Strategic Intent, Contract Duration, and Performance: Evidence from Micro-Outsourcing

Micro-outsourcing is the process of sourcing work to smaller firms or individuals using online sites. Several websites provide a platform to match clients and vendors for sourcing jobs. A typical issue with micro-sourcing is information asymmetry regarding the actual expertise of vendors. Online platforms bridge this gap using vendors’ prior histories and client evaluations. In this study, we examine how the strategic intents of vendors as captured by the platform play a moderating role on the relationship between project contract duration and client evaluation of vendor performance. Our empirical analysis uses project level data of over 6000 completed micro-outsourcing IT projects obtained from a leading micro-sourcing IT platform. We find that competency-focused strategic intent and goal-focused strategic intent positively moderate the relationship between project contract duration and client evaluation of vendor performance; whereas cost-focused strategic intent negatively moderates this relationship. Contributions and implications for research and practice are discussed.