Managing Vendor’s Project Uncertainty: A Cross-Levels Study on Roles of Organizational Learning and Entrepreneurial Orientation

Received:October 16, 2017  Revised:October 16, 2017

Key Words:  Offshore outsourcing; Project uncertainty; Organizational learning; Entrepreneurial orientation

Author NameAffiliation
Jia Pan* School of Management, Xi’an Jiaotong University 
Yi Liu Antai College of Economics & Management, Shanghai Jiao Tong University 
Liang Wang China Europe International Business School 

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Abstract:
      This study examines how organizational learning (explorative learning and exploitative learning) and project uncertainties (project volatility and project complexity) interact to affect the performance of offshore outsourced projects from vendor’s perspective, and how entrepreneurial orientation moderates such interaction effects. We collected empirical data from 235 offshore outsourced projects nested within 133 vendors in China, and use hierarchical linear modeling (HLM) to conduct a cross-level analysis. The result shows that, project volatility and project complexity both have negative effect on project performance; The impact of exploitative learning on mitigating the negative effect of project volatility on project performance is greater than that of explorative learning; In contrast, the impact of explorative learning on mitigating the impediment of project complexity on project performance is greater than that of exploitative learning. Further, entrepreneurial orientation has differentiated moderating effects on the relationship between each specific uncertainty-learning combination and project performance.

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