Using Agency Theory to Design Successful Outsourcing Relationships
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 1 July 2000
Abstract
Outsourcing affects thousands of companies and employees every year. Recent studies indicate that 85 per cent of all companies outsource at least one function generating billions of dollars in outsourcing contracts (ElmutiElute, KathwalaKithara & Monippallil, 1995). Transportation is one of outsourcing's biggest players. Many outsourcing attempts have proved unsuccessful and recent articles blame these failures on failed outsourcing relationships. This paper addresses these failed relationships and suggests two possible solutions to the problem. The first solution is to diagnose the relationship from both sides of the contract. The second suggestion is to engage agency theory to help design the types of contracts and relationships necessary to provide and support an environment of trust.
Keywords
Citation
Logan, M.S. (2000), "Using Agency Theory to Design Successful Outsourcing Relationships", The International Journal of Logistics Management, Vol. 11 No. 2, pp. 21-32. https://doi.org/10.1108/09574090010806137
Publisher
:MCB UP Ltd
Copyright © 2000, MCB UP Limited