CONTRACTUAL AND RELATIONAL GOVERNANCE OF SOFTWARE OUTSOURCING PROJECTS: A PROPOSED RESEARCH MODEL AND RESEARCH AGENDA

Organizations are under increasing pressure to exhibit the value of their outsourcing. However, previous IS outsourcing research studies failed to provide evidence on how IT client-provider relationships should be managed to ensure outsourcing success. This article draws on theories of transaction cost and social exchange to develop a model examining outsourcing relationship governance mechanisms. Important determinants of contractual and relational governance and the effectiveness of the control mechanisms on relational outcomes, opportunism and commitment, are examined. This research agenda may theoretically extend IS outsourcing research by incorporating a framework to explore outsourcing relationship management and to practically explain software outsourcing phenomenon

The Impacts Of Network Governance On The Erformance Of Ito: A Study Of Taiwanese Firms

Information technology outsourcing (ITO) has been a topic of great interest, one that organization researchers have studied extensively. Previous studies have suggested that ITO research has expanded from one organization and bilateral partnerships to a network form of organization that links multiple organizations and spans inter-organizational boundaries. Yet, little research has been conducted on the link between network governance and ITO performance as a way to understand an organization’s ITO efforts. This study proposes a model that employs several constructs: inter-organization coordination, contractual governance and relational governance, and technological hegemony. The model explores the mediating roles of these governance mechanisms and the moderating role of technological hegemony as it influences the IT manager’s perception of the performance of ITO. Empirical testing of the model is based on a sample of 191 companies from Taiwanese industries. The results support the mediating effect of relational governance and the moderating effect of technological hegemony. The implications of these findings for ITO management are discussed

The adoption of IT governance for outsourcing and virtual team management in IT projects

Abstract : IT governance is an important factor in the success of Information Technology systems and implementation. The adoption of IT governance and its effectiveness is not clear or documented. The purpose of this study is to understand the adoption and effectiveness of IT governance in South African organisations as they conduct Information Technology projects both internally and externally. This study is explorative in nature as it seeks to understand the effectiveness of IT governance using the questionnaire as an instrument for collecting data. The research methodology of this study is quantitative. The target sample is IT (Information Technology) employees that work in various South African organisations both private and public. The sample size is 164 employees. The findings of this study show that South African organisations make extensive use of IT governance. There is data indicating that IT governance is applied locally on their dayto- day IT projects. The study found that there is management support and deliberate effort to monitor and measure the effectiveness of IT governance. The study further shows that there is strong adoption of IT governance in external IT projects such as outsourced IT projects. Finally, it shows a strong use of virtual teams in IT projects in South African organisations, and also a relatively high application of IT governance principles in virtual teamwork.M.Com. (Information Technology Management

Knowledge transfer mechanisms of University-Industry collaboration: an empirical analysis of the biotechnology industry

This study aims to adopt the transaction cost economics, resource-based theory, and social exchange theory to theoretically analyse university-industry knowledge transfer activities and their determinants and consequences. Four mechanisms are identified for university-industry knowledge transfer, namely equity-based transfer, research contract-based transfer, general contract-based transfer, and relation-based transfer. These determinants are examined in three categories, namely, resource factors, resource dependency and complementarities, and transaction cost factors. The sample was gathered from 145 Taiwanese biotechnology firms, and the results indicate that collaboration with a university improves a firm ’s knowledge transfer performance in terms o f knowledge acquisition, knowledge generation, and commercial success. Relation-based transfer and general contract-based transfer are the most effective ways in which to transfer knowledge, and these are followed by research contract-based transfer, and equity-based transfer respectively. Furthermore, the empirical results illustrate that not all types o f resources contribute to university-industry knowledge transfer activities and knowledge transfer performance. A firm’s resources are found to be useful for the formation o f collaboration, and a university’s resources are beneficial for improving knowledge transfer performance, particularly when they have more knowledge resources and organisational resources. Technology transfer office resources and the relationship resources o f universities and firms facilitate an equity-based transfer and improve the performance o f knowledge transfer. Flowever, the greater property-based resources o f a university and a firm do not generate more university-industry knowledge transfer activities and a better knowledge transfer performance. A university’s greater property-based resources can even decrease the knowledge transfer performance. In addition, it was found that knowledge asset specificity and market uncertainty are related to the formation o f a relation-based transfer, general contract-based transfer, and research contract-based transfer. However, resource dependency and resource complementarity do not appear to have an effect on facilitating university-industry knowledge transfer activities and knowledge transfer performance

