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Determinants of Outsourcing: Transaction Cost Economics and Core Competencies Theory

Xu, Yushan (2009)
Department of Economic History
Abstract
A significant feature of firm behaviors in the 1990s has been the practice of outsourcing. From the view of outsourcing clients, the outsourcing decisions are always influenced by several factors, such as cost reduction, focus on core competency, strategic requirement and so on. This paper based on the theory of transaction cost and core competencies, through the introduction of decision model to illustrate three critical determinants for outsourcing decision. This paper applies qualitative analysis to explain three dimensions of the model: Assets specificity, Sunk costs and Core competencies. The case study of China Development Bank shows how firm makes the outsourcing decision according to three aspects in the model and its outcomes of... (More)
A significant feature of firm behaviors in the 1990s has been the practice of outsourcing. From the view of outsourcing clients, the outsourcing decisions are always influenced by several factors, such as cost reduction, focus on core competency, strategic requirement and so on. This paper based on the theory of transaction cost and core competencies, through the introduction of decision model to illustrate three critical determinants for outsourcing decision. This paper applies qualitative analysis to explain three dimensions of the model: Assets specificity, Sunk costs and Core competencies. The case study of China Development Bank shows how firm makes the outsourcing decision according to three aspects in the model and its outcomes of outsourcing. Finally, summarize our results and try to give suggestions to government, outsourcing suppliers and clients. (Less)
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author
Xu, Yushan
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Transaction cost, outsourcing decison, sunk cost, core competency, Social and economic history, Ekonomisk och social historia
language
English
id
1468621
date added to LUP
2009-08-25 00:00:00
date last changed
2010-08-03 10:52:45
@misc{1468621,
  abstract     = {A significant feature of firm behaviors in the 1990s has been the practice of outsourcing. From the view of outsourcing clients, the outsourcing decisions are always influenced by several factors, such as cost reduction, focus on core competency, strategic requirement and so on. This paper based on the theory of transaction cost and core competencies, through the introduction of decision model to illustrate three critical determinants for outsourcing decision. This paper applies qualitative analysis to explain three dimensions of the model: Assets specificity, Sunk costs and Core competencies. The case study of China Development Bank shows how firm makes the outsourcing decision according to three aspects in the model and its outcomes of outsourcing. Finally, summarize our results and try to give suggestions to government, outsourcing suppliers and clients.},
  author       = {Xu, Yushan},
  keyword      = {Transaction cost,outsourcing decison,sunk cost,core competency,Social and economic history,Ekonomisk och social historia},
  language     = {eng},
  note         = {Student Paper},
  title        = {Determinants of Outsourcing: Transaction Cost Economics and Core Competencies Theory},
  year         = {2009},
}