How contracts and trust influence innovation in inter-organizational relationships: A necessary condition analysis

W. van der Valk, R. Sumo, J. Dul

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Abstract

Purpose
– The paper aims to empirically validate a recently developed typology to demonstrate that services that are similar in terms of technical content, but different with regard to how they are used by the buying company, require different buyer-supplier interaction processes.

Design/methodology/approach
– The paper conducts an embedded case study based on dyadic data collection to investigate the purchase of cleaning services by Netherlands Railways (NS) from two suppliers. These services differ with regard to how they are used by NS: as part of the value-proposition to customers (train and station cleaning) or as part of the support processes for NS (office cleaning).

Findings
– The paper finds that for a technically homogenous service, fundamental differences in required interaction arise as a result of different usage situations. These differences are reflected in the sourcing decision and the design of the service delivery management process.

Research limitations/implications
– Besides the general limits of single case studies regarding external validity, a specific limitation of the study is the limited number of supplier interviews conducted.

Practical implications
– In order to develop appropriate sourcing and service delivery management strategies, practitioners need to consider the use of the service purchased and how it relates to their value proposition. This research shows that pooling volume for services that are used differently may enable immediate price reduction but could reduce supplier performance and ultimately customer satisfaction.

Originality/value
– The case study and the validated typology complement the limited literature on the procurement of services transferred to the next level of customers in the supply chain.
Original languageEnglish
Title of host publicationProceedings of the 23rd International Purchasing and Supply Education and Research Association Conference (IPSERA 2014)
Subtitle of host publicationPurchasing and Supply Management in Difficult Times: The Sky is the Limit
EditorsH. Badenhorst, et al.
Place of PublicationPretoria
Pages1-20
Publication statusPublished - Apr 2014
Event23rd International Purchasing and Supply Education and Research Association Conference (IPSERA 2014) - Legend Golf and Safari Resort, Pretoria, South Africa
Duration: 13 Apr 201416 Apr 2014

Conference

Conference23rd International Purchasing and Supply Education and Research Association Conference (IPSERA 2014)
Abbreviated titleIPSERA 2014
CountrySouth Africa
CityPretoria
Period13/04/1416/04/14

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