Perceived Benevolence Trust, Perceived Competence Trust, and Onshore Information Systems Development Project Success

Abstract

Despite the increased organizational spending on information systems outsourcing, delivering business values from outsourcing initiatives is still a challenge for business managers in a developing economy. In recent studies, there has been much interest in addressing the challenge from a relational perspective. This study examines whether perceived benevolence trust and perceived competence trust affect knowledge transfer, which, in turn, impacts onshore information systems development outsourcing success within the context of Ethiopia. Drawing from the social exchange theory, knowledge transfer, and information systems literature, a conceptual model is developed and it reveals that knowledge transfer mediates the effects of perceived benevolence trust and perceived competence trust on onshore information systems development outsourcing success. The findings contribute to research and practice in information systems outsourcing relationships.