Facilitating relational governance through service level agreements in IT outsourcing: An application of the commitment-trust theory

Decision Support Systems

Volumn 46, Issue 1, 2008, Pages 216-232

  Goo, Jahyun ^a   Huang, C Derrick ^a  

^a FLORIDA ATLANTIC UNIVERSITY   (United States)

Author keywords

IT; Outsourcing management; Relational governance; SLAs; Trust commitment theory

Indexed keywords

MANAGEMENT;

IT; OUTSOURCING MANAGEMENT; RELATIONAL GOVERNANCE; SLAS; TRUST-COMMITMENT THEORY;

OUTSOURCING;

EID: 56049125260     PISSN: 01679236     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.dss.2008.06.005     Document Type: Article

References (103)

1. Anderson E., and Weitz B. Determinants of continuity in conventional industrial channel dyads. Marketing Science 8 4 (1989) 310-323
2. Anderson E., and Weitz B. The use of pledges to build and sustain commitment in distributional channels. Journal of Marketing Research 29 1 (1992) 18-34
3. Anderson J.C., and Narus J.A. A model of distributor's perspective of distributor-manufacturer working relationships. Journal of Marketing 48 3 (1984) 62-74
4. Anderson J.C., and Narus J.A. A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing 54 1 (1990) 42-58
5. Ang S., and Slaughter S.A. Work outcomes and job design for contract versus permanent information systems professionals on software development teams. MIS Quarterly 25 3 (2001) 321
6. B.A. Aubert, S. Dussault, M. Patry, and S. Rivard, Managing the Risk of IT Outsourcing, in: Eds.), Proceedings of the 32nd Hawaii International Conference on System Sciences, (Maui, Hawaii, 1999.
7. Baker G., Gibbons R., and Murphy K.J. Subjective performance measures in optimal incentive contracts. The Quarterly Journal of Economics 109 4 (1994) 1125-1156
8. Bandyopadhyay S., and Pathak P. Knowledge sharing and cooperation in outsourcing projects - a game theoretic analysis. Decision Support Systems 43 2 (2007) 349-358
9. Bendor-Samuel P. Crafting a Better Outsourcing Contract. White Paper (1999), Everest Group, Inc.
10. Bernheim B.D., and Whinston M.D. Incomplete contracts and strategic ambiguity. The American Economic Review 88 4 (1998) 902-932
11. Chin W.W. Issues and opinion on structural equation modeling. MIS Quarterly 22 1 (1998) vii-xvi
12. Chin W.W. The partial least squares approach to structural equation modeling. In: Marcoulides G.A. (Ed). Modern Methods for Business Research (1998), Lawrence Erlbaum Associates, Mahwah, NJ 295-336
13. Choudhury V., and Sabherwal R. Portfolios of control in outsourced software development project. Information Systems Research 14 3 (2003) 291-341
14. Corsten D., and Kumar N. Do suppliers benefit from collaborative relationships with large retailers? An empirical investigation of efficient consumer response adoption. Journal of Marketing 69 3 (2005) 80
15. Corts K.S., and Singh J. The effect of repeated interaction on contract choice: evidence from offshore drilling. Journal of Law Economics & Organization 20 1 (2004) 230-260
16. Datz T. Merrill Lynch's Billion Dollar Bet, CIO, September 15, 2003 (2003)
17. Deutsch M. The Resolution of Conflict: Constructive and Destructive Processes (1973), Yale University Press, New Haven
18. DiRomualdo A., and Gurbaxani V. Strategic intent for IT outsourcing. Sloan Management Review 39 4 (1998) 67-80
19. Dwyer F.R., Schurr P.H., and Oh S. Developing buyer-seller relationships. Journal of Marketing 51 2 (1987) 11-27
20. G. Fitzgerald and L. Willcocks, Contracts and Partnerships in the Outsourcing of Is, in: Eds.), Proceedings of the Fifteenth International Conference on Information Systems, (1994), 91-98.
21. Fontenot R.J., and Wilson E.J. Relational exchange: a review of selected models for a prediction matrix of relationship activities. Journal of Business Research 39 1 (1997) 5-12
22. Frazier G.L., and Rody R.C. The use of influence strategies in interfirm relationships in industrial product channels. Journal of Marketing 55 1 (1991) 52-69
23. Galaskiewicz J., and Shatin D. Leadership and networking among neighborhood human service organizations. Administrative Science Quarterly 26 (1985) 434-448
24. Ganesan S. Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing 58 2 (1994) 1-19
