Offshore outsourcing of professional services: A transaction cost economics perspective

Journal of Operations Management

Volumn 26, Issue 2, 2008, Pages 148-163

  Ellram, Lisa M ^a   Tate, Wendy L ^b   Billington, Corey ^c  

^a Department of Ecosystem Science and Sustainability   (United States)

^b UNIVERSITY OF TENNESSEE   (United States)

^c IMD   (Switzerland)

Author keywords

Business process outsourcing; Case studies; Offshoring; Professional services; Service purchasing; Transaction costs

Indexed keywords

COST ACCOUNTING; ECONOMIC ANALYSIS; INFORMATION MANAGEMENT; RISK ANALYSIS;

BUSINESS PROCESS OUTSOURCING; PROFESSIONAL SERVICES; TRANSACTION COST ECONOMICS (TCE);

OUTSOURCING;

EID: 38949103697     PISSN: 02726963     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jom.2007.02.008     Document Type: Article

References (52)

1. Amaral J., Billington C., and Tsay A. Outsourcing production without losing control. Supply Chain Management Review November-December (2004) 44-52
2. Amaral J., Billington C., and Tsay A. Safeguarding the promise of production outsourcing. Interfaces 36 3 (2006) 220-233
3. Apte U., Mason M., and Richard O. Global disaggregation of information-intensive services. Management Science 41 7 (1995) 1250-1263
4. Arnold U. New dimensions of outsourcing: a combination of transaction cost economics and the core competencies concept. European Journal of Purchasing & Supply Management 6 1 (2000) 23-29
5. Auburt B.A., Rivard S., and Michel P. A transaction cost model of IT outsourcing. Information Management 41 7 (2004) 921-931
6. Bardhan A.D., and Kroll C.A. Competiveness and an emerging sector: the Russian software industry and its global linkages. Industry and Innovation 13 1 (2006) 65-95
7. Bardhan, A.D., Kroll, C.A., 2003. The new wave of outsourcing. Fisher Center for Real Estate Quarterly Report. http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1025&context=iber/fcreue (accessed: June 15, 2006).
8. Coase R.H. The nature of the firm. Economica 4 (1937) 386-405
9. Corbett, M.F., 2005. Trends to watch 2005. Fortune, March 21, p. B12.
10. Doig S., Ritter R., Speckhals K., and Woolson D. Has outsourcing gone too far?. McKinsey Quarterly 4 (2001) 25-37
11. Dyer J. Effective interfirm collaboration: how firms minimize transaction costs and maximize transaction value. Strategic Management Journal 18 August (7) (1997) 535-556
12. Eisenhardt K. Building theories from case study research. Academy of Management Review 14 4 (1989) 532-550
13. Farrell D. Beyond offshoring: assessing your company's global potential. Harvard Business Review December (2004) 1-11
14. Farrell D., and Agrawal V. Offshoring: is it a win-win game? (2003), McKinsey Global Institute, San Francisco, CA
15. Fine C. Clockspeed (1998), Perseus Press, Boston
16. Garner C.A. Offshoring in the service sector: economic impact and policy issues. Economic Review-Federal Reserve Bank of Kansas City, Third Quarter 89 3 (2004) 5-37
17. Grant R.M. Toward a knowledge-based theory of the firm. Strategic Management Journal 17 Winter (1996) 109-122 (special issue)
18. Kaufmann L., and Carter C. International supply relationships-determinants of non-financial performance. Journal of Operations Management 24 5 (2006) 653-675
19. Kher, A. 2005. Labor arbitrage is the clock ticking? Retrieved from Global Outsouring.org at http://www.globaloutsourcing.org/content/Business/2005/105120501.asp on 12/15/2005.
20. Klein B., Crawford R., and Alchian A. Vertical integration, appropriable rents, and the competitive contracting process. Journal of Law & Economics 21 October (1978) 297-326
21. Linderman K., Schroeder R., Zaheer S., Leidtke C., and Choo A. Integrating quality management with knowledge creation processes. Journal of Operations Management 22 6 (2004) 589-607
22. Maltz A. Outsourcing the warehousing function: economic and strategic considerations. Logistics and Transportation Review 30 3 (1994) 245-266
23. Masten S., Meehan J., and Snyder E. The costs of organization. Journal of Law, Economics & Organization 7 (1991) 1-25
24. McCarthy I., and Anagnostou A. The impact of outsourcing on the transaction costs and boundaries of manufacturing. International Journal of Production Economics 88 1 (2004) 61-71
