How Innovation And Organizational Learning Capability Influence IT Outsourcing Performance

In recent years, IT outsourcing industry is becoming an unstoppable trend of the world economy development. Despite the dramatically increasement of IT outsourcing business, not all IT outsourcing can be successful. The practitioners and scholars have realized the importance of IT outsourcing performance. Scholars have studied on the influencing factors of IT outsourcing performance. However, these studies are mostly based on the clients’ perspective, relatively lack of research on vendors’perspective. Vendor is an important participant in IT Outsourcing, therefore, this paper studies the IT outsourcing performance based on the vendors’perspective.Scholars have noted that innovation and organizational learning capability have an impact on performance, but the existing literature is still controversial about the mechanism of action between innovation/organizational learning capability and organizational performance. In view of the knowledge-intensive IT outsourcing field, innovation, and organizational learning capability are effective ways for vendors to enhance their advantages and ensure the success of the project. Therefore, the innovation and organizational learning capability are more important for vendors’performance. However, related research is relatively scarce. Furthermore, IT outsourcing process is a frequent interaction process between client and vendor, so it is easy to find that relationship quality is another important factor for IT outsourcing performance. Innovation, organizational learning capability and relationship quality belong to the factors that affect the process of IT outsourcing, nevertheless, existing literatures only analyze a single factor influences on the performance of IT outsourcing, and they are lack of integrated thinking. The study applies the social exchange theory and resource based theory to construct a theoretical model which contains innovation, organizational learning capability and relationship quality on IT outsourcing vendors’perspective.This paper makes an empirical analysis of the theoretical model based on the actual data of Chinese enterprises who are undertaking the IT outsourcing projects. In this paper, we randomly select400companies from Dalian Software Industry Association700IT outsourcing vendors member companies. Questionnaires are issued to these enterprises. Finally we collect237valid questionnaires. This paper carries out data analysis on these questionnaires with SPSS15.0and SmartPLS2.0, and then verifies the proposed assumptions and theoretical model. The conclusions are (1) innovation have no significantly direct effects on vendor’s IT service outsourcing performance, but innovation could improve relationship quality to indirectly affect vendor’s IT service outsourcing performance;(2) organizational learning capability have no significantly direct effects on vendor’s IT service outsourcing performance, but organizational learning capability could improve relationship quality to indirectly affect vendor’s IT service outsourcing performance;(3) innovation has more effects than organizational learning capability on vendor’s IT service outsourcing performance. This paper will conduce to provide new perspectives for the research of IT outsourcing, and highlight the importance of innovation, organizational learning capability to vendor’s IT service outsourcing performance. Simultaneously, this paper will give scientific reference for China vendors improving organizational performance through innovation and organizational learning capability.