Browse > Article
http://dx.doi.org/10.17662/ksdim.2010.6.4.251

The Relationship between Control Mechanism and Commitment in Information Systems Outsourcing : The Mediating effects of Trust  

Choi, Jae Woong (부천대학 e-비즈니스과)
Han, Man Yong (안산1대학 세무회계과)
Jung, Byoung Ho (한국외국어대학교 경영정보학과)
Publication Information
Journal of Korea Society of Digital Industry and Information Management / v.6, no.4, 2010 , pp. 251-265 More about this Journal
Abstract
Recently, with increasing interest in the subject of interfirm relationship mechanism, some information systems researchers point out that existing outsourcing theories are limited in explaining the choice of governance mechanisms in interfirm relational exchanges. Recognizing the importance of trust-commitment, this study focuses on the relationship of between control mechanism and commitment. Especially the role of trust as mediator is mainly researched. A mediation model was suggested on the basis of theoretical linkages from prior relevant studies. The research model was empirically tested with 73 IS outsourcing projects. The findings have significant impactions for further research and practice. Findings are as follows: First, outcome control, process control, social control had positive effects on trust and commitment. Second, inter-organizational trust played as a partial mediator on the relationship between control mechanisms and commitment. Based on these findings, the implication and the limitation of the study were presented including some directions for future studies.
Keywords
Control Mechanism; Trust; Commitment; Information System Outsourcing;
Citations & Related Records
연도 인용수 순위
  • Reference
1 V. Grover, M. J. Cheon, and J. T. C. Teng, "The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions," Journal of Management Information Systems, Vol. 12, No. 4, 1996, pp. 89-116.   DOI
2 A. Tiwana, and M. Keil, "The One Minute Risk Assessment Tool," Communication of the ACM, Vol. 47, No. 11, 2004, pp. 73-77.   DOI   ScienceOn
3 B. Aubert, S. Rivard, and M. Patry, "A Transaction Cost Approach to Outsourcing Behavior: Some Empirical Evidence," Information and Management, Vol. 30, No. 2, 1996, pp. 51-64.   DOI   ScienceOn
4 F. W. McFarlan and R. L. Nolan, "How to Manage an IT Outsourcing Alliance," Sloan Management Review, Vol. 36, No. 2, 1995, pp. 9-22.
5 J. Barthelemy, "The Hard and Soft Sides of IT Outsourcing Management," European Management Journal, Vol. 21, No. 5, 2003, pp. 539-548.   DOI   ScienceOn
6 J. C. Anderson, and J. A. Narus. "A Model of Distributor Firm and Manufacturer Firm Working Partnerships," Journal of Marketing, Vol. 54, No. 1, 1990, pp. 42-58.   DOI   ScienceOn
7 T. Kern, and L. Willcocks, "Exploring Relationships in Information Technology Outsourcing: The Interaction Approach," European Journal of Information Systems, Vol. 11, No. 1, 2002, pp. 3-19.   DOI   ScienceOn
8 V. Choudhury, and R. Sabherwal, "Portfolios of Control in Outsourced Software Development Projects," Information Systems Research, Vol. 14, No. 3, 2003, pp. 261-277.
9 S. Domberger, The Contracting Organization: A Strategic Guide to Outsourcing, Oxford University Press, 1998.
10 T. K. Das, and B. S. Teng, "Resource and Risk Management in the Strategic Alliance Making Process," Journal of Management Information Systems, Vol. 24, No. 1, 1998a, pp. 21-42.
11 T. K. Das, and B. S. Teng, "The Risk of Trust: A Conceptual Analysis," Academy of Management Review, Vol. 23, No. 3, 1998b, pp. 491-512.
12 L. Kirsch, V. Sambamurthy, D. G. Ko, and R. L. Purvis, "Controlling Information Systems Development Projects: The View from the Client," Management Science, Vol. 48, No. 4, 2002, pp. 484-498.   DOI   ScienceOn
13 B. J. Jaworski, "Toward a Theory of Marketing Control: Environmental Context, Control Types, and Consequences," Journal of Marketing, Vol. 52, No. 3, 1988, pp. 23-39.   DOI   ScienceOn
14 J. C. Henderson, S. Lee. "Managing I/S Design Teams: A Control Theories Perspective," Management Science, Vol. 38, No. 6, 1992, pp. 757-777.   DOI   ScienceOn
15 W. G. Ouchi, "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, Vol. 25, No. 9, 1979, pp. 833-848.   DOI   ScienceOn
16 S. K. Ethiraj, P. Kale, M. S. Krishnan, and J. V. Singh, "Where Do Capabilities Come From and How Do They Matter? A Study in the Software Services Industry," Strategic Management Journal, Vol. 26, No. 1, 2005, pp. 25–45.   DOI   ScienceOn
17 L. J. Kirsch, "Portfolios of Control Modes and IS Project Management," Information Management Research, Vol. 8, No. 3, 1997, pp. 215-239.
