It Outsourcing At The Stage Of Psychological Contract: Governance-In-Practice And Governance-In-Contract

The governance of IT outsourcing (ITO) has been identified as an essential determinant for ITO success. While prior studies have shed light on how to determine effective governance to inform practice, little research attention has been reversely initiated from practice when certain governance model is implemented. In this paper, I have addressed two concepts of Governance-in-Contract (GiC) and Governance-in-Practice (GiP) incorporating social network perspective and practice theory. The theoretical framework is built upon the stage of psychological contract in Miranda and Kavan’s (2005) Moment of Governance (MoG) model. I applied a portion of the framework in a single case study combining Social Network Analysis (SNA) and document analysis. The findings contrast GiP with GiC, and show how they are interrelated on the same stage of psychological contract. I hope to inspire future studies to further investigate the GiP with qualitative enquiries such as in-depth interviews, combining deeper SNA with pertinent quantitative measures.

[1]  Sarah L. Jack The Role, Use and Activation of Strong and Weak Network Ties: A Qualitative Analysis , 2005 .

[2]  Alejandra Martínez-Monés,et al.  Combining qualitative evaluation and social network analysis for the study of classroom social interactions , 2003, Comput. Educ..

[3]  Rajiv Sabherwal,et al.  The role of trust in outsourced IS development projects , 1999, CACM.

[4]  K. Eisenhardt Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[5]  Todd R. Zenger,et al.  Do Formal Contracts and Relational Governance Function as Substitutes or Complements , 2002 .

[6]  R. Whittington,et al.  Strategy-as-Practice: Taking Social Practices Seriously , 2012 .

[7]  Anandasivam Gopal,et al.  Research Note - The Role of Organizational Controls and Boundary Spanning in Software Development Outsourcing: Implications for Project Performance , 2010, Inf. Syst. Res..

[8]  Amrit Tiwana,et al.  Systems Development Ambidexterity: Explaining the Complementary and Substitutive Roles of Formal and Informal Controls , 2010, J. Manag. Inf. Syst..

[9]  Viswanath Venkatesh,et al.  Bridging the Qualitative-Quantitative Divide: Guidelines for Conducting Mixed Methods Research in Information Systems , 2013, MIS Q..

[10]  Mike Newman,et al.  Control, trust, power, and the dynamics of information system outsourcing relationships: A process study of contractual software development , 2008, J. Strateg. Inf. Syst..

[11]  R. Hanneman Introduction to Social Network Methods , 2001 .

[12]  P. Adler Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism , 2001 .

[13]  Peter Weill,et al.  Don't Just Lead, Govern: How Top-Performing Firms Govern IT , 2004, MIS Q. Executive.

[14]  John Mingers,et al.  Combining IS Research Methods: Towards a Pluralist Methodology , 2001, Inf. Syst. Res..

[15]  Wenpin Tsai,et al.  Social networks and organizations , 2003 .

[16]  A. V. D. Ven,et al.  Determinants of Coordination Modes within Organizations , 1976 .

[17]  Leslie P. Willcocks,et al.  A review of the IT outsourcing literature: Insights for practice , 2009, J. Strateg. Inf. Syst..

[18]  Jeffrey L. Bradach,et al.  Price, Authority, and Trust: From Ideal Types to Plural Forms , 1989 .

[19]  Detmar W. Straub,et al.  IT Outsourcing Success: A Psychological Contract Perspective , 2004, Inf. Syst. Res..

[20]  Rajiv Kishore,et al.  The Role of Service Level Agreements in Relational Management of Information Technology Outsourcing: An Empirical Study , 2009, MIS Q..

[21]  C. Bruce Kavan,et al.  Moments of governance in IS outsourcing: conceptualizing effects of contracts on value capture and creation , 2005, J. Inf. Technol..

[22]  Robert W. Zmud,et al.  Influencing the effectiveness of IT governance practices through steering committees and communication policies , 2010, Eur. J. Inf. Syst..

[23]  Andreas Reckwitz Toward a Theory of Social Practices , 2002 .

[24]  C. Haythornthwaite Social network analysis: An approach and technique for the study of information exchange☆ , 1996 .

[25]  M. Hatch,et al.  Building theory from practice , 2005 .

[26]  Carol V. Brown Examining the Emergence of Hybrid IS Governance Solutions: Evidence From a Single Case Site , 1997, Inf. Syst. Res..

[27]  S. Ghoshal,et al.  Social Capital, Intellectual Capital, and the Organizational Advantage , 1998 .

[28]  C. Saunders,et al.  Achieving Success in Information Systems Outsourcing , 1997 .

[29]  Stanley Wasserman,et al.  Social Network Analysis: Methods and Applications , 1994, Structural analysis in the social sciences.

[30]  P. Ring,et al.  Developmental Processes of Cooperative Interorganizational Relationships , 1994 .

[31]  Leslie P. Willcocks,et al.  A review of the IT outsourcing empirical literature and future research directions , 2010, J. Inf. Technol..