The dual role of penalty: The effects of IT outsourcing contract framing on knowledge-sharing willingness and commitment

Adding to the collective knowledge on how to craft effective IT outsourcing contracts, this study examines the effects of service level agreement (SLA) framing in terms of bonus versus penalty clauses on two important factors of outsourcing success: service providers' knowledge-sharing willingness and commitment (effort-related vs. affective). Results from an experiment with 198 IT professionals and novices show that penalty framing decreases...