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The Post-Crisis Outsourcing Relationship: Building Institutional Trust, Technology and Regulatory Controls

  • Wendy CurrieEmail author
  • Daniel Gozman
Chapter
Part of the Progress in IS book series (PROIS)

Abstract

Following serious economic recession, government and industry attention on governance, risk and compliance has increased, causing a shift in institutional logics away from free markets towards enhanced supervision and regulation. This shift has created new regulatory institutions designed to enhance trust in transactions conducted through financial intermediaries on behalf of investors. The study explores how a major IT vendor implements an Investment Management System at eight global financial organizations over a 3 year period. The findings offer some interesting insights into the outsourcing relationship in building trust through regulatory controls for developing robust compliance practices both externally and internally. Our research finds, however, that dynamics of trust between investors, regulators and financial intermediaries may be undermined by persistent practices derived from pre-crisis institutional behaviours and logics.

Keywords

Institutional logics Institutional trust Institutional theory Great recession Change management Financial crisis Compliance Internal controls 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Audencia-PRES LUNAMAudencia School of ManagementNantesFrance
  2. 2.Henley Business SchoolLondon School of Economics and Political ScienceLondonUK

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