Public-private partnerships: determinants of the type of governance structure

Despite the spread of Public-Private Partnerships (PPPs) and their interest among academicians and policy-makers, many investigations generally treat them as a homogenous mode of governance neglecting their different forms. The present work investigates the factors that determine the concrete form of PPP finally adopted. We use the Transaction Costs Theory (TCT) to analyse 11,821 PPPs in 110 developing countries from 1997 to 2017. The results show that the greater the amount of specific investment and the more unfavourable the context in which it is implemented, PPP adopts forms where the private party has a greater degree of control

Revisiting the Relationship Between Contract Governance and Contractors’ Opportunistic Behavior in Construction Projects

Contracts are crucial for curbing opportunism, a common phenomenon in construction projects. This article differentiates among the contractual mechanisms of obligatoriness, monitoring, and coordination, and studies the relationships between the complexity of the above functions and different types of opportunistic behavior. Using data from 262 clients (i.e., the parties issuing contracts) in the Chinese construction industry, this article reveals that contractual obligatoriness has a negative effect on strong-form opportunistic behavior. At the same time, contractual monitoring and coordination have positive and negative effects, respectively, on weak-form opportunistic behavior. Furthermore, we find that goodwill trust mediates contractual coordination's effect on weak-form opportunistic behavior. This article contributes to both the contract management literature and the interorganizational relationship governance literature by providing more nuanced findings that speak to the debate surrounding the relationship between contractual governance and opportunistic behavior, elaborate the mediation mechanism, and provide insights into the contractual function view. © 2019 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other work

The effectiveness of evolutionary governance in mega construction projects: a moderated mediation model of relational contract and transaction cost

Mega construction project governance is an evolutionary process characterized by high transaction costs and complex interrelationships. Based on transaction cost theory, relational contract theory and evolutionary governance theory, this study explored the impact of evolutionary project governance on mega construction project performance by collectively considering the mediating effect of transaction costs and the moderating effect of a relational contract. Partial least squares structural equation modeling was used to test the hypotheses based on data collected from 176 respondents. The results show that evolutionary project governance would be more effective in increasing project performance and reducing transaction costs in the context of a relational contract. Reducing transaction costs is an effective way to improve project performance, and it is an important mediation variable between evolutionary project governance and project performance in the context of a relational contract. The results enrich the theory on mega construction project governance and reduce the imbalance between theory and practice in previous studies

Interplay between network configurations and network governance mechanisms in supply networks a systematic literature review

Purpose: This work systematically reviews the extant academic management literature on supply networks. It specifically examines how network configurations and network governance mechanisms influence each other in supply networks. Design: 125 analytical and empirical studies were identified using an evidence-based approach to review the literature mainly published between 1985 and 2012. Synthesis: Drawing on a multi-disciplinary theoretical foundation, this work develops an integrative framework to identify three distinct yet interdependent themes that characterize the study of supply networks: a) Network Configurations (structures and relationships); b) Network Governance Mechanisms (formal and informal); and c) The Interplay between Network Configurations and Network Governance Mechanisms. Findings: Network configurations and network governance mechanisms mutually influence each other and cannot be considered in isolation. Formal and informal governance mechanisms provide better control when used as complements rather than as substitutes. The choice of governance mechanism depends on the nature of exchange; role of management; desired level of control; level of flexibility in formal contracts; and complementary role of formal and informal governance mechanism. Research implications: This nascent field has thematic and methodological research opportunities for academics. Comparative network analysis using longitudinal case studies offers a rich area for further study. Practical Implications: The complexity surrounding the conflicting roles of managers at the organisation and network levels poses a significant challenge during the development and implementation stage of strategic network policies. Originality/value: This review reveals that formal and informal governance mechanisms provide better control when used as complements rather than as substitutes