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Influence of Relational-Oriented Exchange on Outsourcing Success in Supplier-Manufacturer Relationships: A Financial Performance Perspective

Mohamad Ghozali Hassan, Abdul Aziz Othman, and Mohd Azril Ismail
School of Technology Management and Logistics, Universiti Utara Malaysia, Kedah, Malaysia
Abstract—The role of relational-oriented exchange is an important concern of competitiveness sustainability in developing an outsourcing company. Analyzing the influence of relational-oriented exchange on the financial performance of outsourcing success enables greater business value over time. This paper aims to study the relational-oriented exchange in terms of structural and process dimensions improving the outsourcing performance among manufacturing industries. An empirical study was applying partial least square and structural equation modelling using responses from a sample list of all electric and electronic manufacturing industries in Malaysia. This is done with the help of a statistical tool, SmartPLS as a new quantitative research demonstrated to support the positive relationship between relational-oriented exchange and outsourcing success from a financial performance perspective.

Index Terms—outsourcing success, relational-oriented exchange, financial performance, electric and electronic manufacturing industries, SmartPLS, PLS-SEM

Cite: Mohamad Ghozali Hassan, Abdul Aziz Othman, and Mohd Azril Ismail, "Influence of Relational-Oriented Exchange on Outsourcing Success in Supplier-Manufacturer Relationships: A Financial Performance Perspective," Journal of Advanced Management Science, Vol. 4, No. 5, pp. 415-419, September 2016. doi: 10.12720/joams.4.5.415-419
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