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Author: | Barthélemy, J. Quélin, B.V. |
Title: | Complexity of outsourcing contracts and ex post transaction costs: an empirical investigation |
Journal: | Journal of Management Studies
2006 : DEC, VOL. 43:8, p. 1775-1797 |
Index terms: | contracts outsourcing resources transaction costs |
Language: | eng |
Abstract: | The study uses transaction cost economics (TCE) and the resource-based view (RBV) of the firm to investigate outsourcing agreements. An original approach of contract complexity is developed and the links among exchange hazards, the contractual aspects of outsourcing and the level of ex post transaction costs are analysed. Both contract complexity and ex post transaction costs are measured. The paper uses three different dimensions, proximity to the core business; switching costs and adaptation costs, to assess the strategic importance of an outsourced activity |
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