Outsourcing relationships: Changes in power and dependency

Zaza Nadja Lee Hansen, Lauge Baungaard Rasmussen

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    Abstract

    Recent research has shown that it is important for companies to correctly reflect the power and (inter)dependency to vendors so that an appropriate and aligned relationship can be created. Power and dependency, however, can change over time, which means that the vendor strategy necessary for the relationship to remain aligned and appropriate must also change. Through an empirical dyadic investigation of a large multinational corporation and three of its vendors the key-determinants related to changes in outsourcing relationships are investigated. This dyadic study shows that companies need to consider three aspects additional to those mentioned in previous research when selecting a vendor strategy: (1) Vendor expectations, (2) Vendor potential, and (3) Long-term relationship goal.
    © 2013 Elsevier Ltd. All rights reserved.
    Original languageEnglish
    JournalEuropean Management Journal
    Volume31
    Issue number6
    Pages (from-to)655-667
    ISSN0263-2373
    DOIs
    Publication statusPublished - 2013

    Keywords

    • Power
    • Outsourcing
    • Dependency
    • Supplier relationship
    • Vendor relationship
    • Vendor aspirations

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