How to Govern Business Services Exchanges: Contractual and Relational Issues

22 Pages Posted: 27 Aug 2007

See all articles by Darline Vandaele

Darline Vandaele

affiliation not provided to SSRN

Deva Rangarajan

Ball State University

Paul Gemmel

affiliation not provided to SSRN

Annouk Lievens

affiliation not provided to SSRN

Abstract

With firms concentrating on core competencies, more emphasis has been placed on outsourcing and dealing with external sourcing agents. This has led to a stronger academic focus on buyer/seller exchanges and the corresponding mechanisms for governing these exchanges. This paper gives an overview of previous research investigating the exchange governance phenomenon based on transaction cost theory or co-operative inter-organizational relationships. The results reveal that few research studies have investigated the overall picture of exchange governance, including both contractual and relational governance and taking into account antecedents as well as performance outcomes of the governance mechanisms involved. Moreover, despite the service-dominant logic shift, limited attention is given to specific service characteristics and their impact on exchange governance. This paper attempts to meld economic and social related antecedents into a model with regard to exchange governance in business services settings. Contractual and relational governance issues and their impact on performance outcomes are also considered. The resulting model indicates that to govern business services exchanges efficiently, more emphasis should be placed on behavioral uncertainty, human and process asset specificity and contractual governance. The paper concludes by discussing several directions for future research.

Suggested Citation

Vandaele, Darline and Rangarajan, Deva and Gemmel, Paul and Lievens, Annouk, How to Govern Business Services Exchanges: Contractual and Relational Issues. International Journal of Management Reviews, Vol. 9, Issue 3, pp. 237-258, September 2007. Available at SSRN: https://ssrn.com/abstract=1008983 or http://dx.doi.org/10.1111/j.1468-2370.2007.00212.x

Darline Vandaele (Contact Author)

affiliation not provided to SSRN

No Address Available

Deva Rangarajan

Ball State University

Muncie, IN 47306-0340
United States

Paul Gemmel

affiliation not provided to SSRN

No Address Available

Annouk Lievens

affiliation not provided to SSRN

No Address Available

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