Quality, satisfaction and value in outsourcing: Role of relationship dynamics and proactive management

Abstract

Service Quality, Value and Satisfaction literature in the past have shown that quality drives satisfaction leading to loyalty and financial growth - both revenues and better profits. Recently Relationship Marketing, Information Systems and Service Science streams have focused on relationship factors. But the dynamic perspective of this interdisciplinary model has not been studied within business-to-business context. We show, based on a qualitative study of three large outsourcing accounts, how networked relationships between provider and client plays a crucial role in driving the dynamics of this model. At an operational level, relationship helps manage the expectations so that the client satisfaction levels can be sustained higher and create the opportunity for value proposition. When managed proactively, it helps facilitate value creation with the clients. At extended levels, it helps enhance client value perceptions. From a theoretical perspective, grounded theory from the cases suggests recursive dynamics between quality and satisfaction.