25. Gefen D., Pavlou P., Benbasat I., McKnight H., Stewart K., and Straub D.W. Icis panel summary: should institutional trust matter in information systems research?. Communications of the Association for Information Systems 17 (2006) 205-222
26. Ghoshal S., and Moran P. Bad for practice: a critique of the transaction cost theory. Academy of Management Review 21 1 (1996) 13-47
27. Goles T., and Chin W.W. Relational exchange theory and is outsourcing: developing a scale to measure relationship factors. In: Hirschheim R., Heinzl A., and Dibbern J. (Eds). Information Systems Outsourcing in the New Economy (2002), Springer-Verlag, Berlin
28. J. Goo, Structure of Service Level Agreements (SLA) in IT Outsourcing: The Construct and Its Measurement, Information Systems Frontiers, (in press).
29. Goo J., Kishore R., Nam K., Rao H.R., and Song Y. An investigation of factors that influence the duration of IT outsourcing relationships. Decision Support Systems 42 4 (2007) 2107-2125
30. Goo J., Kishore R., and Rao H.R. Management of information technology outsourcing relationships: the role of service level agreements. In: Kirsch L., Agarwal R., and DeGross J.I. (Eds). Proceedings of the Twenty-Fifth International Conference on Information Systems (ICIS) (2004) 325-338 Washington DC
31. Goolsby K. Growing Beyond Illusions: Guidelines for Changing and Improving Outsourcing Relationships. White Paper, Outsourcing Center (2002)
32. Gottfredson M., Puryear R., and Phillips S. Strategic sourcing: from periphery to the core. Harvard Business Review 83 2 (2005) 132-140
33. Granovetter M. Economic action and social structure. American Journal of Sociology 91 (1985)
34. Grover V., Cheon M.J., and Teng J.T.C. The effect of service quality and partnership on the outsourcing of information systems functions. Journal of Management Information Systems 12 4 (1996) 89-116
35. Gulati R. Does familiarity breed trust? The implications of repeated ties for contractual choices in alliances. Academy of Management Journal 38 1 (1995) 85-112
36. Gulati R., Lawrence P.R., and Puranam P. Adaptation in vertical relationships: beyond incentive conflict. Strategic Management Journal 26 5 (2005) 415-440
37. Gulati R., and Singh H. The architecture of cooperation: managing coordination costs and appropriation concerns in strategic alliances. Administrative Science Quarterly 43 4 (1998) 781-809
38. Gundlach G.T., Achrol R.S., and Mentzer J.T. The structure of commitment in exchange. Journal of Marketing 59 1 (1995) 78-93
39. Hausman J.A. Specification tests in econometrics. Econometrica 46 6 (1978) 1251-1271
40. Heide J.B., and John G. Do norms matter in marketing relationships?. Journal of Marketing 56 2 (1992) 32-45
41. Heide J.B., and Miner A.S. The shadow of the future: effects of anticipated interaction and frequency of contact on buyer-seller cooperation. Academy of Management Journal 35 2 (1992) 265-291
42. Ho T.-H., and Weigelt K. Trust building among strangers. Management Science 51 4 (2005) 519-530
43. Hwang Y., and Kim D.J. Customer self-service systems: the effects of perceived web quality with service contents on enjoyment, anxiety, and E-trust. Decision Support Systems 43 3 (2007) 746-760
44. Hwang Y., and Kim D.J. Understanding affective commitment, collectivist culture, and social influence in relation to knowledge sharing in technology mediated learning. IEEE Transactions on Professional Communication 50 3 (2007) 232-248
45. Itami H. Mobilizing Invisible Assets (1987), Harvard University Press, Cambridge, MA
46. Jap S.D., and Ganesan S. Control mechanisms and the relationship life cycle: implications for safeguarding specific investments and developing commitment. Journal of Marketing Research 37 2 (2000) 227-245
47. Karten N. With service level agreements, less is more. Information Systems Management 21 4 (2004) 43-44
48. T. Kern, The Gestalt of an Information Technology Outsourcing Relationship: An Exploratory Analysis, in: Eds.), Proceedings of the Proceedings of the Eighteenth International Conference on Information Systems, (Atlanta, Georgia, 1997), 37-58.
