Thus far I have taken a rather static approach to the negative curvilinear argument, more or less neglecting whether shifts of the curve are feasible, horizontally, vertically, or in the steepness of the curve, and whether and how such shifts are firm-specific. This chapter deals with vertical shifts, while chapter 6 will tackle horizontal shifts and changes in the steepness of the curve. Here the focus is on differences between firms, especially why one firm's curve may be located higher than that of another firm. The central question is therefore how firms manage to achieve a transition as shown by arrow C in figure 3.2. So what is discussed here is how a firm may raise its constant c. This also implies that the performance aspects discussed in this chapter do not relate directly to the outsourcing level as such, unlike the previous or next chapters. Of course, firms only have some influence over constant c, as some part of a firm's performance will be predetermined by variables such as market conditions. Furthermore, only a part of the influence firms have over constant c is discussed here. The first part of this chapter will read much like a standard strategic management treatise on performance differentials. Then the focus will be on more detail on how interorganizational relations, specifically buyer–supplier relations in the case of outsourcing, can be a source of sustained competitive advantage.