This paper aims to examine the impact of goal compatibility on value co-creation in a retailer–manufacturer outsourcing relationship. This paper also examines whether power balance, information symmetry and duration of engagement influence the above causal relationship.
The study used a structured questionnaire to test the relationship between goal compatibility and value co-creation through power balance and information symmetry, along with the moderating role of duration of the engagement. The instrument was administered to 230 top and senior management representatives from manufacturing firms located in 11 major Indian industrial cities.
Goal compatibility is significantly related to value co-creation. The results had also shown that power balance and information symmetry mediated the relationship between goal compatibility and value co-creation.
Future researchers should examine these complex phenomena across more diverse industries and settings to enhance generalizability. Data should be gathered from both side of the channel dyad. Data should be also collected longitudinally to extend the current cross-sectional design.
Understanding the association between goal compatibility and value co-creation, with mediating and moderating factors can provide useful information to strengthen the inter-organizational relationship with maximizing mutual benefits.
This research offers new insights into the links between goal compatibility and value co-creation. The retailers engaged in outsourcing can use these value drivers to understand their manufacturer and their respective priorities for value co-creation.