25. McDougall P. Outsourcers fall short. Information Week November 22 1015 (2004) 44-55
26. Murray J., and Kotabe M. Sourcing strategies of U.S. services firms: a modified transaction cost analysis. Strategic Management Journal 20 9 (1999) 791-809
27. Narayanan, V.G., Raman, A., 2000. Aligning incentives for supply chain efficiency. Harvard Business School, Note 9-600-110. Retrieved from http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/viewFileNavBean.jhtml?_requestid=36333, on 12/13/2005.
28. Nonaka I. A dynamic theory of organizational knowledge creation. Organization Science 5 1 (1994) 14-37
29. Noordewier T., John G., and Nevin J. Performance outcomes of purchasing arrangements in industrial buyer-vendor relationship. Journal of Marketing 54 5 (1990) 80-93
30. Odagiri H. Transaction costs and capabilities as determinants of the R&D boundaries of the firm: a case study of the ten largest pharmaceutical firms in Japan. Managerial and Decision Economics 24 23 (2003) 187-211
31. Oliveira P.A., Roth A.V., Conley M.V., and Voss C. Knowledge assets in global service strategy. In: Gibson D.V., Stolp C., Conceicao P., and Heitor M.V. (Eds). Systems and Policies for the Global Learning Economy (2003), Praeger Publishers, Westport, CT
32. Ordonez de Pablos P. Knowledge flow transfers in multinational corporations: knowledge properties and implications for management. Journal of Knowledge Management 8 6 (2004) 105-116
33. Osborn R., and Baughn C. Forms of interorganizational governance for multinational alliances. Academy of Management Journal 33 3 (1990) 503-520
34. Perry C. Processes of a case study methodology for post-graduate research in marketing. European Journal of Marketing 32 9/10 (1998) 785-802
35. Prahalad K., and Hamel G. The core competence of the corporation. Harvard Business Review 68 3 (1990) 79-90
36. Quinn J., and Hilmer F. Strategic outsourcing. Sloan Management Review 35 3 (1994) 43-55
37. Rosenhead J., Elton M., and Gupta S. Robustness and optimality as criteria for strategic decisions. Operational Research Quarterly 23 4 (1972) 413-431
38. Roth A., and Menor L. Insights into services research: a research agenda. Production and Operations Management 12 Summer (2) (2003) 145-164
39. Takeishi A. Bridging inter- and intra-firm boundaries: management of supplier development in automobile product development. Strategic Management Journal 22 5 (2001) 403-433
40. Takeishi A. Knowledge partitioning in the interfirm division of labor: the case of automotive product development. Organization Science 13 3 (2002) 321-338
41. Ulrich K.T., and Ellison D.J. Beyond make-buy: internalization and integration of design and production. Production and Operations Management 14 3 (2005) 315-331
42. Venkatesan R. Strategic sourcing: to make or not to make?. Harvard Business Review 70 6 (1992) 8-107
43. Vidal C.J., and Goetschalckx M. Modeling the effect of uncertainties on global logistics systems. Journal of Business Logistics 21 1 (2000) 95-120
44. Walker G., and Weber D. Supplier competition, uncertainty, and make-or-buy decisions. The Academy of Management Journal 30 3 (1987) 589-596
45. Williamson O.E. Markets and Hierarchies: Analysis and Antitrust Implications (1975), Free Press, New York, NY
46. Williamson O. The economics of organization: The transaction cost approach. American Journal of Sociology 87 3 (1981) 548-577
47. Williamson O.E. The Economic Institutions of Capitalism (1985), The Free Press, New York
48. Williamson O.E. The logic of economic organization. Journal of Law, Economics & Organization 4 1 (1988) 65-93
49. Williamson O.E., and Ouchi W. The markets and hierarchies and visible hand perspectives. In: Van de Ven A., and Joyce W. (Eds). Perspectives on Organizational Design and Behavior (1981), Wiley, New York, NY 347-370
50. Wu F., Li H.Z., Chu L.K., and Sculli D. An outsourcing decision model for sustaining long-term performance. International Journal of Production Research 43 12 (2005) 2513-2535
51. Yamamoto, M., 2004. Will India price itself out of the offshore market? Retrieved from CNET News.com at http://news.com.com/Will+India+price+itself+out+of+offshore+market/2100-1022_3-5180589.html on 12/16/2005.
52. Yin R.K. Case Study Research-Design and Methods. third ed. (2003), SAGE Publications, London