Conjunct Roles Of Client And Vendor Control In Offshore-Outsourced Project Performance

This study explores the conjunct roles of a series of formal and informal control mechanisms exerted, respectively, by client and vendor in offshore-outsourced project performance. Using a sample of 203 offshore projects executed by vendors in China, the results indicate that client process control enhances (or complements) the effect of vendor outcome control, yet impairs (or substitutes) the effect of vendor process control. Conversely, client outcome control enhances (or complements) the effect of vendor process control, yet impairs (or substitutes) the effect of vendor outcome control. Further, for the two informal control mechanisms, the results indicate that client relational control enhances (or complements) the effects of both vendor process and outcome control, whereas vendor clan control only enhances (or complements) the effect of client outcome control on offshore-outsourced project performance. These findings not only contribute new insights for the organisational control and the outsourcing literature, but also provide managerial guidance for client and vendor managers on how to exert and fine-tune their control mechanisms to promote project performance.