PACIS 2022 Proceedings

Paper Number

1262

Abstract

This study aims to discuss governance structure, relational governance, and IT coordination as governance mechanisms, which improve outsourcing goal performance through information system outsourcing (ISO) features and achieve outsourcing goals by reducing transaction cost and raising outsourcing flexibility in ISO features. The moderating effects of task complexity on the relationship between governance mechanisms and ISO features are also examined. A case study and a quantitative study were conducted. Interviews with three organizations were conducted to gather practical insights into the theoretical framework. Empirical data were collected from 214 enterprises with ISO experience. The results indicate that relational governance is the most effective method to improve outsourcing features. ISO features dominate the firm’s goal achievement and facilitate the firm’s goal expectations. Theoretical and managerial implications were also provided.

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