LIOLIOU, E. ... et al., 2014. Formal and relational governance in IT outsourcing: substitution, complementarity and the role of the psychological contract. Information Systems Journal, 24 (6), pp.503-535.
This study aims to contribute to the literature on IT outsourcing governance
by advancing our understanding of mechanisms of substitution and complementarity
between formal and relational governance. Our study illustrates certain conditions
under which substitution and complementarity can occur and depicts a two-way
causal relationship between them. Our examination further provides a more indepth
assessment of relational governance by using the concept of the psychological
contract. Our results demonstrate that the psychologically binding nature of the psychological
contract makes it a particularly forceful substitute to formal governance,
while its associations with other relationship aspects make it a forceful complement.