49. Kern T., and Willcocks L. Exploring relationships in information technology outsourcing: the interaction approach. European Journal of Information Systems 11 1 (2002) 3-19
50. Kern T., Willcocks L.P., and Heck E.v. The winner's curse in IT outsourcing: strategies for avoiding relational trauma. California Management Review 44 2 (2002) 47-69
51. Kishore R., Agrawal M., and Rao H.R. Determinants of sourcing during technology growth and maturity: an empirical study of E-commerce sourcing. Journal of Management Information Systems 21 3 (2004-5) 47-82
52. Kishore R., Rao H.R., Nam K., Rajagopalan S., and Chaudhury A. A relationship perspective on IT outsourcing. Communications of the ACM 46 12 (2003) 86-92
53. Klein B. Why hold-ups occur: the self-enforcing range of contractual relationships. Economic Inquiry 34 3 (1996) 444-463
54. Koh C., Ang S., and Straub D.W. IT outsourcing success: a psychological contract perspective. Information Systems Research 15 4 (2004) 356-373
55. C. Koh, C. Tay, S. Ang, Managing Vendor-Client Expectations in IT Outsourcing: A Psychological Contract Perspective, in: Eds.), Proceedings of the Proceedings of the Twenties International Conference on Information Systems (ICIS), (Charlotte, North Carolina, 1999.
56. Kumar N., Scheer L.K., and Steenkamp J.-B.E.M. The effects of perceived interdependence on dealer attitudes. Journal of Marketing Research 32 3 (1995) 348-356
57. Kumar N., Stern L.W., and Achrol R.S. Assessing reseller performance from the perspective of the supplier. Journal of Marketing Research 29 2 (1992) 238-254
58. Kumar N., Stern L.N., and Anderson J.C. Conducting interorganizational research using key informants. Academy of Management Journal 36 6 (1993) 1633-1651
59. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R.W. Trust in large organizations. The American Economic Review 87 2 (1997) 333-338
60. Lambe C.J., Spekman R., and Hunt S.D. Interimistic relational exchange: conceptualization and propositional development. Journal of the Academy of Marketing Science 28 2 (2000) 212-225
61. Lee J.-N. The impact of knowledge sharing, organizational capability and partnership quality on is outsourcing success. Information & Management 38 5 (2001) 323-335
62. Lee J.-N., and Kim Y.-G. Effect of partnership quality on is outsourcing: conceptual framework and empirical validation. Journal of Management Information Systems 15 4 (1999) 29-61
63. Lee J.-N., Miranda S.M., and Kim Y.-M. IT outsourcing strategies: universalistic, contingency, and configurational explanations of success. Information Systems Research 15 2 (2004) 110-131
64. Macaulay S. Non-contractual relations in business: a preliminary study. American Sociological Review 28 (1963) 55-67
65. Macneil I.R. The New Social Contract, an Inquiry into Modern Contractual Relations (1980), Yale University Press, New Heaven
66. Mani D., Barua A., and Whinston A.B. Successfully governing business process outsourcing relationships. MIS Quarterly Executive 5 1 (2006) 15-29
67. Mayer K.J., and Argyres N.S. Learning to contract: evidence from the personal computer industry. Organization Science 15 4 (2004) 394-410
68. McEvily B., Perrone V., and Zaheer A. Trust as an organizing principle. Organization Science 14 1 (2003) 91-105
69. McKnight D.H., Cummings L.L., and Chervany N.L. Initial trust formation in new organizational relationships. Academy of Management Review 23 3 (1998) 473-490
70. Meyer J.P., and Allen N.J. Testing the "side-bet Theory'' theory" of organizational commitment: some methodological considerations. Journal of Applied Psychology 69 3 (1984) 372-378
71. Meyerson D., Weick K.E., and Kramer R.M. Swift trust and temporary groups. In: Kramer R.M., and Tyler T.R. (Eds). Trust in Organizations: Frontiers of Theory and Research (1996), Sage, Thousand Oaks, CA 166-195
72. Mingay S., and Govekar M. ITIL's Service-Level Management Strength Is in Integration, TG-15-3491 (2002), Gartner Group
73. Mohr J., and Nevin J.R. Communication strategies in marketing channels: a theoretical perspective. Journal of Marketing 54 4 (1990) 36-51
74. Morgan R.M., and Hunt S.D. The commitment-trust theory of relationship marketing. Journal of Marketing 58 3 (1994) 20-39
75. Neumann J.v., and Morgenstern O. Theory of Games and Economic Behavior (1944), Princeton University Press
