The effect of task conflict on outsourcers’ long-term orientation toward suppliers: the moderating role of formal control and Chinese guanxi

Abstract

Purpose This paper aims to investigate the antecedents of manufacturing firms’ long-term orientation towards their suppliers in the context of outsourcing relationships in China. Design/methodology/approach Based on survey data collected from 224 manufacturing firms in China, this study examines the hypothesized relationships. Findings The results show that task conflict has a negative effect on long-term orientation, both Chinese guanxi and formal control are useful governance mechanisms to enhance long-term orientation, and the negative effect of task conflict on the long-term orientation weakens as Chinese guanxi between a manufacturer and its supplier increases. Originality/value This study contributes to a better understanding of conflict management in outsourcing relationships in China.