TY - GEN
T1 - Offshore or not? An transaction cost economics analysis
AU - Li, Jessica Pu
AU - Kishore, Rajiv
PY - 2006
Y1 - 2006
N2 - 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.
AB - 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.
KW - Make-or-buy decision
KW - Offshore outsourcing
KW - Transaction cost economics
UR - https://www.scopus.com/pages/publications/84870317077
M3 - Conference contribution
AN - SCOPUS:84870317077
SN - 9781604236262
T3 - Association for Information Systems - 12th Americas Conference On Information Systems, AMCIS 2006
SP - 3127
EP - 3135
BT - Association for Information Systems - 12th Americas Conference On Information Systems, AMCIS 2006
T2 - 12th Americas Conference on Information Systems, AMCIS 2006
Y2 - 4 August 2006 through 6 August 2006
ER -