This study aims to contribute to the literature on IToutsourcing governance by advancing our understanding of mechanisms of substitution and complementarity between formal and relational governance. Our study illustrates certain conditions under which substitution and complementarity can occur and depicts a two-way causal relationship between them. Our examination further provides a more indepth assessment of relational governance by using the concept of the psychological contract. Our results demonstrate that the psychologically binding nature of the psychological contract makes it a particularly forceful substitute to formal governance, while its associations with other relationship aspects make it a forceful complement.
Using the Heckman two-stage method, this study empirically investigates whether board directors' work experience in government and multinational corporations (MNCs), as well as the proportion of outside directors affects export propensity and export performance based on a sample of Korean firms. We find that the Korean firms with former government officials on the board are more likely to engage in exporting, although there is no empirical evidence supporting export performance. The findings also show that firms with former MNC employees on the board demonstrate higher levels of export propensity and export performance. Similarly, firms with a higher proportion of outside directors exhibit a higher level of export propensity and export performance. These findings highlight the importance of the board of directors in Korean firms' first stage of internationalization and provide new insights into which type of board members can benefit their firms in terms of export propensity and export performance.
• This is a post-peer-review, pre-copyedit version of an article pub- Abstract: Academic researchers have attributed significant attention to the drivers of opportunistic behavior, yet our understanding of how opportunistic behavior can be mitigated remains relatively fragmented. Our investigation will focus on the social context and more specifically on the role of social capital in the deterrence of opportunistic behavior. Based on two qualitative case studies in the financial sector, we will illustrate how the structural, cognitive, and relational dimensions of social capital can reduce internal and behavioral uncertainty between the outsourcing partners, thereby facilitating the mitigation of opportunistic behavior. In our study we combine the theory of transaction costs with social capital theory and demonstrate how they can usefully complement each other to enhance our understanding of mechanisms that can deter opportunistic behavior.
Multi-sourcing arrangements are a major trend in the contemporary outsourcing landscape, but our understanding of what makes these complex ventures effective remains relatively fragmented. Our study focuses on the multi-sourcing and opportunistic behavior of service providers, and in particular a relatively neglected but major driver of opportunistic behavior, namely the uncertainty surrounding the transaction. Developing an extended transaction cost economics perspective, our investigation focuses on the roles of internal and behavioral uncertainty and the occurrence of opportunistic behavior. We research a rich multi-sourcing case study within the financial services sector and compare and re-analyze a detailed case in the literature. According to our findings, internal uncertainty creates an 'alignment of actions' problem between outsourcing partners, while behavioral uncertainty can shape an 'alignment of objectives' problem, leading to the occurrence of opportunistic behavior. Our findings further contribute to a more thorough understanding of ways to reduce these uncertainties and facilitate coopetition between multiple vendors.
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