The Impacts of Network Governance on the Performance of ITO: A Study of Taiwanese Firms

Information technology outsourcing ITO has been a spotlight issue for global enterprises and previous studies have suggested that ITO research has expanded from one organization and bilateral partnerships to a global form of network organization. Yet, little research has been conducted on the link between network governance and ITO performance as a way to understand an organization's ITO efforts. This study proposes a model that employs several constructs: inter-organizational coordination, contractual governance and relational governance, and technological hegemony. The model explores the mediating roles of these governance mechanisms and the moderating role of technological hegemony as it influences the IT manager's perception of the performance of ITO. Empirical testing of the model is based on a sample of 191 companies from Taiwanese industries. The results support the mediating effect of relational governance and the moderating effect of technological hegemony. The model and results offer a perspective on managing the performance of ITO as well as initial insight into the role of technological hegemony.