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Vendor capabilities and outsourcing success: A resource-based view

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Abstract

Outsourcing is a generally accepted method for fulfilling an organization’s information systems (IS) needs. A prominent motive for outsourcing is a desire to increase the organization’s access to high-quality information technology and expertise. There is, however, little research that examines the connection between vendor capabilities and customer satisfaction. This paper addresses that gap by using the resource-based view of the firm to investigate linkages between vendor capabilities, IS quality, and customer satisfaction.

A survey was completed by managers of outsourcing customer firms. The results were analyzed using Partial Least Squares (PLS). The results indicate that customers evaluate a vendor primarily in terms of technological capabilities, followed by relationship management capabilities. The vendor’s understanding of the customer’s business was not considered to be significant. There is a significant connection between the vendor’s capabilities and the quality of the IS function, which in turn was related to customer satisfaction.

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Goles, T. Vendor capabilities and outsourcing success: A resource-based view. Wirtschaftsinf 45, 199–206 (2003). https://doi.org/10.1007/BF03250900

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Keywords

  • causal modeling
  • outsourcing
  • partial least squares (PLS)
  • resource-based theory
  • survey
  • vendor capabilities