Eleni Lioliou

Formal and relational governance in IT outsourcing: substitution, complementarity and the role of the psychological contract

This study aims to contribute to the literature on IT outsourcing governance by advancing our understanding of mechanisms of substitution and complementarity between formal and relational governance. Our study illustrates certain conditions under which substitution and complementarity can occur and depicts a two‐way causal relationship between them. Our examination further provides a more in‐depth assessment of relational governance by using the concept of the psychological contract. Our results demonstrate that the psychologically binding nature of the psychological contract makes it a particularly forceful substitute to formal governance, while its associations with other relationship aspects make it a forceful complement.

A double-edged sword: the impact of institutions and political relations on the international market expansion of Chinese state-owned enterprises

This study examines the interaction of three factors, the involvement of the home country government, of host country institutions and of bilateral political relations, as they affect the post-entry market expansion of Chinese state-owned enterprises (SOEs) in emerging, developing and developed countries. This study employs the case study method. The findings show that home country government involvement can either support or constrain SOEs’ subsequent market expansion. In emerging and developing countries, underdeveloped institutions create difficulties which can deter the market expansion of Chinese SOEs. In developed host countries, the challenges associated with unfamiliar institutions can be overcome through experiential learning. The political relations between the host country and China may influence the impact of institutions in the host country on the market expansion of Chinese SOEs.

Vendor Opportunism in IT Outsourcing: A TCE and Social Capital Perspective

Academic researchers have paid significant attention to the drivers of opportunistic behavior, yet our understanding of how opportunistic behavior can be mitigated remains relatively fragmented. Our investigation will focus on the social context and more specifically on the role of social capital in the deterrence of opportunistic behavior. On the basis of two qualitative case studies in the financial sector, we will illustrate how the structural, cognitive and relational dimensions of social capital can reduce internal and behavioral uncertainty between the outsourcing partners, thereby facilitating the mitigation of opportunistic behavior. In our study we combine the theory of transaction costs with social capital theory and demonstrate how they can usefully complement each other to enhance our understanding of mechanisms that can deter opportunistic behavior.

Sourcing in or out: Implications for social capital and knowledge sharing

The sharing of knowledge between a firm and its internal or external service suppliers has become an important element of contemporary sourcing arrangements. Moreover, the knowledge based view (KBV) has long suggested that due to stronger cognitive links within firms, internal compared to external service provision creates better conditions for knowledge sharing. Empirical evidence for this claim is however scarce, and the KBV does not explain the mechanisms for more knowledge sharing in internal sourcing in detail. Moreover, there is now some evidence to suggest that firms’ relationships with external sourcing partners are becoming more similar to those with captive centres, which represent a less traditional form of insourcing setting. To scrutinize the possible knowledge sharing advantages of internal sourcing in more depth, we turn to social capital (SC) research. There are some theoretical claims that SC and knowledge sharing are stronger within than between firms, and there is ample evidence that SC facilitates knowledge sharing. Our survey results suggest that the extent of knowledge sharing and SC are indeed stronger in a captive than in an external sourcing mode, and that structural (tie strength), cognitive (shared understanding), and relational (trust) aspects of SC mediate the effect of sourcing mode on the extent of knowledge sharing. By contrast, network stability (a structural aspect) mediated knowledge sharing only indirectly, by reinforcing the other SC aspects. We highlight important contributions to research and practice of IS outsourcing and social capital.

Dynamic capabilities, managerial mindsets and the outcomes of internationalization: the case of Chinese state-owned enterprises

Applying the concepts of dynamic capabilities and managerial mindsets, this chapter examines the factors affecting the internationalization outcomes of Chinese SOEs using the case study approach. Our findings show that those SOEs which inherited organizational routines under the regime of a centrally planned economy have encountered great challenges in achieving international success. Our results also suggest that dynamic capabilities and managerial mindsets are the main drivers determining the international performance of SOEs. These findings have important policy and managerial implications.