Abstract for: Toward a Dynamic View on Client Dependence in IS Outsourcing Relationships: A Qualitative System Dynamics Approach
When companies disregard to manage their dependence in exchange relationships, they leave themselves vulnerable to opportunistic behavior by their partner. However, organizational dependence is subject to various mechanisms that additionally turns it into a dynamic concept. The dynamic nature of dependence is an under-researched topic, though, especially when it comes to dependence in information systems outsourcing relationships. This paper draws on five client- supplier relationships in an outsourcing setting to explore the dynamic behavior of client dependence in detail. A causal loop diagram is developed to provide client companies insights into hazardous mechanisms at place when outsourcing the development and maintenance of their information systems to external parties.