18 L. B. Cardinal, "Technology Innovation in the Pharmaceutical Industry: The Use of Organizational Control in Managing Research and Development," Organization Science, Vol. 12, No. 1, 2001, pp. 1-18.   DOI   ScienceOn
19 L. J. Kirsch, "The Management of Complex Tasks in Organizations: Controlling the Systems Development Process," Organization Science, Vol. 7, No. 1, 1996, pp. 1-21.   DOI   ScienceOn
20 W. J. Orlikowski, "Integrated Information Environment or Matrix of Control? The Contradictory Implications of Information Technology," Accounting Management and Information Technologies, Vol. 1, No. 1, 1991, pp. 9-42.   DOI   ScienceOn
21 K. M. Eisenhardt, "Control: Organizational and Economic Approaches," Management Science, Vol. 31, No. 2, 1985, pp. 134-149.   DOI   ScienceOn
22 S. J. Ashford, and A. S. Tsui, "Self-Regulation for Managerial Effectiveness: The Role of Active Feedback Seeking," Academy of Management Journal, Vol. 34, No. 2, 1991, pp. 251-280.   DOI   ScienceOn
23 W. Ouchi, "Markets, Bureaucracies, and Clans," Administrative Science Quarterly, Vol. 25, No. 1, 1980, pp. 129-141.   DOI   ScienceOn
24 L. J. Kirsch, and L. L. Cummings, "Contextual Influences On Self-Control of IS Professionals Engaged in Systems Development," Accounting Management and Information Technology, Vol. 6, No. 3, 1996, pp. 191-219.   DOI   ScienceOn
25 R. M. Morgan, and D. H. Shelby, "The Commitment-Trust Theory of Relationship Marketing," Journal of Marketing, Vol. 58, No. 3, 1994, pp. 20-38.   DOI   ScienceOn
26 J. Mohr, and R. Spekman, "Characteristics of Partnership Success : Partnership Attributes, Communication Behavior, and Conflict Resolution Techniques," Strategic Management Journal, Vol. 15, No. 2, 1994, pp. 135-152.   DOI   ScienceOn
27 S. Ganesan, "Determinants of Long-Term Orientation in Buyer-Seller Relationship," Journal of Marketing, Vol. 58, No. 2, 1994, pp. 1-19.   DOI   ScienceOn
28 J. H. Dyer, and H. Singh, "The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage," Academy of Management Review, Vol. 23, No. 4, 1998, pp. 660–679.
29 C. Moorman, R. Deshpande, and G. Zaltman, "Factors Affecting Trust in Marketing Research Relationships," Journal of Marketing Research, Vol. 57, No. 1, 1993, pp. 81-101.   DOI   ScienceOn
30 J. Coopey, "The Learning Organization: Power, Politics and Ideology," Management Learning, Vol. 26, No. 2, 1995, pp. 193-213.   DOI   ScienceOn
31 S. Ganesan, and R. Hess, "Dimensions and Levels of Trust: Implication for Commitment to a Relationship," Marketing Letters, Vol. 8, No. 4, 1997, pp. 439-448.   DOI   ScienceOn
32 C. Argyris, "The Impact of Budgets on People," Controllership foundation New York, 1952.
33 D. Zand, "Trust and Managerial Problem Solving," Administrative Science Quarterly, Vol. 17, No. 2, 1972, pp. 229-239.   DOI   ScienceOn
34 L. Poppo, and T. Zenger, "Do Formal Contracts and Relational Governance Function as Substitutes or Complements?," Strategic Management Journal, Vol. 23, No. 8, 2002, pp. 707-725.   DOI   ScienceOn
35 M. Goold, and A. Campbell, Strategies and Styles : The Role of the Centre in Managing Diversified Corporations, Oxford: Blackwell, 1987.
36 S. B. Sitkin, "On the Positive Effect of Legalization on Trust," Research on Negotiation in Organization, Vol. 5, 1995, pp. 185-217.
