The Impact of National Culture on Control in IS Offshoring Projects

To our best knowledge, this is the first quantitative study on the impact of the supplier‘s national culture on the client‘s choice of control modes in IS offshoring projects. A survey-based field study was conducted, using a client-supplier matched pair as the unit of analysis. This approach allowed for the examination of the direct control relationship within 46 unique matched pairs. The study results offer empirical evidence that the supplier‘s national culture (i.e., power distance and time perception) affects the client‘s choice of controls in IS offshoring projects. However, the supplier‘s cultural background seems to play a less important role than suggested by prior research. These results (1) adapt previous research to the IS offshoring context, (2) enhance prior findings by establishing a more detailed understanding about the cultural influence on the exercise of controls as well as by confirming the significance of project size–an influencing factor that has previously shown mixed results, and (3) incorporate new constructs and measures in developing an integrated model that should be broadly applicable to other IS project contexts.