Achieving Value Co-creation in IT Outsourcing

Authors

Szu-Yuan Sun, National Kaohsiung First University of Science and Technology
Li-Shan Chen, National Kaohsiung First University of Science and Technology

Document Type

Article

Abstract

Over the past few decades, information technology outsourcing has become a widely used and researched means for enterprises to enhance their performance. As future collaboration is the most desirable outcome between enterprises and IT outsourcing vendors, the purpose of this study is to construct a new model to examine: 1) whether information technology outsourcing satisfaction impact future collaboration, 2) whether value co-creation impact outsourcing satisfaction, 3)which factors influence value co-creation, and 4) whether trust influence enterprises’ commitments. This research assumes that: 1) trust predicts enterprises’ commitments; 2) customer orientation and participation, service quality, communication culture, and enterprises’ commitment predicts value co-creation; 3) value co-creation predicts information technology outsourcing satisfaction, 4) information technology outsourcing satisfaction predicts future collaboration. This model will allow enterprises and information technology outsourcing vendors to identify factors that can increase the chances for future collaboration. To achieve this goal, this research applied structural equation modelling, using Smart Partial Least Square (SmartPLS) software, as a method to empirically validate the model through a survey analysis containing 213 CEO or senior managers’ opinions obtained through valid measurements. The actual sampling yielded 207 useful questionnaires with a valid response rate of 97%. The results of this article show that trust strongly positively influences normative commitment, continuance commitment, and affective commitment; seven factors of customer behaviours and beliefs (such as: customer orientation and participation, service quality, communication culture, normative commitment, continuance commitment, and affective commitment) positively influence value co-creation; value co-creation strongly positively influences information technology outsourcing satisfaction; and information technology outsourcing satisfaction strongly positively affects future collaboration. The implications of this study and future work are also presented.

Recommended Citation

Sun, Szu-Yuan and Chen, Li-Shan (2016) "Achieving Value Co-creation in IT Outsourcing," Journal of International Technology and Information Management: Vol. 25: Iss. 1, Article 1.
DOI: https://doi.org/10.58729/1941-6679.1249
Available at: https://scholarworks.lib.csusb.edu/jitim/vol25/iss1/1