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Author: | Parmigiani, A. Mitchell, W. |
Title: | The hollow corporation revisited: Can governance mechanisms substitute for technical expertise in managing buyer-supplier relationships? |
Journal: | European management review
2010 : VOL. 7:1, p. 46-70 |
Index terms: | supply purchasing technology management resources |
Freeterms: | resource-based view |
Language: | eng |
Abstract: | The study examines how a firm's system of exchange skills including internal technical expertise and supplier governance mechanisms influence supplier performance. The main question is whether inter-firm governance mechanisms can substitute for a firm's internal technical skills in maintaining supplier performance or whether a firm risks hollowing itself out by de-emphasizing internal expertise when outsourcing. Internal technical expertise influences multiple dimensions of supplier performance, e.g. cooperation, price and quality. Relational governance also affects supplier performance in a more focused way. Firms generate superior supplier performance if they retain internal technical skills as well as increase their use of external governance mechanisms to manage buyer-supplier relationships. |
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