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Safeguarding subcontractors in a co-opetitive outsourcing context: the competitive dynamics perspective

Author

Listed:
  • Yu-Ching Chiao
  • Keng-Hsiang Cheng
  • Ville Isoherranen
  • Tzong-Ru Lee
  • Nirote Sinnarong
  • Yi-Hsiang Huang

Abstract

The purpose of this study was to examine the co-opetitive relationship between a focal firm and its subcontractors. We used the new developing concept of safeguarding tension to understand the antecedent and consequence relationship of the focal firm, while its subcontractors presented somehow competitive threats. Using the awareness-motivation-capability (AMC) perspective, an integrated research model was developed. With the fine-grained measures in terms of previous literature and case interviews, this study gathered 101 outsourcing samples of 17 focal firms to test the proposed hypotheses by the hierarchical regression. The evidence shows that if a subcontractor has higher levels of organisational characteristics, competitive motivations, and absorptive capabilities, it will cause the focal firm's safeguarding tension to increase. Furthermore, when a focal firm perceives higher safeguarding tension, it will exhibit higher levels of safeguarding aggressiveness. The results of this research explain safeguarding tension and its related concepts, as well as filling in gaps in the co-opetition and subcontractor management literature. It also provides a direction for how to best manage the relationship with subcontractors.

Suggested Citation

  • Yu-Ching Chiao & Keng-Hsiang Cheng & Ville Isoherranen & Tzong-Ru Lee & Nirote Sinnarong & Yi-Hsiang Huang, 2025. "Safeguarding subcontractors in a co-opetitive outsourcing context: the competitive dynamics perspective," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 52(3), pages 287-307.
    • Handle: RePEc:ids:ijlsma:v:52:y:2025:i:3:p:287-307
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