76. Pavlou P.A., and Gefen D. Building effective online marketplaces with institution-based trust. Information Systems Research 15 1 (2004) 37-59
77. Podsakoff P.M., MacKenzie S.B., Lee J.-Y., and Podsakoff N.P. Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology 88 5 (2003) 879-903
78. Poppo L., and Zenger T. Do formal contracts and relational governance function as substitutes or complements?. Strategic Management Journal 23 8 (2002) 707-725
79. Ring P., and Van de Ven A. Developmental processes of cooperative interorganizational relationships. Academy of Management Review 19 1 (1994) 90-118
80. Ring P.S., and Van de Ven A.H. Structuring cooperative relationships between organizations. Strategic Management Journal 13 (1992) 483-498
81. Robey D., Farrow D.L., and Franz C.R. Group process and conflict in system development. Management Science 35 10 (1989) 1172-1191
82. Rottman J.W., and Lacity M.C. Twenty practices for offshore sourcing. MIS Quarterly Executive 3 3 (2004) 117-130
83. Sabherwal R. The role of trust in outsourced is development projects. Communications of the ACM 42 2 (1999) 80-86
84. Saunders C., Gebelt M., and Hu Q. Achieving success in information systems outsourcing. California Management Review 39 2 (1997) 63-79
85. Scardino L. IT Services Contracts - Demand Management Plan, COM-14-3264 (2001), Gartner Group
86. Shao B.B., and David J.S. The Impact of Offshore Outsourcing on IT Workers in Developed Countries. Communications of the ACM vol. 50(2) (2007), Association for Computing Machinery 89-94
87. Shapiro S.P. The social control of impersonal trust. American Journal of Sociology 93 3 (1987) 623-658
88. Singleton J.P., McLean E.R., and Altman E.N. Measuring information systems performance: experience with the management by results system at Security Pacific Bank. MIS Quarterly 12 2 (1988) 325-337
89. Sitkin S.B., and Pablo A.L. Reconceptualizing the determinants of risk behavior. Academy of Management Review 17 (1992) 9-38
90. E.M. Snir, Economics of Information Technology Outsourcing and Markets, Doctoral Dissertation, The Wharton School, University of Pennsylvania, 2000.
91. Stone L. Beyond T&Cs: What Must Be Included in Services Contracts, AV-14-3036 (2001), Gartner Group
92. Susarla A., Barua A., and Whinston A.B. Understanding the service component of application service provision: an empirical analysis of satisfaction with ASP services. MIS Quarterly 27 1 (2003) 91-123
93. Uzzi B. The sources and consequences of embeddedness for the economic performance of organizations: the network effect. American Sociological Review 61 (1996) 674-698
94. Uzzi B. Social structure and competition in interfirm networks: the paradox of embeddedness. Administrative Science Quarterly 42 1 (1997) 35-67
95. Vaast E., and Levina N. Multiple faces of codification: organizational redesign in an IT organization. Organization Science 17 2 (2006) 190-201
96. Venkatraman N. Strategic orientation of business enterprises: the construct, dimensionality, and measurement. Management Science 35 8 (1989) 942-962
97. Whittena D., and Wakefield R.L. Measuring switching costs in IT outsourcing services. Journal of Strategic Information Systems 15 3 (2006) 219-248
98. Willcocks L.P., and Kern T. IT outsourcing as strategic partnering: the case of the UK inland revenue. European Journal of Information Systems 7 1 (1998) 29-46
99. Wilson D.T. An integrated model of buyer-seller relationships. Journal of the Academy of Marketing Science 23 4 (1995) 335-345
100. Wold H. Soft modeling: intermediate between traditional model building and data analysis. Mathematical Statistics 6 (1982) 333-346
101. Zaheer A., McEvily B., and Perrone V. Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science 9 2 (1998) 141-160
102. Zaheer A., and Venkatraman N. Relational governance as an interorganizational strategy: an empirical test of the role of trust in economic exchange. Strategic Management Journal 16 5 (1995) 373-392
103. Zucker L.G. Production of trust: institutional sources of economic structure, 1840-1920. In: Staw B.M., and Cummings L.L. (Eds). Research in Organizational Behavior (1986), JAI, Greenwich, Conn 53-111