Continuity in Partnerships The Importance of Alignment of Interest

Abstract

The study explores the challenges faced by companies in managing sourcing relationships within the context of globalization, where suppliers, customers, and partners are often located across various countries and regions. As businesses increasingly outsource functions to remain competitive, effective relationship management becomes crucial to ensure goal alignment and value delivery. The study aims to address the problem of misalignment in interests, commitments, and processes within these relationships. It emphasizes the importance of understanding misalignment and applying appropriate control mechanisms to maintain healthy partnerships. Through a case study, the research demonstrates that alignment in sourcing partnerships is a continuous process requiring ongoing effort, beginning from the precontractual phase and extending through frequent communication and relationship building. The findings highlight two main tracks of alignment: a proactive approach based on previous sourcing relationships and an ad-hoc alignment triggered by signals of performance issues. The study concludes that alignment largely occurs through effective communication and underscores the significant role of relationships in achieving alignment. The insights gained contribute to the development of practical guidelines for businesses to enhance their sourcing relationships and ensure long-term cooperation.

Date of Award	3 Sept 2024
Original language	English
Supervisor	Harry Martin (Examiner) & Pieter Kamminga (Co-assessor)