The impacts of social capital on information technology outsourcing decisions: A case study of a Taiwanese high-tech firm

Abstract

This case study examines how social ties which are embedded in industrial networks and which have evolved over time may impact information technology (IT) outsourcing decisions. Our findings show that prior relationships do affect ongoing IT outsourcing decisions in the various dimensions. The results also show that social capital may be a double-edged sword that is both a resource in facilitating IT outsourcing and a burden that undermines the rationality of decision makers.