Typology and Success Factors of Collaboration for Sustainable Growth in the IT Service Industry

Abstract

Recently, innovative changes in information technology (IT) trends, such as cloud computing and deep learning, have led IT companies to focus on collaboration for sustainable growth. This paper investigates collaboration strategies and success factors for IT service companies via a survey-based empirical study of Korean leading IT firms. Four types of collaboration were identified by considering the types of customer relationship and the target market: offshore, joint venture, collaboration with small and medium-sized enterprises (SMEs), and partnership with major local firms. Then, based on a Plan-Do-See management activity process, this paper considers success factors in the planning process and collaboration process, and analyzes an impact of these factors on collaboration performance such as financial performance, process innovation, improving competitiveness, and technology acquisition. As a result, the success factors differ according to the types of performance measures as well as the collaboration types. In particular, the characteristics of partners positively influence competitiveness in captive and global markets, while they improve process innovation in open and domestic markets. This study attempts to provide insight for companies in the IT service industry about how collaboration activities could enhance performance, depending on the alliance types.