Motivational Determinants of Vendor Side Project Performance on Outsourced ISD Projects.

Existing research on Information Systems Development (ISD) contracts focuses on the stakeholder controlling the vendor on a single project. We extend this line of research and make three important contributions. First, we consider the fact that systems development organizations work on a portfolio of projects, and analyze how firms prioritize the effort expended on individual projects relative to other projects in their portfolio. Second, we consider the dynamics involved when performance on one project may lead the awarding of a future project. Third, we use ValenceInstrumentality-Expectancy (VIE) theory of work motivation (Vroom, 1964) to bring in valuable insight by analyzing this stream from the vendor side of the equation. These insights go beyond that provided by agency theory and organizational control mechanisms as they have hitherto focused on how clients control progress of ISD projects.