Exploring the Effect of Familiarity and Advisory Services on Innovation Outcomes in Outsourcing Settings

Authors

Ilan Oshri, Loughborough School of Business and Economics, Loughborough University, Loughborough, UK;Follow
Daria Arkhipova, Department of Management, Ca’ Foscari University Venice, San Giobbe – Cannaregio, 873, 30121 Venice, Italy
Giovanni Vaia, Department of Management, Ca’ Foscari University Venice, San Giobbe – Cannaregio, 873, 30121 Venice, Italy

Document Type

Research Article

Abstract

Innovation through outsourcing can be hindered as a result of opportunistic behaviour. As a remedy, the extant literature encourages firms to enhance familiarity between the parties and/or consider using advisory services. In this paper, we seek to examine the effect of knowledge familiarity (client-supplier and supplier-client) and relational familiarity on innovation outcomes. Further, we also examine whether the presence of advisors improves innovation outcomes. Our results suggest that a higher degree of relational familiarity and client-supplier knowledge familiarity are associated with better innovation outcomes. We also reveal that client-supplier knowledge familiarity mediates the effect of supplier-client knowledge familiarity on innovation outcomes. We did not find support for the direct effect of advisors on innovation outcomes. Instead, the presence of advisors moderates the effect of supplier-client and relational familiarity on innovation outcomes. We consider the implications for the IS outsourcing literature and practice.

DOI

10.1057/s41265-018-0052-3

Recommended Citation

Oshri, Ilan; Arkhipova, Daria; and Vaia, Giovanni (2018) "Exploring the Effect of Familiarity and Advisory Services on Innovation Outcomes in Outsourcing Settings," Journal of Information Technology: Vol. 33: Iss. 3, Article 3.
DOI: 10.1057/s41265-018-0052-3
Available at: https://aisel.aisnet.org/jit/vol33/iss3/3