Abstract

Dependence on an IT supplier is a well-known risk for client companies in IS outsourcing. However, little research efforts have been made to compare both exchange partners’ dependencies in an IS outsourcing setting. This contradicts with traditional dependence research which views this concept as a property of a relation and not as an attribute of an organization. A case study of five IS outsourcing relationships provides insights into un-/balanced and joint dependencies in a dyad. To explain variances in client dependence, the dependence construct is broken down into its constituting facets. Besides an information system’s importance and supplier’s substitutability, spillover effects emerged as an unanticipated third determinant. Originating from other exchange relationships with the IT supplier, these effects can distort the dependence structure in the focal relationship.

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