A relational view of knowledge sharing in public-private IT outsourcing relationships

Abstract

This article examines the factors determining the quality of the outcomes of public-private IT outsourcing (ITO) to create public value. We elaborated a model based on the relational view of interorganizational relations, complemented by the theory of boundary objects. We provide an empirical validation of this model from a sample of IT managers in state and local governments in Mexico. We found that public-private ITO can generate public value thanks to a high quality of the information system produced in related projects. Information system quality is supported by effective knowledge sharing between project partners. The quality of knowledge sharing is expressed by the quality of the contract and other artifacts that facilitate building shared understanding and by conflict resolution processes developed during the partnership. The quality of knowledge sharing depends on the level of two trust-related dimensions: benevolence and competence between outsourcing partners. In our model, we relate in a novel way trust, knowledge sharing, the quality of IT services produced and public value in the context of public-private ITO. We also propose an original formulation and validation of knowledge sharing dimensions, looking at the importance of specific knowledge interfaces to bridge semantic and pragmatic boundaries in public-private ITO.