Examining client perceptions of partnership quality and its dimensions in an IT outsourcing relationship

Lane, Michael S. and Lum, Weng Haan (2010) Examining client perceptions of partnership quality and its dimensions in an IT outsourcing relationship. Australasian Journal of Information Systems, 17 (1). pp. 47-76. ISSN 1449-8618

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Abstract

This paper reports on an empirical study of the multidimensionality of partnership quality in IT outsourcing arrangements and the relationships between these dimensions of partnership quality. A two-phase national survey was conducted to collect empirical data to confirm the dimensions of partnership quality in an IT outsourcing arrangement from the client organisation perspective and to identify the significant relationships between these dimensions using a second generation multivariate analysis technique—partial least squares (PLS). The findings from results of the data analyses show that inter-organisational trust, shared business understanding and to a lesser extent, functional and dysfunctional conflict between the client organisation and the outsourcing vendor in an IT outsourcing relationship are the key determinants of partnership quality. The key outcome variable for high partnership quality between the client organisation and the outsourcing vendor in an IT outsourcing relationship is mutual beneficial sharing of risks and benefits. Commitment in an IT outsourcing relationship is confirmed as a multidimensional construct of behaviour commitment and temporal/continuance commitment and was found to be influenced by the other dimensions of partnership quality. The key findings of this study provide support for the notion that trust and shared business understanding are key drivers in the IT outsourcing partnership style relationship ensuring that the sharing of risks and benefits are realised and conflict is minimised leading to a high quality and ultimately successful partnership between the client organisation and the outsourcing vendor. Furthermore our findings indicate that behavioural commitment to the contractual obligations of an IT outsourcing relationship sustains an ongoing temporal commitment to the partnership between the client organisation and the outsourcing vendor.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 2.5 License.
Depositing User: Dr Michael Lane
Faculty / Department / School: Historic - Faculty of Business - School of Information Systems
Date Deposited: 21 Mar 2011 02:55
Last Modified: 03 Jul 2013 00:10
Uncontrolled Keywords: IT outsourcing relationship; partnership; partnership quality; interorganisational trust, business understanding, risk and benefit sharing, dysfunctional and functional conflict, behavioural and temporal commitment
Fields of Research (FOR2008): 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150307 Innovation and Technology Management
20 Language, Communication and Culture > 2001 Communication and Media Studies > 200105 Organisational, Interpersonal and Intercultural Communication
08 Information and Computing Sciences > 0806 Information Systems > 080609 Information Systems Management
Socio-Economic Objective (SEO2008): E Expanding Knowledge > 97 Expanding Knowledge > 970108 Expanding Knowledge in the Information and Computing Sciences
URI: http://eprints.usq.edu.au/id/eprint/9331

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