Methodology Fit in Offshoring Software Development Projects

Offshoring has become a viable alternative for companies to lower software development costs and leverage labor resources worldwide. To achieve success in offshoring software development projects, a vendor must choose appropriate development methodologies. This study aims to examine how methodology fit affects offshoring project performance. It proposes that methodology fit affects project performance through interfirm knowledge sharing between vendors and clients. In addition, the impact of methodology fit on knowledge sharing is dependent on relational capital between vendors and clients. A survey was conducted among software companies in China that provide offshoring services. 108 completed questionnaires were collected. The results confirm this article's hypotheses.