Paper Type
Complete
Paper Number
PACIS2025-1728
Description
Despite the growth of Information Technology Outsourcing (ITO), high failure rates persist, often due to overlooked interpersonal dynamics between clients and vendors. While prior research emphasizes contractual and operational factors, the role of Psychological Contract (PsyCon) in shaping Relationship Quality (ReQ)—comprising trust and commitment—remains underexplored. This study aims to examine how specific PsyCon obligations (competency, relationship building, personal compatibility, and project ownership) influence ReQ in ITO partnerships. A qualitative case study of six dyadic client-vendor relationships was conducted, analyzing interview data from 12 participants selected based on long-term ITO engagement and recurring collaboration challenges. Findings reveal that PsyCon significantly affects ReQ, with high ReQ mitigating breach impacts. Theoretically, this study advances a framework linking PsyCon dimensions to ReQ in ITO, enriching relational governance literature. Practically, it offers managers actionable insights for fostering trust and commitment through interpersonal alignment, ultimately improving outsourcing success.
Recommended Citation
Jeong, Jongkil Jay and Ahmad, Atif, "The Psychological Contract and Its Impact on Relationship Quality in IT Outsourcing" (2025). PACIS 2025 Proceedings. 2.
https://aisel.aisnet.org/pacis2025/it_strategy/it_strategy/2
The Psychological Contract and Its Impact on Relationship Quality in IT Outsourcing
Despite the growth of Information Technology Outsourcing (ITO), high failure rates persist, often due to overlooked interpersonal dynamics between clients and vendors. While prior research emphasizes contractual and operational factors, the role of Psychological Contract (PsyCon) in shaping Relationship Quality (ReQ)—comprising trust and commitment—remains underexplored. This study aims to examine how specific PsyCon obligations (competency, relationship building, personal compatibility, and project ownership) influence ReQ in ITO partnerships. A qualitative case study of six dyadic client-vendor relationships was conducted, analyzing interview data from 12 participants selected based on long-term ITO engagement and recurring collaboration challenges. Findings reveal that PsyCon significantly affects ReQ, with high ReQ mitigating breach impacts. Theoretically, this study advances a framework linking PsyCon dimensions to ReQ in ITO, enriching relational governance literature. Practically, it offers managers actionable insights for fostering trust and commitment through interpersonal alignment, ultimately improving outsourcing success.
Comments
Strategy