Explicating the mediating role of integrative supply management practices in strategic outsourcing: a case study analysis

In this paper, the role of integrative supply management practices (ISMP) in enabling higher performance in an outsourcing relationship is examined. It is hypothesised that ISMP plays a mediating role between the motivation to outsource and the success of the outsourcing relationship. Given the paucity of literature in outsourcing pertaining to the role of practices on improving the performance of an outsourcing engagement, multiple case studies of buyers and suppliers from manufacturing and service sectors were used in this study. Using a grounded theory approach, the mediating role of ISMP on outsourcing performance is explicated. Two distinct supply management practice types are identified: failure-prevention practices and performance-enhancing practices. We find that the intensity of implementation of these practices is contingent on the motivations of the firms to outsource. In addition, these two practice types play a role in determining performance outcomes in an outsourcing relationship. We propose a detailed conceptual model based on the analysis of case study data, provide testable propositions and discuss implications for theory and practice.