Aubert, Benoit A.Patry, MichelRivard, Suzanne2018-01-162018-01-1620032003https://dl.gi.de/handle/20.500.12116/12348This study analyzes two extreme outsourcing situations. In the first case, contractual problems derailed the original agreement and precipitated a disastrous divorce. In the second case, the strategic alliance between the firm and its suppliers was supported by governance mechanisms that paved the way to a successful and harmonious relationship. Agency theory provides a conceptual background for analyzing the cases. Lessons are drawn from the experiences of the firms studied, and recommendations are made for the design of outsourcing contracts that curb contractual opportunism.agency theoryincentive contractsoutsourcingText/Journal Article1861-8936