The mediating role of psychological contract breach in IS outsourcing: Inter-firm governance perspective

European Journal of Information Systems

Volumn 22, Issue 5, 2013, Pages 529-547

  Kim, Hyung Jin ^a   Shin, Bongsik ^b   Lee, Hogeun ^c  

^a NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

^b SAN DIEGO STATE UNIVERSITY   (United States)

^c Yonsei University   (South Korea)

Author keywords

governance; IS outsourcing; legal contract; outsourcing performance; partnership psychological contract breach

Indexed keywords

MERGERS AND ACQUISITIONS;

CLIENT-VENDOR RELATIONSHIPS; GOVERNANCE; GOVERNANCE MECHANISMS; INDIVIDUAL LEVEL VARIABLES; INTER-FIRM RELATIONSHIPS; IS OUTSOURCINGS; LEGAL CONTRACTS; PSYCHOLOGICAL CONTRACTS;

OUTSOURCING;

EID: 84883200348     PISSN: 0960085X     EISSN: 14769344     Source Type: Journal    
DOI: 10.1057/ejis.2012.41     Document Type: Article

References (84)

1. AGERFALK P and FITZGERALD B (2008) Outsourcing to an unknown workforce: exploring opensourcing as a global sourcing strategy. MIS Quarterly 32(2), 385-409.
2. ANDERSON JC and NARUS JA (1990) A model of distributor firm and manufacturer firm working relationships. Journal of Marketing 54(1), 42-58.
3. ANDERSON N and SCHALK R (1998) The psychological contract in retrospect and prospect. Journal of Organizational Behavior 19(S1), 637-647.
4. AUBERT B, HOUDE J, PARTY M and RIVARD S (2003) Characteristics of IT outsourcing contracts. In Proceedings of the 36th Hawaii International Conference on Systems Sciences, IEEE Computer Society, Hawaii, U.S.A.
5. BALU PM (1964) Exchange and Power in Social Life. Wiley, New York.
6. BARTUNEK JM and MOCH MK (1987) First-order, second-order, and thirdorder change and organizational development interventions: a cognitive approach. Journal of Applied Behavioral Science 23(4), 483-500.
7. BLOOMFIELD BP and DANIELI A (1995) The role of management consultants in the development of information technology: the indissoluble nature of socio-political and technical skills. Journal of Management Studies 32(1), 23-46.
8. BRANDON G and HALVEY JK (1990) Data Processing Contracts: Structure, Contents, and Negotiation. Van Nostrand Reinhold, New York.
9. CHEN Y and BHARADWAJ A (2009) An empirical analysis of contract structures in IT outsourcing. Information Systems Research 20(4), 484-506.
10. CHEN ZX, TSUI AS and ZHONG L (2008) Reactions to psychological contract breach: a dual perspective. Journal of Organizational Behavior 29(5), 527-548.
11. CHIN WW, MARCOLIN BL and NEWSTED PR (2003) A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Information Systems Research 14(2), 189-217.
12. CHOUDHURY V and SABHERWAL R (2003) Portfolios of control in outsourced software development projects. Information Systems Research 14(3), 291-314.
13. COYLE-SHAPIRO JAM (2002) A psychological contract perspective on organizational citizenship behavior. Journal of Organizational Behavior 23(8), 927-946.
14. COYLE-SHAPIRO J and KESSLER I (2000) Consequences of the psychological contract for the employment relationship: a large scale survey. Journal of Management Studies 37(7), 903-930.
15. CRONIN JJ and TAYLOR SA (1992) Measuring service quality: a reexamination and extension. Journal of Marketing 56(3), 55-68.
16. DELONE WH and MCLEAN ER (1992) Information systems success: the quest for the dependent variable. Information Systems Research 3(1), 60-95.
17. DEY D, FAN M and ZHANG C (2010) Design and analysis of contracts for software outsourcing. Information Systems Research 21(1), 93-114.
18. DULAC T, COYLE-SHAPIRO J, HENDERSON D and WAYNE SJ (2008) Not all responses to breach are the same: the interconnection of social exchange and psychological contract processes in organizations. Academy of Management Journal 51(6), 1079-1098.
19. EMORY CW and COOPER DR (1991) Business Research Methods. Irwin, Boston, MA.
