Managing IT Suppliers: A Capability-Based Approach

Abstract

This chapter addresses the opportunities for capabilities exchange within the process of interaction between a firm and an IT (Information Technology) supplier. Research on the features of this type of relationship has focused on IT implementation, relationship between IT resources, organisation performance and competitive advantage, IT outsourcing relationships and definition of IT capabilities. However, the current understanding of the context where IT capabilities are exchanged within consultancy projects and how this exchange emerges is rather limited. The chapter aims to bridge this gap by adopting the IMP (Industrial Marketing and Purchasing) group’s interaction approach as a tool to conduct an in-depth investigation of a case study to analyse the context, the parties and the interactions through which IT capabilities are exchanged. Evidence was found that interpersonal relationships between users and consultants within consultancy projects are crucial to reduce uncertainty by establishing long-lasting and stable relationships. As a result, during consultancy projects IT-related resources, in the form of IT physical infrastructures, human IT resources and IT intangible resources, are exchanged and combined to create or enhance IT capabilities. Furthermore, the success of such an exchange depends very much on the degree of social and interpersonal exchange.