Abstract

Purpose: The purpose of study is to provide better understanding of alignment of business-to-business (B2B) relationships and to explore it empirically within a dyadic supply chain outsourcing relationship in heavy machine manufacturing industry.

Design/methodology/approach: The critical realism perspective has been used. Study has case-study design. Qualitative empirical research methodology is adopted. Analysis is based on abductive logic. Semi-structured interviews are used to collect data from two Finnish companies.

Findings: To align B2B outsourcing relationship, a service provider continuously manipulates various heterogeneous resources in its resource portfolio to match the supply chain needs of an outsourcer. Within make/assemble-to-order supply chain structure, coordination and organizational culture are among few mechanisms that help service provider achieve better supply chain performance in dyadic context.

Research limitations/implications: Single heavy machine assembly service provider is used with limited respondents. Findings should be generalized with care. The context of study is limited to manufacturing industry. Similar studies can be carried out in other contexts.

Practical implications: This study provides guidance to managers on the resource portfolio based alignment of outsourcing relationships that affects resource management and supply chain performance of an assembly service provider.

Original/value: This study is connected with the existing knowledge and expands it by providing a better understanding of alignment of B2B outsourcing relationships. It also provides insights on mechanisms that help achieve better supply chain performance in dyadic context. This study contributes to supply chain management and strategic management literature.