Les Cahiers de Recherche - HEC Paris
A comparative Test of the Efficiency, focus and Learning Perspectives of Outsourcing
(), DRAGONETTI Nicola C.
() and COOL Karel
Abstract: Despite the fact that vertical integration has been a key
question of management studies for more than fifty years, we still do not
have a unified, coherent view of outsourcing. In particular, multiple
theoretical perspectives such as transaction cost economics, industrial
organization, and strategy, could explain the outsourcing decision, but the
implications of these different streams have neither been theoretically
integrated, nor tested simultaneously. In an attempt to disentangle the
various causes of outsourcing, we suggest three different rationales for
outsourcing: cost reduction, focusing on core capabilities and importing
knowledge into the firm. We develop several hypotheses, which we then test
on secondary data on French small- and medium-sized enterprises. Results
indicate that the learning rationale appears to be the strongest factor
influencing the outsourcing decision. Some performance implications of this
rationale are also suggested and tested.
Keywords: outsourcing; transaction cost economics; resource-based view; knowledge-based view; (follow links to similar papers)
JEL-Codes: M10; M11; (follow links to similar papers)
28 pages, January 28, 2003
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