The supplier's side of outsourcing: Taking over activities and blurring organizational boundaries

• Type: Article in International Scientific Journal
• Date: 2014

Authors

Baraldi, E (Author) Other; Proenca, JF (Author) Other; Teresa Proença (Author) FEP; de Castro, LM (Author) Other

Journal

Title: Industrial Marketing Management

Vol. 43

Pages: 553-563

ISSN: 0019-8501

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 48 Citations

Scopus - 47 Citations

Other information

Authenticus ID: P-009-GWE

DOI: 10.1016/j.indmarman.2014.02.012

Abstract (EN): Since most of the literature on outsourcing focuses only to the buying (outsourcing) company, this paper aims to highlight the supplier's side from a relational perspective. The paper stresses the importance of business relationships between suppliers of outsourced activities and their customers. The paper's purpose is specified in two research questions: (1) how is value created within outsourcing and (2) how does the supplier interact with the outsourcing company? Our method relies on an in-depth qualitative case study of Logoplaste, a Portuguese packaging company which supplies large consumer goods manufacturers through complex outsourcing activities. Our analysis identifies three key dimensions of outsourcing relationships: (1) value co-creation via inter-firm coordination (as opposed to unilateral externalization of activities); (2) mutual dependence between supplier and customer due to the supplier's taking over activities; and (3) the blurring of organizational boundaries because of mutual dependence. These dimensions manifest themselves, even though in different degrees, after the initiation of any outsourcing relationship: these variables are new to the literature on outsourcing, which focuses on the ex ante dimensions that influence the customer's pre-relational choices such as "make or buy" and relationship type.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 11