Governing and orchestrating relationships in outsourcing with multiple vendors

Abstract

When managing multisourcing relationships, firms have to pay additional attention to guard the scope of services provided by each vendor and to orchestrate their activities to create synergies. However, tensions between the vendors may arise as their objectives might be conflicting and their relationship has a competitive nature. The aim of this research is to develop a better understanding of governance in multisourcing relationships. Data from a case study were collected and this multi-faced domain is studied by applying Coordination and Resource Dependency Theory. Our analysis identified that an inter-organizational governance structure is needed that includes governance mechanisms to decrease potential uncertainties and deal with the competitive nature. Specifically, a responsible entity (individual or team) at each party is required that develops a coherent strategic plan, monitors relationships, and enforces governance mechanisms.