Examining motivation of IT vendors to share knowledge with clients

To reduce information technology (IT) development costs, more firms have begun to outsource IT-related activities by partnering with IT vendors. As knowledge is a valuable asset in IT development, knowledge sharing between vendors and business clients becomes critical. However, the motivation behind IT vendors’ willingness to share knowledge with client firms is not sufficiently understood. To shed light on the nature of knowledge sharing within vendor–client partnerships, we examine the influence of performance feedback and managerial mindset on vendors’ motivation to share knowledge with their clients. We adopt a multi-method approach involving both a scenario-based field experiment with 164 vendor managers (Study 1) and a field survey of 112 vendor managers involved in IT development (Study 2). We find that when vendors’ performance exceeds their aspiration levels, they are motivated to share knowledge with clients. Such motivational effects are more pronounced for vendor managers exhibiting abstract mindsets. Our study is of significant value to researchers and practitioners, affording both groups a keener, deeper, and more robust appreciation for how knowledge sharing in vendor–client partnerships can be managed more effectively.