A Conceptual Model for Bidirectional Service, Information and Product Quality in an IS Outsourcing Collaboration Environment

TL;DR

This paper proposes a conceptual model based on social exchange theory to understand how high-quality services, information, and products are mutually exchanged in highly collaborative outsourced IS projects, emphasizing continuous effort and financial incentives.

Contribution

It introduces a bidirectional SIP quality model in collaborative outsourcing, highlighting the interdependence of SIP quality and linking financial stakes to promote mutual high quality.

Findings

SIP quality is mutually dependent in collaborative environments.

Efforts to improve SIP quality should be reciprocal.

Financial incentives can enhance SIP quality exchange.

Abstract

This paper advances theory on the process of collaboration between entities and its implications on the quality of services, information, and/or products (SIPs) that the collaborating entities provide to each other. It investigates the scenario of outsourced IS projects (such as custom software development) where the extent of collaboration between a client and vendor is high. Using the social exchange theory, the proposed conceptual model tries to establish the "bidirectional" nature of SIP quality in a collaborative environment, where the SIPs exchanged are possibly "dependent" on each other, and if any entity wishes to receive high SIP quality then it should make efforts to provide high SIP quality in return too. Furthermore, it advocates increasing efforts to link financial stakes (tangible or intangible monetary benefits or risks) to the quality of SIP being continuously exchanged throughout the project lifecycle.