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Outsourcing relationships: Changes in power and dependency

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  • Hansen, Zaza Nadja Lee
  • Rasmussen, Lauge Baungaard

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.

Suggested Citation

  • Hansen, Zaza Nadja Lee & Rasmussen, Lauge Baungaard, 2013. "Outsourcing relationships: Changes in power and dependency," European Management Journal, Elsevier, vol. 31(6), pages 655-667.
    • Handle: RePEc:eee:eurman:v:31:y:2013:i:6:p:655-667
    DOI: 10.1016/j.emj.2013.04.009
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    References listed on IDEAS

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    1. Javalgi, Rajshekhar (Raj) G. & Dixit, Ashutosh & Scherer, Robert F., 2009. "Outsourcing to emerging markets: Theoretical perspectives and policy implications," Journal of International Management, Elsevier, vol. 15(2), pages 156-168, June.
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    3. Peter Maskell & Torben Pedersen & Bent Petersen & Jens Dick-Nielsen, 2007. "Learning Paths to Offshore Outsourcing: From Cost Reduction to Knowledge Seeking," Industry and Innovation, Taylor & Francis Journals, vol. 14(3), pages 239-257.
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    5. Caniëls, Marjolein C.J. & Roeleveld, Adriaan, 2009. "Power and dependence perspectives on outsourcing decisions," European Management Journal, Elsevier, vol. 27(6), pages 402-417, December.
    6. Jane, Joan & Lago, Alejandro & Ariño, Africa, 2005. "Measuring the performance of international logistics outsourcing partnerships: A dyadic perspective analysis," IESE Research Papers D/608, IESE Business School.
    7. Andrew Cox & Chris Lonsdale & Joe Sanderson & Glyn Watson, 2004. "Business Relationships for Competitive Advantage," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-50919-1, May.
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    Cited by:

    1. Börjeson, Love, 2015. "Interorganizational situations – An explorative typology," European Management Journal, Elsevier, vol. 33(3), pages 191-200.

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