Abstract:

This study develops a research model of how involvement in the outsourcing arrangement and role clarity are related to vendor-client relationship and how the latter influences perceived outsourcing result. Analysis of cross-sectional data collected from 273 IT professionals supports the hypothesized relationships, showing that involvement in the outsourcing arrangement and role clarity influences vendor-client relationship, which in turn influences perceived outsourcing result. The analysis also provides evidence that the effect of involvement on perceived outsourcing result is fully mediated by vendor-client relationship while the effect of role clarity is only partially mediated by vendor-client relationship. The validity of the findings is confirmed by a structural equation model showing good fit and by other supporting tests of mediation. This study advances understanding of the interrelationships between involvement in the outsourcing arrangement, role clarity, vendor-client relationship and their relationships with perceived outsourcing result. The implications of these findings are discussed in the discussion section of the paper.