Contracting for software development
Management Science
Management Science - Special issue: Frontier research on information systems and economics
Contracts in Offshore Software Development: An Empirical Analysis
Management Science
Information technology, incentives, and the optimal number of suppliers
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Contractual Provisions to Mitigate Holdup: Evidence from Information Technology Outsourcing
Information Systems Research
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Contract theory suggests that bargaining power affect contract negotiation and design. Most of contracting research studied the role of bargaining power in initial contract design but ignore its effects on ex post renegotiation. To fill this research gap, we empirically examine the effects of client's bargaining power on contract design and ex post renegotiation using a dataset of 945 IT outsourcing agreement. We found that client firm's bargaining power was influential in different stages of contract negotiation, providing evidences to support the theory. We also found that the timing of renegotiation was also an important factor determining ex post renegotiation.