37 M. Lewicki, and M. A. Stevenson. "Trust Development in Negotiation: Proposed Actions and a Research Agenda," Business & Professional Ethics Journal, Vol. 16, No. 1-3, 1997, pp. 99-132.   DOI
38 D. F. Feeny, L. P. Willcocks. "Core IS Capabilities for Exploiting Information Technology," Sloan Management Review, Vol. 39, No. 3, 1998, pp. 9-21.
39 G. Fitzgerald, and L. Willcocks. "Contracts and Partnerships in the Outsourcing of IT," International Conference on Information Systems, 1994, pp. 91-98.
40 S. Wuyts, and I. Geyskens, "The Formation of Buyer–Supplier Relationships: Detailed Contract Drafting and Close Partner Selection," Journal of Marketing, Vol. 69, No. 4, 2005, pp. 103-117.   DOI   ScienceOn
41 R. Gulati, and H. Singh, "The Architecture of Cooperation: Managing Coordination Costs and Appropriation Concerns in Strategic Alliances," Administrative Science Quarterly, Vol. 43, 1998, pp. 781–814.   DOI   ScienceOn
42 J. I. Martinez, and J. C. Jarillo, "The Evolution of Research on Coordination Mechanisms in Multinational Corporations," Journal of International Business Studies, Vol. 20, 1989, pp. 489-514.   DOI   ScienceOn
43 J. C. Holmes, "The Exchange Process in Close Relationships: Microbehavior and Macromotives," The Justice Motive in Social Behavior, 1981, pp. 261-284.
44 J. H. Dyer, and W. Chu, "The Role of Trustworthiness in Reducing Transaction Costs and Improving Performance: Empirical Evidence from the United States, Japan and Korea," Organization Science, Vol. 14, No. 1, 2003, pp. 57-68.   DOI   ScienceOn
45 M. Zineldin, and P. Johnson, "An Examination of the Main Factors Affecting Trust/Commitment in Supplier-Dealer Relationships: An Empirical Study of the Swedish Wood Industry," The TQM, Vol. 12, No. 4, 2000, pp. 245-266.   DOI   ScienceOn
46 P. M. Ring, and A. Van de Ven, "Structuring Cooperative Relationships between Organizations," Strategic Management Journal, Vol. 13, No. 7, 1992, pp. 483-498.   DOI   ScienceOn
47 R. Monczka, K. Petersen, R. Handfield, and G. Ragatz, "Success Factors in Strategic Supplier Alliances: the Buying Company Perspective," Decision Sciences Journal, Vol. 29, No. 3, 1998, pp. 553-577.   DOI   ScienceOn
48 A. Madhok, "Revisiting Multinational Firms' Tolerance for Joint Ventures: A Trust-based Approach," Journal of International Business Studies, Vol. 26, No. 1, 1995, pp. 117-137.   DOI   ScienceOn
49 J. Lewin, and W. Johnston, "Relationship Marketing Theory in Practice: a Case Study," Journal of Business Research, Vol. 39, No. 1, 1997, pp. 23-31.   DOI   ScienceOn
50 C. Moorman, G. Zaltman, and R. Deshpande, "Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations," Journal of Marketing Research, Vol. 29, No. 3, 1992, pp. 314-328.   DOI   ScienceOn
51 G. T. Gundlach, R. S. Achrol, and J. T. Mentzer, "The Structure of Commitment in Exchange," Journal of Marketing, Vol. 59, No. 1, 1995, pp. 78-92.   DOI   ScienceOn
52 J. A. Siguaw, P. M. Simpson, and T. L. Baker, "Effects of Supplier Market Orientation Distributor Market Orientation and the Channel Relationship: The Distributor Perspective," Journal of Marketing, Vol. 62, No. 3, 1998, pp. 99-111.   DOI   ScienceOn
53 C. C. Snow, and D. C. Hambrick, "Measuring Organizational Strategies: Some Theoretical and Methodological Problems," Academy of Management Review, Vol. 5, No. 4, 1980, pp. 527-538.
54 R. M. Baron, and D. A. Kenny, "The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations," Journal of Personality and Social Psychology, Vol. 51, No. 1, 1986, pp. 1173-1182.   DOI
55 L. A. Gordon, and V. K. Narayayan, "Management Accounting Systems, Perceived Environmental Uncertainty and Organization Structure: An Empirical Investigation," Accounting, Organizations and Society, Vol. 9, No. 1, 1984, pp. 33-47.   DOI   ScienceOn
56 이재원・김병민, "전략지향 이론의 관점에서 본 SCM의 확산과 성과의 결정요인," 디지털산업정보학회 논문지, 제2권, 제3호, 2006, pp. 1-14.