This paper advances theory on the process of collaboration between entitiesand its implications on the quality of services, information, and/or products(SIPs) that the collaborating entities provide to each other. It investigatesthe scenario of outsourced IS projects (such as custom software development)where the extent of collaboration between a client and vendor is high. Usingthe social exchange theory, the proposed conceptual model tries to establishthe "bidirectional" nature of SIP quality in a collaborative environment, wherethe SIPs exchanged are possibly "dependent" on each other, and if any entitywishes to receive high SIP quality then it should make efforts to provide highSIP quality in return too. Furthermore, it advocates increasing efforts to linkfinancial stakes (tangible or intangible monetary benefits or risks) to thequality of SIP being continuously exchanged throughout the project lifecycle.
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