Advances in digital technologies, such as smart sensors, force public and private
organisations to develop their information processing capabilities. Outsourcing increases
organisations’ dependence on partners for information required for decision-making,
making inter-organisational governance (i.e. contractual and relational mechanisms) an
important lever for organisational information processing. We theoretically ground and
empirically validate how inter-organisational governance helps to address information
asymmetry that arises when capturing information using digital technologies. Using
Organisational Information Processing Theory as our theoretical lens, we conduct four
in-depth cases in the Dutch infrastructure sector. We provide evidence on the importance
of fit between information processing requirements and governance mechanisms
employed