The Effect of Knowledge Sharing on IS Outsourcing Success

IS outsourcing is one of the major issues facing organizations in today’s rapidly changing business environment. It is often presented as an attractive business proposition to improve productivity, reduce costs and increase competitiveness. This study examined the relationship between knowledge sharing and IS outsourcing success based on the social capital theory. It shows the knowledge sharing is critical factor for outsourcing partners to face potential changes and challenges over time to lead to IS outsourcing success. The research findings are depicted as following: Trust and shared vision are significant variables to knowledge sharing. The social interaction benefits in building trust and reaching shared vision. Knowledge sharing has a positive effect on IS outsourcing success and organizational learning capability moderates the relationship between knowledge sharing and IS outsourcing success especially for the lower learning capability company.