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.
AubertB., KishoreR., and IriyamaA. (2015). Exploring and Managing the ‘Innovation Through Outsourcing’ Paradox, Journal of Strategic Information Systems24 (4): 255–269.
2.
BapnaR., GuptaA., and RayetG. (2016). IT Outsourcing and the Impact of Advisors on Clients and Suppliers, Information Systems Research27 (3): 636–647.
3.
BenamatiJ., and RajkumarT.M. (2002). The Application Development Outsourcing Decision: An Application of the Technology Acceptance Model, The Journal of Computer Information Systems42 (4): 35–43.
4.
BresmanH., BirkimshawJ., and NobelR. (1999). Knowledge Transfer in International Acquisitions, Journal of International Business Studies30 (3): 439–462.
5.
CenfetelliR.T., and BassellierG. (2009). Interpretation of Formative Measurement in Information Systems Research, MIS Quarterly33 (4): 689–707.
6.
ChinW.W. (1998). The Partial Least Squares Approach to Structural Equation Modeling, Modern Methods for Business Research295 (2): 295–336.
7.
CousinsP.D., HandfieldR.B., LawsonB., and PetersenK.J. (2006). Creating Supply Chain Relational Capital: The Impact of Formal and Informal Socialization Processes, Journal of Operations Management24, 851–863.
8.
CullenS., and WillcocksL. (2003). Intelligent IT Outsourcing: Eight Building Blocks to Success, Oxford: Butterworth.
9.
DiamantopoulosA., and SiguawJ.A. (2006). Formative Versus Reflective Indicators in Organizational Measure Development: A Comparison and Empirical Illustration, British Journal of Management17 (4): 263–282.
10.
EspinosaJ.A., SlaughterS.A., KrautR.E., and HerbslebJ.D. (2007). Team Knowledge and Coordination in Geographically Distributed Software Development, Journal of Management Information Systems24 (1): 135–169.
11.
Fandos HerreraC., and Flavian BlancoC. (2011). Consequences of consumer trust in PDO food products: The role of familiarity, Journal of Product & Brand Management20 (4): 282–296.
12.
FornellC., and LarckerD.F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error, Journal of Marketing Research18 (1): 39–50.
13.
GarsonD. (2012). Partial Least Squares: Regression and Path Modeling, Asheboro, NC: Statistical Publishing Associates.
14.
GefenD., WyssS., and LichtensteinY. (2008). Business Familiarity as Risk Mitigation in Software Development Outsourcing Contracts, MIS Quarterly32 (3): 531–551.
15.
GopalA., and KokaB. (2012). The Asymmetric Benefits of Relational Flexibility: Evidence From Software Development Outsourcing, MIS Quarterly36 (2): 553–576.
16.
GopalA., and SivaramakrishnanK. (2008). On Vendor Preferences for Contract Types in Offshore Software Projects: The Case of Fixed Price vs. Time and Materials Contracts, Information Systems Research19 (2): 202–220.
17.
GooJ., HuangC.D., and HartP. (2008). A Path to Successful IT Outsourcing: Interaction Between Service-Level Agreements and Commitment, Decision Sciences39 (3): 469–506.
18.
HairJ.F., RingleC.M., and SarstedtM. (2011). PLS-SEM: Indeed a Silver Bullet, Journal of Marketing Theory and Practice19 (2): 139–152.
19.
HenselerJ., RingleC.M., and SarstedtM. (2015). A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling, Journal of the Academy of Marketing Science43 (1): 115–135.
20.
HowellsJ. (2006). Intermediation and the Role of Intermediaries in Innovation, Research Policy35: 715–728.
21.
HuckmanR., StaatsB., and UptonD. (2009). Team Familiarity, Role Experience, and Performance: Evidence from Indian Software Services, Management Science55 (1): 85–100.
22.
KernT., WillcocksL.P., and van HeckE. (2002). The Winner's Curse in IT Outsourcing: Strategies for Avoiding Relational Trauma, California Management Review44 (2): 47–69.
23.
KotlarskyJ., ScarbroughH., and OshriI. (2014). Coordinating Expertise Across Knowledge Boundaries in Offshore-Outsourcing Projects: The Role of Codification, MIS Quarterly38 (2): 607–627.
24.
LacityM.C., KhanS., YanA., and WillcocksL.P. (2010). A Review of the IT Outsourcing Empirical Literature and Future Research Directions, Journal of Information Technology25 (4): 395–433.
25.
LacityM.C., and WillcocksL.P. (2013). Beyond Cost Savings: Outsourcing Business Processes for Innovation, Sloan Management Review54 (3): 63–69.
26.
LacityM.C., and WillcocksL.P. (2014). Business Process Outsourcing and Dynamic Innovation, Strategic Outsourcing: An International Journal7 (1): 66–92.
27.
LacityM.C., KhanS., and YanA. (2016). Review of the Empirical Business Services Sourcing Literature: An Update and Future Directions, Journal of Information Technology31 (3): 269–328.
28.
LawsonB., TylerB.B., and CousinsP.D. (2008). Antecedents and Consequences of Social Capital on Buyer Performance Improvement, Journal of Operations Management26, 446–460.
29.
LeeK.C., and ChungN. (2009). Understanding factors affecting trust in and satisfaction with mobile banking in Korea: A modified DeLone and McLean's model perspective, Interacting with computers21 (5-6): 385–392.
30.
MacKenzieS.B., PodsakoffP.M., and PodsakoffN.P. (2011). Construct Measurement and Validation Procedures in MIS and Behavioral Research: Integrating New and Existing Techniques, MIS Quarterly35 (2): 293–334.
31.
MahnkeV., WarehamJ., and Bjorn-AndersenN. (2008). Offshore Middlemen: Transnational Intermediation in Technology Sourcing, Journal of Information Technology23 (1): 18–30.
32.
MorganT. (2003). Collaborative Innovation: How Clients and Service Providers Can Work by Design to Achieve It, London: Business Express Press.
33.
OshriI., KotlarskyJ., and GerbasiA. (2015). Strategic Innovation Through Outsourcing: The Role of Relational and Contractual Governance, Journal of Strategic Information Systems24 (3): 203–216.
34.
RottmanJ., and LacityM. (2006). Proven practices for effectively offshoring IT work, Sloan Management Review47 (3): 56–63.
35.
SoderlundM. (2002). Customer Familiarity and Its Effects on Satisfaction and Behavioral Intentions, Psychology & Marketing19 (10): 861–879.
36.
StewartJ.K., and HyysaloS. (2008). Intermediaries, Users and Social Learning in Technological Innovation, International Journal of Innovation Management12 (3): 295–325.
37.
SuN., LevinaN., and RossJ. (2016). The Long-Tail Strategy of IT Outsourcing, Sloan Management Review, Winter57 (2): 81–89.
38.
TadelisS. (2007). The Innovative Organization: Creating Value Through Outsourcing, California Management Review50 (1): 261–277.
39.
TranY., HsuanJ., and MahnkeV. (2011). How Do Innovation Intermediaries Add Value? Insight from New Product Development in Fashion Markets, R&D Management41 (1): 80–91.
40.
WeeksM.R., and FeenyD. (2008). Outsourcing: From Cost Management to Innovation and Business Value, California Management Review50 (4): 127–146.
41.
WhitleyE.A., and WillcocksL.P. (2011). Achieving Step-Change in Outsourcing Maturity: Toward Collaborative Innovation, MIS Quarterly Executive10 (3): 95–107.
42.
WhittenD., and LeidnerD. (2006). Bringing IT back: An analysis of the decision to backsource or switch vendors, Decision Sciences37 (4): 605–621.
