Exploring the Effect of Familiarity and Advisory Services on Innovation Outcomes in Outsourcing Settings. (September 2018)

• Record Type: Journal Article
• Authors: Oshri, Ilan; Arkhipova, Daria; Vaia, Giovanni
• Is Part Of: Journal of information technology. Volume 33:Number 3(2018:Sep.)
• Page Start: 203
• Page End: 215
• Publication Date: 2018-09
• Subjects: innovation -- advisory services -- familiarity -- outsourcing; Information technology -- Periodicals; Information storage and retrieval systems -- Periodicals; Information resources management -- Periodicals; 658.40380285
• DOI: 10.1057/s41265-018-0052-3
• Languages: English
• ISSNs: 0268-3962

Abstract

Innovation through outsourcing can be hindered as a result of opportunistic behaviour. As a remedy, the extant literature encourages firms to enhance familiarity between the parties and/or consider using advisory services. In this paper, we seek to examine the effect of knowledge familiarity (client-supplier and supplier-client) and relational familiarity on innovation outcomes. Further, we also examine whether the presence of advisors improves innovation outcomes. Our results suggest that a higher degree of relational familiarity and client-supplier knowledge familiarity are associated with better innovation outcomes. We also reveal that client-supplier knowledge familiarity mediates the effect of supplier-client knowledge familiarity on innovation outcomes. We did not find support for the direct effect of advisors on innovation outcomes. Instead, the presence of advisors moderates the effect of supplier-client and relational familiarity on innovation outcomes. We consider the implications for the IS outsourcing literature and practice.