Examining the relationship between trust and control in IT outsourcing relationships

What is the role of control in maintaining trust in outsourcing relationships? Although the literature is quite rich on conceptualizing the relationship between control and trust in inter-organizational relationships, there exist quite sparse quantitative works which help to evaluate the models developed. In this paper, we analyze data from 156 IT outsourcing relationships of German banks in order to get insights into the actual relationships between different modes of control and the level of relational trust in these relationships. Additionally, we examine the role of service quality (measured in terms of reliability and responsiveness) in this context. The results show that trust is positively related with most modes of control, and that there is indicative evidence that control supports trust in high-service quality situations while it leads to a reduction of trust in relationships suffering from bad service quality (cycle of trust vs. distrust).