Global, International and Cultural Issues in IS


Cultural differences between outsourcers and vendor firms in offshore locations pose unique management challenges. One ofthese challenges is to find a control strategy that fits the cultural setting. However, most of the previous research has analyzedcultural and control issues separately from one another. The objective of this paper is to bring together these two distinctresearch streams. The result is a conceptual model describing the relationships between cultural differences and the choice ofdifferent control modes in IS offshoring projects. Propositions are derived from organizational control and national culturetheory. In particular, we introduce the concept of cultural intelligence as moderating the relationship between culturaldifferences and the choice of control. The resulting conceptual model developed in this paper makes important theoreticalcontributions to IS offshoring and serves as a basis for future empirical research.