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Journal of Supply Chain Management

Locked-In to Supplier Dominance: On the Dangers of Asset Specificity for the Outsourcing Decision Members Only Content

The focus of this article is less on how buyer power resources can be augmented and more on how the balance of power in an exchange relationship can shift over time to favor the supplier. In particular, the article investigates the importance of asset specificity for buyer-supplier exchange relationships in outsourcing decisions. Particular emphasis is placed on the need for buyers to understand pre- and post-contractual risks.

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