PACIS 2020 Proceedings


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The difficulty of extracting innovation from information technology (IT) outsourcing engagements poses an important managerial problem as client firms, more often than not, fail to harness the innovative capacity of their IT service providers. This study aims to contribute to a better understanding of how such engagements can be managed more effectively. Based on empirical evidence collected at a long-term care home, our qualitative case study unearths influences on the innovation potential of four observed innovation through IT outsourcing initiatives. Organisational change readiness theory adapted to an innovation context is used as theoretical lens. Notable influences on the collective willingness and perceived ability to support an innovation initiative are found to spring from the outsourcing project, organisational and market context. The receptivity of these contextual influences is highly content-specific to the particular innovation initiative. Corrupting influences may emerge unexpectedly that need to be proactively responded to with correcting influences.



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