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Researching IT multi-sourcing and opportunistic behavior in conditions of uncertainty: A case approach

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  • Lioliou, Eleni
  • Willcocks, Leslie
  • Liu, Xiaohui

Abstract

Multi-sourcing arrangements are a major trend in the contemporary outsourcing landscape, but our understanding of what makes these complex ventures effective remains relatively fragmented. Our study focuses on the multi-sourcing and opportunistic behavior of service providers, and in particular a relatively neglected but major driver of opportunistic behavior, namely the uncertainty surrounding the transaction. Developing an extended transaction cost economics perspective, our investigation focuses on the roles of internal and behavioral uncertainty and the occurrence of opportunistic behavior. We research a rich multi-sourcing case study within the financial services sector and compare and re-analyze a detailed case in the literature. According to our findings, internal uncertainty creates an ‘alignment of actions’ problem between outsourcing partners, while behavioral uncertainty can shape an ‘alignment of objectives’ problem, leading to the occurrence of opportunistic behavior. Our findings further contribute to a more thorough understanding of ways to reduce these uncertainties and facilitate coopetition between multiple vendors.

Suggested Citation

  • Lioliou, Eleni & Willcocks, Leslie & Liu, Xiaohui, 2019. "Researching IT multi-sourcing and opportunistic behavior in conditions of uncertainty: A case approach," Journal of Business Research, Elsevier, vol. 103(C), pages 387-396.
    • Handle: RePEc:eee:jbrese:v:103:y:2019:i:c:p:387-396
    DOI: 10.1016/j.jbusres.2019.04.002
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    References listed on IDEAS

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    1. Parida, Vinit & Wincent, Joakim & Oghazi, Pejvak, 2016. "Transaction costs theory and coordinated safeguards investment in R&D offshoring," Journal of Business Research, Elsevier, vol. 69(5), pages 1823-1828.
    2. Ravi Bapna & Anitesh Barua & Deepa Mani & Amit Mehra, 2010. "Research Commentary ---Cooperation, Coordination, and Governance in Multisourcing: An Agenda for Analytical and Empirical Research," Information Systems Research, INFORMS, vol. 21(4), pages 785-795, December.
    3. De Vita, Glauco & Tekaya, Arafet & Wang, Catherine L., 2010. "Asset specificity's impact on outsourcing relationship performance: A disaggregated analysis by buyer-supplier asset specificity dimensions," Journal of Business Research, Elsevier, vol. 63(7), pages 657-666, July.
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    Cited by:

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    2. Ghiyoung P. Im & Manju Ahuja, 2023. "The Interdependence of Coordination and Cooperation in Information Technology Outsourcing," Information Systems Research, INFORMS, vol. 34(4), pages 1791-1806, December.
    3. Ravi Bapna & Alok Gupta & Gautam Ray & Shweta Singh, 2023. "Single-Sourcing vs. Multisourcing: An Empirical Analysis of Large Information Technology Outsourcing Arrangements," Information Systems Research, INFORMS, vol. 34(3), pages 1109-1130, September.
    4. Secundo, Giustina & Riad Shams, S.M. & Nucci, Francesco, 2021. "Digital technologies and collective intelligence for healthcare ecosystem: Optimizing Internet of Things adoption for pandemic management," Journal of Business Research, Elsevier, vol. 131(C), pages 563-572.
    5. Deng, Ziliang & Zhu, Ziyan & Johanson, Martin & Hilmersson, Mikael, 2022. "Rapid internationalization and exit of exporters: The role of digital platforms," International Business Review, Elsevier, vol. 31(1).

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