Power, resource dependencies and capabilities in intercultural B2B relationships

Abstract

Purpose This exploratory study aims to analyse the influence of organisational resources and capabilities on relationship quality and firm performance in the context of high-technology offshore outsourcing service vendors. Design/methodology/approach Using a qualitative case study design, data from four offshore business process and information technology outsourcing firms were analysed. Findings Findings highlight that resource dependence, cultural orientation and the vendor’s resources and capabilities strengthen relationship quality and affect firm performance. Originality/value The distinctive contribution of this study lies in identifying key organisational mechanisms that improve relationship quality and firm performance, as well as help to understand the adverse effects of ethnocentricity and power faced by vendors and subsidiaries within diverse intercultural contexts. Study limitations and future research directions, along with implications for theory and practice, are also discussed.