Positioning Clients in Dyadic Dependence Structures of IS Outsourcing Relationships – Conceptualization and Empirical Findings

Abstract

While dependence is a well-known concern in IS outsourcing, there is little literature dealing with this phenomenon as proposed by traditional dependence research in other disciplines. In particular, little efforts have been made to contrast a client’s dependence with supplier’s dependence in a single study. To bring forward the conceptualization in our field, we investigated five outsourcing relationships with respect to dependence structures in a dyad. Perceptual differences became apparent while comparing clients’ perceived dependencies with suppliers’ ones. As a second contribution we aimed to explain different client positions in the dependence structures. Therefore, the dependence construct was broken down into its constituting facets. Besides importance of the outsourcing relationship and a supplier’s substitutability, spillover effects emerged as an unanticipated third category of dependence. Originating from other exchange relationships with the same partner, these effects can distort the dependence structure in the focal relationship. Implications for future research are discussed