The Impact of Industrial Supplier-Manufacturer Relationship on Strategic Outsourcing Success
DOI:
https://doi.org/10.11113/jt.v74.3347Keywords:
Relational-oriented exchange, antecedent, outsourcing performance, dependence, communication behavior, trustAbstract
Outsourcing is generally recognized as a strategy for producing cost savings; however, by simply following a traditional cost-focused approach, industries may be missing opportunities to gain further competitive advantage. Similarly, poor outsourcing performance of manufacturing industry could be improved through relational-oriented exchanges and its antecedents. Researches that examine the link among relational-oriented exchanges and their antecedents; and outsourcing performances in the manufacturing industry is still in its early development stage. Owing to high competition and risks in a manufacturing environment, the present study aims at investigating the link between relational-oriented exchanges, the antecedent of relational-oriented exchanges and outsourcing performances. Data was collected from 224 electrical and electronic industries in Malaysia via a postal survey and analyzed by using statistical package for social science (SPSS) version 19. The result of the findings of the investigation revealed that dependence and communication behavior are significantly related to relational-oriented exchanges while trust is insignificant. And also, relational-oriented exchange is directly significant to outsourcing performances.
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