Understanding client's commitment in business process outsourcing relationships

Authors:
Shih-Wei Chou;Hui-Tzu Min;I-Hua Hung
Affiliations:
National Kaohsiung First University of Science and Technology, Kaohsiung, Taiwan, R. O. C.;National Cheng Kung University, Tainan, Taiwan, R. O. C.;National Kaohsiung First University of Science of Technology, Kaohsiung, Taiwan, R. O. C.
Venue:
Proceedings of the 14th Annual International Conference on Electronic Commerce
Year:
2012

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Abstract

The formation of a client firm's commitment to a business process outsourcing (BPO) remains unclear. To address this gap, this study uses trust-commitment theory and the relational view to explain how the benefits from the service provider's capabilities motivate a client firm's commitment. These capabilities are conceptualized as the service provider's process flexibility, and task-knowledge coordination together with the client firm's absorptive capacity and process alignment between the service provider and the client. We then build a theoretical model by considering the influence of these variables on commitment.