A two-level investigation of information systems outsourcing
Communications of the ACM
Management Science - Special issue: Frontier research on information systems and economics
IT outsourcing as strategic partnering: the case of the UK inland revenue
European Journal of Information Systems
The relationship advantage: information technologies, sourcing, and management
The relationship advantage: information technologies, sourcing, and management
The role of software processes and communication in offshore software development
Communications of the ACM - Supporting community and building social capital
Computer Contracts: An International Guide to Agreements and Software Protection
Computer Contracts: An International Guide to Agreements and Software Protection
Developing and Validating Trust Measures for e-Commerce: An Integrative Typology
Information Systems Research
Puzzles in software development contracting
Communications of the ACM - Information cities
Costly Bidding in Online Markets for IT Services
Management Science
Contracts in Offshore Software Development: An Empirical Analysis
Management Science
Building Effective Online Marketplaces with Institution-Based Trust
Information Systems Research
IT Outsourcing Strategies: Universalistic, Contingency, and Configurational Explanations of Success
Information Systems Research
IT Outsourcing Success: A Psychological Contract Perspective
Information Systems Research
Journal of Management Information Systems
The effect of service quality and partnership on the outsourcing of information systems functions
Journal of Management Information Systems
Information technology, incentives, and the optimal number of suppliers
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Toward an assessment of software development risk
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Journal of Management Information Systems
Trust and TAM in online shopping: an integrated model
MIS Quarterly
The strategic value of IT insourcing: An IT-enabled business process perspective
The Journal of Strategic Information Systems
Towards formulation of software project risk radars
International Journal of Business Information Systems
A systematic design for coping with model risk
Expert Systems with Applications: An International Journal
Information about information: a taxonomy of views
MIS Quarterly
Client strategies in vendor transition: A threat balancing perspective
The Journal of Strategic Information Systems
Decoupling, re-engaging: managing trust relationships in implementation projects
Information Systems Journal
International Journal of Business Information Systems
IS-Supported Managerial Control for China's Research Community: An Agency Theory Perspective
Journal of Global Information Management
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This study examines the role of business familiarity in determining how software development outsourcing projects are managed and priced to address risks. Increased business familiarity suggests both more prior knowledge, and hence reduced adverse selection risk, and increased implied trust about future behavior, and hence implied reduced moral hazard risk. Preferring high business familiarity partners may also alleviate concerns about incomplete contracts. By reducing these risks, higher business familiarity is hypothesized to be associated with higher priced projects, reduced penalties, and an increased tendency to contract on a time and materials rather than a fixed price basis. These hypotheses were examined with objective contractual legal data from contracts made by a leading international bank. Integrating trust theory into agency theory and into incomplete contract theory and examining unique contract data, the contribution of the study is to show that the premium on business familiarity and the trust it implies is not in directly affecting price, but, rather, in changing how the relationship is managed toward a tendency to sign time and materials contracts. Implications about integrating trust into agency theory and incomplete contract theory, as well as implications regarding trust premiums and software development outsourcing, are discussed.