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

Article

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.
Article Title

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

ERA Journal ID19280
Article CategoryArticle
AuthorsLane, Michael S. (Author) and Lum, Weng Haan (Author)
EditorsHeales, Jon, Campbell, John, McDonald, Craig and Parker, Craig
Journal TitleAustralasian Journal of Information Systems
Journal Citation17 (1), pp. 47-76
Number of Pages30
Year2010
PublisherUniversity of Canberra
Place of PublicationCanberra, Australia
ISSN1326-2238
1449-8618
Web Address (URL)http://dl.acs.org.au/index.php/ajis/article/view/525/520
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.

KeywordsIT outsourcing relationship; partnership; partnership quality; interorganisational trust, business understanding, risk and benefit sharing, dysfunctional and functional conflict, behavioural and temporal commitment
ANZSRC Field of Research 2020359999. Other commerce, management, tourism and services not elsewhere classified
470108. Organisational, interpersonal and intercultural communication
460908. Information systems organisation and management
Byline AffiliationsSchool of Information Systems
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