Abstract
Although digital contents markets grow very rapidly and are known as a higher value added industry, there is also potential risk in producing digital contents. Thus, many firms have begun to produce a firm's digital contents by outsourcing from other companies in order to catch-up new technologies and to make stable profits. However, since contracts are decided mostly based on bidding price and also standard contract are not available, there is a limit on the benefit from the contents outsourcing. Thus, this study argues that if both contract factors such as contract concreteness and flexibility are well managed, the on-line digital contents will increase the performance of a firm. This study deals with the influence on the firm's performance by the outsourcing in contract factors based on the empirical analysis. Using regression analysis with these two dependent variables, the findings showed that the contract concreteness had positive effects on both cost improvement performance and efficiency improvement performance, but the contract feasibility only had positive effect on efficiency improvement performance. In addition, the result of the study showed that the contract performance of outsourcing the digital contents have a positive impact on the partnership intention.