How vendor capabilities impact IT outsourcing performance: An investigation of moderated mediation model

Abstract

Purpose

The purpose of this paper is to explore the underlying mechanisms through which integration capability and learning capability influence IT outsourcing performance from vendor’s perspective.

Design/methodology/approach

This paper develops a moderated mediation model to explain the underlying influence processes of integration capability and learning capability on vendor’s performance. A sample of 237 vendor firms was obtained from China through two separated surveys. The hypotheses were tested with the partial least squares method and bias-corrected bootstrapping method.

Findings

The empirical results indicate that external integration capability (EIC) mediates the effect of internal integration capability (IIC) on vendor outsourcing performance, and the relationship between EIC and vendor performance is positively moderated by learning capability, while learning capability has a negative moderating effect on the link between IIC and vendor performance. Further, the conditional indirect effect is suggested. The indirect effect of IIC on vendor performance through EIC becomes non-significant when learning capability is low.

Originality/value

This study highlights the counterintuitive notion that learning capability may not always have uniformly positive effects and figure out the mechanism through which integration capability and learning capability can effectively improve IT outsourcing performance.

Citation

Wang, M.-M. and Wang, J.-J. (2019), "How vendor capabilities impact IT outsourcing performance: An investigation of moderated mediation model", Journal of Enterprise Information Management, Vol. 32 No. 2, pp. 325-344. https://doi.org/10.1108/JEIM-07-2018-0167