Work

Offshore or Not? An Transaction Cost Economics Analysis

Year: 2006

Type: article

Abstract: Transaction Cost Economics (TCE) theory is widely used to explain the appropriate governance structure for make-or-buy decisions.We adopt this theory to analyze firms' decisions and choices about offshore outsourcing, domestic outsourcing and internal procurement.The main findings of this paper are as follows: When asset specificity is low, offshore outsourcing is preferable.As asset specificity increases, firms start favoring domestic outsourcing.When asset specificity becomes very high, firms would rather produce it internally.

Source: Journal of the Association for Information Systems

Authors: Jessica Pu, Rajiv Kishore

Institution: University at Buffalo, State University of New York

Language: English

Topic: Outsourcing and Supply Chain Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W1497584768

FWCI: 1.598

Cites: 27

Cited by: 4

Related to: 10