Research Article
The Impact of Organizational Capabilities on The Internationalization Success: An Empirical Study on IT Offshoring
@INPROCEEDINGS{10.4108/eai.7-10-2021.2316224, author={Yogi Yusuf Wibisono}, title={The Impact of Organizational Capabilities on The Internationalization Success: An Empirical Study on IT Offshoring}, proceedings={Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2022}, month={4}, keywords={internationalization it organizational capabilities resource-based view}, doi={10.4108/eai.7-10-2021.2316224} }- Yogi Yusuf Wibisono
Year: 2022
The Impact of Organizational Capabilities on The Internationalization Success: An Empirical Study on IT Offshoring
ICEBE
EAI
DOI: 10.4108/eai.7-10-2021.2316224
Abstract
This study is intended to comprehend the role of organizational capabilities namely internal-related, contextual-related, and relationship capabilities in attaining the offshore IT outsourcing success. The model that described the relationship between capabilities and outsourcing success was developed and tested empirically. A field survey was conducted by distributing questionnaires to Indonesian IT providers that yielded 62 valid responses. The data were used to examine the measurement and structural model by using PLS-SEM technique. Internal-related capabilities that encompass industry mastery and staffing, as well as relationship capabilities that consist of information exchange, coordination, and participation have a direct positive impact on outsourcing success. Meanwhile contextual capabilities i.e., managing the cultural and temporal difference influence outsourcing success through relationship capabilities. The study gives theoretical contribution on the internationalization theory, that is, the role of capabilities in managing the tangible and intangible resources in achieving offshore IT outsourcing success.