20. FITZGERALD G and WILLCOCKS L (1994) Contracts and partnerships in the outsourcing of IT. In Proceedings of the 15th International Conference on Information Systems, Association for Information Systems, Vancouver, British Columbia, Canada.
21. FREEZE R and RASCHKE RL (2007) An assessment of formative and reflective constructs in IS research. In Proceedings of the 15th European Conference on Information Systems (ECIS 2007), Association for Information Systems, St Gallen, Switzerland.
22. GEFEN D and STRAUB DW (2005) A practical guide to factorial validity using PLS-graph: tutorial and annotated example. Communications of the Association for Information Systems 16(5), 91-109.
23. GEFEN D, STRAUB DW and BOUDREAU MC (2000) Structural equation modeling and regression: guidelines for research practice. Communications of the Association for Information Systems 4(7), 2-77.
24. GOO J, KISHORE R, RAO HR and NAM K (2009) The role of service level agreements in relational management of information technology outsourcing: an empirical study. MIS Quarterly 33(1), 119-145.
25. GOPAL A and SIVARAMAKRISHNAN K (2008) On vendor preferences for contract types in offshore software projects: the case of fixed price vs. time and materials contracts. Information Systems Research 19(2), 202-220.
26. GROVER V, CHEON MJ and TENG JTC (1996) The effect of service quality and partnership on the outsourcing of information systems functions. Journal of Management Information Systems 12(4), 89-116.
27. GURBAXANI V (2005) Information systems outsourcing contracts: theory and evidence. In Managing in the Information Economy (KARMARKAR U and APTE U, Eds) Current Research, Kluwer, New York.
28. HART O (1988) Incomplete contracts and the theory of the firm. Journal of Law, Economics, and Organization 4(1), 119-139.
29. HENDERSON DJ, WAYNE SJ, BOMMER WH, SHORE LM and TETRICK LE (2008) Leader-member exchange, differentiation, and psychological contract fulfillment: a multilevel examination. Journal of Applied Psychology 93(6), 1208-1219.
30. HOLMSTRöM OLSSON H, CONCHú IR EÓ , A GERFALK P and FITZGERALD B (2008) Two-stage offshoring: an investigation of the Irish bridge. MIS Quarterly 32(2), 257-279.
31. HOYLE RH and KENNY DA (1999) Statistical power and tests of mediation. In Statistical Strategies for Small Sample Research (KENNY DA, Ed) pp 195-222, Sage, Newbury Park, CA.
32. JASPERSON J, CARTE TA, SAUNDERS CS, BUTLER BS, CROES HJP and ZHENG W (2002) Power and information technology research: a metatriangulation review. MIS Quarterly 26(4), 397-459.
33. JOHNSON N and COOPER RB (2009) Power and concession in computermediated negotiations: an examination of first offers. MIS Quarterly 33(1), 147-170.
34. KAMDAR D and DYNE LV (2007) The joint effects of personality and workplace social exchange relationships in predicting task performance and citizenship performance. Journal of Applied Psychology 92(5), 1286-1298.
35. KERN T and BLOIS K (2002) Norm development in outsourcing relationships. Journal of Information Technology 17(1), 33-42.
36. KERN T and WILLCOCKS L (2002) Exploring relationships in information technology outsourcing: the interaction approach. European Journal of Information systems 11(1), 3-19.
37. KIM HJ, LEE SH and LEE HG (2007a) An empirical study on the importance of psychological contract commitment in information systems outsourcing. In Proceedings of the 11th Pacific Asia Conference on Information Systems, Association for Information Systems, Auckland, New Zealand.
38. KIM HJ, LEE SH and LEE HG (2007b) An empirical study on the importance of psychological contract commitment in information systems outsourcing. The Journal of MIS Research 17(2), 50-82.
39. KLEIN KJ and KOZLOWSKI SWJ (2000) Multilevel Theory, Research, and Methods in Organizations: Foundation, Extensions, and New Directions Society for Industrial and Organizational Psychology Frontiers Series Jossey-Bass, San Francisco.
