Success factors between suppliers and customers in service outsourcing activities

Abstract

This study examines the relationship between outsourcing motives, supplier-customer relationship and perceived value in non-core service outsourcing. That is, key factors responsible for supplier-customer relationship which provide customer value in service outsourcing is still unclear. A total of 1,757 companies were randomly selected for the survey. 234 valid questionnaires were returned (13.4% response rate). The structural equation method was used to obtain the best fit model. The most significant contribution of this study is that, ‘relationship interaction’ has a greater impact on customer perceived value than ‘relationship quality’ in service outsourcing. That is, customer-supplier ‘relationship interaction’ that enhances communication, cooperation, coordination, conflict resolution, and integration activities rather than ‘relationship quality’ such as loyalty and trust, would exert the greatest effect on perceived customer value.