT outsourcing. We identified the firm's resource capability factors and, based on the premise that relationship intensity should be affected by the IT outsourcing process, we developed a first-order factor analysis of resource capabilities in the interactions between the outsourcer and provider. Results of empirical testing using responses from 267 IT outsourcing project teams in Korea supported most of our hypotheses. The integration of corporate IT resource and capability theories with social exchange theory distinguishes our research from that of others, who have generally treated these theories separately.
ISSN:0378-7206
1872-7530
DOI:10.1016/j.im.2007.09.004