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Toward a model of strategic outsourcing
Author(s) -
Holcomb Tim R.,
Hitt Michael A.
Publication year - 2007
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2006.05.003
Subject(s) - outsourcing , transaction cost , business , resource based view , industrial organization , corporate governance , value (mathematics) , resource (disambiguation) , process management , marketing , computer science , finance , competitive advantage , computer network , machine learning
Acknowledging efficiency motives, firms have increasingly turned to outsourcing in an effort to capture cost savings. Transaction cost theory (TCT) has been the dominant means of explaining outsourcing as an economizing approach whereby cost efficiencies are achieved by assigning transactions to different governance mechanisms. Recent research has used the resource‐based view (RBV) to examine the role of specialized capabilities as a potential source of value creation in relationships between firms. Although research in supply chain management has expanded substantially, only limited applications of TCT and the RBV are available, especially in the field of operations management. We extend both perspectives to explain conditions leading to strategic outsourcing.