Client strategies in vendor transition: A threat balancing perspective

  • Authors:

  • Cecil Eng Huang Chua;Wee-Kiat Lim;Christina Soh;Siew Kien Sia

  • Affiliations:

  • University of Auckland Business School, University of Auckland, Private Bag 92019, Auckland 1142, New Zealand;Department of Sociology, University of Colorado at Boulder, UCB 327, Boulder, CO 80309, United States;Nanyang Business School, Nanyang Technological University, Nanyang Avenue, Singapore 639798, Singapore;Nanyang Business School, Nanyang Technological University, Nanyang Avenue, Singapore 639798, Singapore

  • Venue:
  • The Journal of Strategic Information Systems
  • Year:
  • 2012

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Abstract

Many outsourcing contracts are expiring, and vendor transition is an increasing concern. This paper attempts to develop guidelines for vendor transition by applying balance of threat theory, which suggests a client organization should pursue either a ''soft'' or ''hard'' balancing strategy, depending on the outgoing vendor's capability and aggressive intent to disrupt client operations. Balance of threat theory is explored across two contrasting case sites. In addition to demonstrating the relevance of balance of threat theory, the cases identify specific tactics associated with hard and soft balancing, as well as key areas of conflict in vendor transition.