40. KOH CS, ANG D and STRAUB W (2004) IT outsourcing success: a psychological contract perspective. Information Systems Research 15(4), 356-373.
41. LACITY MC and HIRSCHHEIM R (1993) The information systems outsourcing bandwagon. Sloan Management Review 35(1), 73-86.
42. LACITY MC and WILLCOCKS LP (1998) An empirical investigation of information technology sourcing practices: lessons from experience. MIS Quarterly 22(3), 362-409.
43. LACITY MC and WILLCOCKS LP (2000) Relationships in IT outsourcing: a stakeholder perspective. In Framing the Domains of IT Management: Projecting the Future through the Past (ZMUD RW Ed) pp 355-384, Pinnaflex Educational Resources, Cincinnati, OH.
44. LACITY MC and WILLCOCKS LP (2001) Global Information Technology Outsourcing: In Search of Business Advantage. Wiley, Chichester, U.K.
45. LEE MKO (1996) IT outsourcing contracts: practical issues for management. Industrial Management and Data Systems 96(1), 15-20.
46. LEE JN (2001) The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success. Information and Management 38(5), 323-335.
47. LEE JN, HUYNH MQ, KWOK CW and PI SM (2003) IT outsourcing evolution: its past, present, and future. Communications of the Association for Computing Machinery 46(5), 84-89.
48. LEE JN and KIM YG (1999) Effect of partnership quality on IS outsourcing success: conceptual framework and empirical validation. Journal of Management Information Systems 15(4), 29-61.
49. LIDEN RC, SPARROWE RT and WAYNE SJ (1997) Leader-member exchange theory: the past and potential for the future. In Research in Personnel and Human Resources Management 15 (FERRIS GR Ed) pp 47-119, JAI Press, Greenwich, CT.
50. LOH L and VENKATRAMAN N (1995) An empirical study of information technology outsourcing: benefits, risks, and performance implication. In Proceedings of the 16th International Conference on Information Systems, Association for Information Systems, Amsterdam, the Netherlands.
51. MACKENZIE SB, PODSAKOFF PM and PODSAKOFF NP (2011) Construct measurement and validation procedures in MIS and behavioral research: integrating new and existing techniques. MIS Quarterly 35(2), 293-334.
52. MCKEEN JD and GUIMARAES T (1997) Successful strategies for user participation in systems development. Journal of Management Information Systems 14(2), 133-150.
53. MITHAS S, JONES JL and MITCHELL W (2008) Buyer intention to use internetenabled reverse auctions: the role of asset specificity, product specialization, and non-contractibility. MIS Quarterly 32(4), 705-724.
54. MORRISON EW and ROBINSON SL (1997) When employees feel betrayed: a model of how psychological contract violation develops. Academy of Management Review 22(1), 226-256.
55. NAM K, RAJAGOPALAN S, RAO HR and CHAUDHURY A (1996) A two-level investigation of information systems outsourcing. Communications of the Association for Computing Machinery 39(7), 36-44.
56. PAVLOU PA and GEFEN D (2005) Psychological contract violation in online marketplaces: antecedents, consequences, and moderating role. Information Systems Research 16(4), 372-399.
57. POHLMANN TR, MCNEILL P, ROEHRIG L and POWERS OE (2006) The Forrester wave: integrated desktop and service desk outsourcing. (9 March).
58. POPPO L and ZENGER T (2002) Do formal contracts and relational governance function as substitutes or complements? Strategic Management Journal 23(8), 707-725.
59. PREACHER K and HAYES A (2004) SPSS and SAS procedures for estimating indirect effects in simple mediator models. Behavior Research Methods, Instructions, & Computers 36(4), 717-731.
60. PREACHER K and HAYES A (2008) Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods 40(3), 879-891.
61. RAI A, MARUPING LM and VENKATESH V (2009) Offshore information systems project success: the role of social embeddedness and cultural characteristics. MIS Quarterly 33(3), 617-641.
