Asset specificity key to software outsourcing success, challenges transaction cost theory
The article explores how different factors influence the success of outsourcing software development projects. By using transaction cost theory, the researchers looked at the impact of contractor reputation, asset specificity, and uncertainty on outsourcing outcomes. They found that while contractor reputation and uncertainty affect project success as expected, asset specificity had unexpected effects. Specifically, asset specificity led to less opportunistic behavior by contractors but also improved project success, contrary to typical predictions. This study highlights the importance of considering various factors when outsourcing software development projects.