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2015/2016  KAN-CCMVV1693U  Outsourcing and Supplier Relationships - CANCELLED

English Title
Outsourcing and Supplier Relationships - CANCELLED

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Start time of the course First Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 80
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Kim Sundtoft Hald - Department of Operations Management (OM)
Kontaktinformation: https:/​/​e-campus.dk/​studium/​kontakt eller Contact information: https:/​/​e-campus.dk/​studium/​kontakt
Main academic disciplines
  • Globalization and international business
  • Marketing
  • Supply chain management and logistics
Last updated on 24-03-2015
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Motivate and formulate a specific research question, of value to the research community and to practitioners that addresses one or more aspects of outsourcing decision making, relationship dynamics and/or performance management of supplier relationships or outsourcing.
  • Perform a literature review that provides overview of the existing body of literature of relevance to the research question.
  • Explain the research strategy and the methodological approach.
  • Discuss and apply over 50% of the theories/models included in the curriculum to analyse the formulated research question using either a conceptual approach or a case-based method.
  • Draw conclusions from the analysis that links back to the research question.
  • Communicate clearly the implications of the findings for theory and practice.
  • Reflect on the limitations of the study.
Course prerequisites
Master level students
Examination
Individual Project:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual
Size of written product Max. 10 pages
Assignment type Scientific paper
Duration Written product to be submitted on specified date and time.
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Autumn and Autumn, Week 44
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure

It is the aim of the course to provide students a comprehensive view of the managerial process starting with the outsourcing decision and continuing with the initiation, development and control of supplier relationships.
The course takes a buyer centric view and discusses the managerial dilemmas involved in making outsourcing decisions and managing their effects. When outsourcing takes place, relationships are formed with suppliers. This bears relevance for all firms and all industries. One central question is how such relationships can be managed in a network in order for the buying firm to sustain and develop the value expected from outsourcing.
Outsourcing decision making and supplier relationship management are complex issues. This implies that a multitude of subjects are included in the course. They are structured in three broad themes.
One theme will provide a context of outsourcing decision making and network management. Outsourcing decision making theories and models will be introduced and applied on specific case situation. Another theme will define and conceptualize supplier relationships and how they might create value or cost for the buying organization. Central relationship dynamics such as trust, dependence, value and attractiveness will be discussed and linked to models, theories and case-studies. A third theme will discuss performance management implications of outsourcing and supplier relationships. Central effects and implications of outsourcing will be assessed and discussed. Supplier control, development and evaluation practices as well as cost management in supplier relationships will be discussed.

Teaching methods
Extensive preparation before class by students, lectures, student presentations, and in depth case-discussions/​workshops. The use of a discussion oriented teaching style and extensive use of cases will assure a high level of student involvement in the learning process.
Further Information

Changes in course schedule may occur
Wednesday 08.00-11.30, week 38-41
Friday 08.00-11.30, week 38-40
Friday 08.00-12.25, week 41

Expected literature
  1. McIvor, R. (2009). How the transaction cost and resource-based theories of the firm inform outsourcing evaluation. Journal of Operations Management, 27, pp. 45–63.
  2. Holcomb, T.R. & Hitt, M.A. (2007). Toward a model of strategic outsourcing. Journal of Operations Management, 25, pp. 464-481.
  3. Berggren, C. & Bengtsson, L. (2004). Rethinking Outsourcing in Manufacturing: A Tale of Two Telecom Firms. European Management Journal, 22(2), pp. 211-223.
  4. Weber, M., Hiete, M., Lauer, L., & Rentz, O. (2010). Low cost country sourcing and its effects on the total cost of ownership structure for a medical devices manufacturer. Journal of Purchasing & Supply Management, 16, pp. 4–16.
  5. Horn, P., Schiele, H., & Werner, W. (2013). The “ugly twins”: Failed low-wage-country sourcing projects and their expensive replacements. Journal of Purchasing & Supply Management, 19(1), pp. 27-38.
  6. Dwyer, F., Schurr, P. H., & Oh, S. (1987). Developing Buyer-Seller Relationships. Journal of Marketing, 51(2), pp. 11-27.
  7. Wilson, D.T. (1995). An Integrated Model of Buyer-Seller Relationships. Journal of the Academy of Marketing Science, 23(4), pp. 335-345.
  8. Cox, A. (2001). Understanding Buyer and Supplier Power: A Framework for Procurement and Supply Competence, Journal of Supply Chain Management, 37(2), pp. 8-15.
  9. Choi, T.Y. and Wu, Z. (2009). Triads in Supply Networks: Theorizing Buyer-Supplier-Supplier Relationships, Journal of Supply Chain Management, 45(1), pp. 8-25.
  10. Ulaga, W. (2003). Capturing value creation in business relationships: A customer perspective. Industrial Marketing Management, 32(8), pp. 677-693.
  11. Hogan, J.E., (2001). Expected Relationship Value. Industrial Marketing Management, 30(4), pp. 339-351.
  12. Teng, S. G. and Jaramillo, H. (2005). A model for evaluation and selection of suppliers in global textile and apparel supply chains. International Journal of Physical Distribution & Logistics Management, 35(7), pp. 503-523.
  13. Giannakis, M. (2007). Performance measurement of supplier relationships. Supply Chain Management: An International Journal, 12(6), pp. 400-411.
  14. Hald, K.S. and Ellegaard, C.E. (2011). Supplier evaluation processes – The shaping and re-shaping of supplier performance. International Journal of Operations and Production Management, 31(8), pp. 888-910.
  15. Ezzamel, M., Willmott, H., & Worthington, F. (2004). Accounting and management–labour relations: the politics of production in the ‘factory with a problem’. Accounting, Organizations & Society, 29(3/4), pp. 269–302.
  16. Preston, A. (1986). Interactions and arrangements in the process of informing. Accounting, Organizations & Society, 11(6), pp. 521-540.
  17. Latour, B. (2003). Is Re-modernization Occurring - And If So, How to Prove It? A Commentary on Ulrich Beck. Theory, culture & society, 20(2), pp. 35-48.
  18. Christiansen, P.E. and Maltz, A. (2002). Becoming An “Interesting” Customer: Procurement Strategies for Buyers without Leverage. International Journal of Logistics: Research and Applications, 5(2), pp. 177-195.
  19. Hald, K.S., Cordon, C. and Vollmann, T.E. (2009). Towards an understanding of attraction in buyer–supplier relationships. Industrial Marketing Management, 38, pp. 960-970
  20. Ellegaard, C., Vollmann, T., & Cordon, C. (2002). Freqon – Buyer-Supplier Evolution?, IMD – International Institute for Management Development, Lausanne, Switzerland, pp. 1-13. (Case)
  21. Krause, D.R., Handfield, R.B. & Scannell, T.V. (1998). An empirical investigation of supplier development: reactive and strategic processes. Journal of Operations Management, 17, pp. 39–58.
  22. Liker, J.K. and Choi, T.Y. (2004). Building Deep Supplier Relationships, Harvard Business Review, December, pp. 104-113.
Last updated on 24-03-2015