How Management Actions Affect Social Exchanges in Outsourcing Relationships

This paper explores the effect of management actions on social exchanges in outsourcing relationships. Social exchanges between individuals constitute relationship quality between client and vendor, which is an important factor of outsourcing success. Based on the interaction approach, we develop a framework for management actions entailing three dimensions: the exchange targeted, the organization targeted and the effect on social exchanges. We apply the framework to studying a comprehensive case of an outsourcing relationship full of conflict. This proof-of-concept shows that it is vital to consider side effects of management actions on social exchanges as they indirectly influence outsourcing success.