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Exploring the Impact of Team based Reward on Project Performance in Outsourced System Development

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  • Neeraj Parolia

    (Department of eBusiness and Technology Management, Towson University, Towson, MD, USA)

  • Gary Klein

    (College of Business and Administration, University of Colorado, Colorado Springs, CO, USA)

  • James J. Jiang

    (Research School of Business & School of Accounting and Business Information Systems, ANU College of Business and Economics, The Australian National University, Canberra, ACT, Australia)

Abstract

Outsourcing system development to international information technology vendors working in project teams can notably facilitate the successful implementation of client information system development (ISD) projects. Reward structures in such culturally different environments, however, are not well defined or understood. The authors examined the effects of team performance based reward structures on ISD project performance. A total of 194 responses were solicited, obtained, and analyzed. The results indicated that reward based on team performance can improve the level of task cohesion which in turn facilitates increased information utilization. Both task cohesion and information utilization enhance project performance. Directions for management practice and future research are discussed.

Suggested Citation

  • Neeraj Parolia & Gary Klein & James J. Jiang, 2013. "Exploring the Impact of Team based Reward on Project Performance in Outsourced System Development," International Journal of Information Technology Project Management (IJITPM), IGI Global, vol. 4(4), pages 82-92, October.
    • Handle: RePEc:igg:jitpm0:v:4:y:2013:i:4:p:82-92
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