A Process Model of Complementarity and Substitution of Contractual and Relational Governance in IS Outsourcing

Huber, Thomas; Fischer, Thomas A.; Dibbern, Jens; Hirschheim, Rudy (2013). A Process Model of Complementarity and Substitution of Contractual and Relational Governance in IS Outsourcing. Journal of Management Information Systems, 30(3), pp. 81-114. M. E. Sharpe

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This paper develops a process model of how and why complementarity and substitution form over time between contractual and relational governance in the context of information systems outsourcing. Our analysis identifies four distinct process patterns that explain this formation as the outcome of interaction processes between key elements of both contractual and relational governance. These patterns unveil the dynamic nature of complementarity and substitution. In particular, we show that the relationship between contractual and relational governance oscillates between complementarity and substitution. Those oscillations are triggered mainly by three types of contextual events (goal fuzziness, goal conflict, and goal misalignment). Surprisingly, substitution of informal control did not occur as an immediate reaction to external events but emerged as a consequence of preceding complementarity. Thus, our study challenges the prevailing view of an either/or dichotomy of complementarity and substitution by showing that they are causally connected over time.

Item Type:

Journal Article (Original Article)

Division/Institute:

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

UniBE Contributor:

Huber, Thomas; Fischer, Thomas and Dibbern, Jens

Subjects:

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

Publisher:

M. E. Sharpe

Projects:

[229] IT Outsourcing Governance

Language:

English

Submitter:

Ramed Wakil

Date Deposited:

12 Mar 2014 10:32

Last Modified:

18 Dec 2014 08:50

BORIS DOI:

10.7892/boris.44307

URI:

https://boris.unibe.ch/id/eprint/44307

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