62. RAI A, PATNAYAKUNI R and SETH N (2006) Firm performance impacts of digitally enabled supply chain integration capabilities. MIS Quarterly 30(2), 225-246.
63. RICHMOND WB, SEIDMANN A and WHINSTON AB (1992) Incomplete contracting issues in information systems development outsourcing. Decision Support Systems 8(5), 459-477.
64. ROBINSON SL (1996) Trust and breach of the psychological contract. Administrative Science Quarterly 41(4), 574-599.
65. ROBINSON SL, KRAATZ MS and ROUSSEAU DM (1994) Changing obligations and the psychological contract: a longitudinal study. Academy of Management Journal 37(1), 137-152.
66. ROBINSON SL and MORRISON EW (2000) The development of psychological contract breach and violation: a longitudinal study. Journal of Organizational Behavior 21(5), 525-546.
67. ROBINSON SL and ROUSSEAU DM (1994) Violating the psychological contract: not the exception but the norm. Journal of Organizational Behavior 15(3), 245-260.
68. ROUSSEAU DM (1989) Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal 2(2), 121-139.
69. ROUSSEAU DM (1995) Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements. Sage, Thousand Oaks, CA.
70. ROUSSEAU DM and MCLEAN PARKS J (1993) The contracts of individuals and organizations. In Research in Organizational Behavior (CUMMINGS LL and STAW BM, Eds) 1-43, JAI Press, Greenwich, CT.
71. RUSTAGI S, KING WR and KIRSCH LJ (2008) Predictors of formal control usage in IT outsourcing partnerships. Information Systems Research 19(2), 126-143.
72. SABHERWAL R (1999) The role of trust in outsourced IS development projects. Communications of the Association for Computing Machinery 42(2), 80-86.
73. SAUNDERS C, GEBELT M and HU Q (1997) Achieving success in information systems outsourcing. California Management Review 39(2), 63-79.
74. SILLINCE JAA and MOUAKKET S (1997) Varieties of political process during systems development. Information Systems Research 8(4), 368-397.
75. SUAZO MM, TURNLEY WH and MAI-DALTON RR (2005) Antecedents of psychological contract breach: the role of similarity and leadermember exchange. Paper presented at the Academy of Management Meetings, Honolulu, Hawaii.
76. SUBRAMANI M (2004) How do suppliers benefit from information technology use in supply chain relationship? MIS Quarterly 28(1), 45-73.
77. SUSARLA A, SUBRAMANYAM R and KARHADE P (2010) Contractual provisions to mitigate holdup: evidence from information technology outsourcing. Information Systems Research 21(1), 37-55.
78. TEKLEAB AG and TAYLOR MS (2003) Aren't there two parties in an employment relationship? Antecedents and consequences of organization- employee agreement on contract obligations and violations. Journal of Organizational Behavior 24(5), 585-608.
79. TIWANA A (2003) Knowledge partitioning in outsourced software development: a field study. In Proceedings of the Twenty-Fourth International Conference on Information Systems, Association for Information Systems, Seattle, WA, U.S.A.
80. TURNLEY WH, BOLINO MC, LESTER SW and BLOODGOOD JM (2003) The impact of psychological contract fulfillment on the performance of in-role and organizational citizenship behaviors. Journal of Management 29(2), 187-206.
81. TURNLEY WH and FELDMAN DC (2000) Re-examining the effects of psychological contract violations: unmet expectations and job dissatisfaction as mediators. Journal of Organizational Behavior 21(1), 25-42.
82. TUTEN TL and URBAN DJ (2001) An expanded model of business-tobusiness partnership formation and success. Industrial Marketing Management 30(2), 149-164.
83. VLAAR PWL, FENEMA PCV and TIWARI V (2008) Concreting understanding and value in distributed work: how members of onsite and offshore vendor teams give, make, demand, and break sense. MIS Quarterly 32(2), 227-255.
84. WUYTS S and GEYSKENS I (2005) The formation of buyer-supplier relationships: detailed contract drafting and close partner selection. Journal of Marketing 69(4), 103-117.