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

Authors:
Hyun-Soo Han;Jae-Nam Lee;Yun-Weon Seo
Affiliations:
Department of Information Technology Management, College of Information and Communications, Hanyang University, Seoul, Republic of Korea;Korea University Business School, Anam-Dong, Seongbuk-Gu, Seoul 136-701, Republic of Korea;Branch of System Development Marine Corps Headquarters, Republic of Korea
Venue:
Information and Management
Year:
2008

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Abstract

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.