How Formal Governance Affects Multisourcing Success: A Multi-level Perspective

Krancher, Oliver; Oshri, Ilan; Kotlarsky, Julia; Dibbern, Jens (2018). How Formal Governance Affects Multisourcing Success: A Multi-level Perspective. In: 39th International Conference on Information Systems. San Francisco, USA.

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Multisourcing has become a common sourcing model in recent outsourcing practice. Yet, the extant and relevant IS literature has so far offered limited insight into how to stipulate both individual (i.e., individual vendor) and joint (the entire vendor network) performance while ensuring governance efficiency. Our study set about addressing this gap by examining how these three dimensions of multisourcing success can be achieved through formal governance. Specifically, we considered bilateral formal control, collective formal control and conflict arbitration (among vendors) as key formal governance elements. Results from a pan-European survey of client firms pursuing multisourcing projects show that bilateral formal control sets the stage to achieve both individual and joint performance, while conflict arbitration strengthens individual performance, and collective formal control strengthens joint performance. Governance efficiency is improved when both collective formal control and conflict arbitration are high. We also found that conflict arbitration strengthens the positive effect of collective formal control on both individual and joint performance. Our findings highlight the importance of governing inter-vendor relationships in multisourcing arrangements as opposed to relying solely on bilateral governance. Our study extends the limited literature on IS multisourcing, and assists managers in considering the strategies they wish to pursue when choosing appropriate governance mechanisms.

Item Type:

Conference or Workshop Item (Paper)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Information Systems
03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Information Systems > Information Engineering

UniBE Contributor:

Krancher, Oliver and Dibbern, Jens

Subjects:

000 Computer science, knowledge & systems
600 Technology > 650 Management & public relations
300 Social sciences, sociology & anthropology > 330 Economics

Projects:

[639] IT-Multisourcing Official URL

Language:

English

Submitter:

Oliver Krancher

Date Deposited:

10 Oct 2018 08:18

Last Modified:

06 Nov 2018 10:45

Uncontrolled Keywords:

Multisourcing, formal governance, collective governance, bilateral governance, conflict arbitra-tion, multisourcing success, joint performance, governance efficiency

BORIS DOI:

10.7892/boris.120403

URI:

https://boris.unibe.ch/id/eprint/120403

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