Classifying service triads to gain strategic insight

Service triads refer to triadic relationships where a client firm (buying organization) outsources its service delivery to a third party supplier (vendor) who directly serves the client’s customer. Given the vast diversity of service triads, a one-size-fits-all approach of studying them is ineffective. Accordingly, the purpose of this study is to classify them into logical groupings such that commonalities in managerial issues can be identified and knowledge transfer can occur across industries. We identify attributes to classify service triads based on a theoretically informed qualitative study involving managers from a wide spectrum of service experiences. Further, a client-focused dilemma matrix is proposed to explicate the critical decision challenges that the client firm faces in triadic relationships. The study provides insights into strategic decision-making, which are presented as propositions and recommendations.