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A comparative Test of the Efficiency, focus and Learning Perspectives of Outsourcing

Author

Listed:
  • Frédéric, DALSACE
  • Nicola C., DRAGONETTI

    (INSEAD)

  • Karel, COOL

    (INSEAD)

Abstract
Despite the fact that vertical integration has been a key question of management studies for more than fifty years, we still do not have a unified, coherent view of outsourcing. In particular, multiple theoretical perspectives such as transaction cost economics, industrial organization, and strategy, could explain the outsourcing decision, but the implications of these different streams have neither been theoretically integrated, nor tested simultaneously. In an attempt to disentangle the various causes of outsourcing, we suggest three different rationales for outsourcing: cost reduction, focusing on core capabilities and importing knowledge into the firm. We develop several hypotheses, which we then test on secondary data on French small- and medium-sized enterprises. Results indicate that the learning rationale appears to be the strongest factor influencing the outsourcing decision. Some performance implications of this rationale are also suggested and tested.

Suggested Citation

  • Frédéric, DALSACE & Nicola C., DRAGONETTI & Karel, COOL, 2003. "A comparative Test of the Efficiency, focus and Learning Perspectives of Outsourcing," HEC Research Papers Series 776, HEC Paris.
    • Handle: RePEc:ebg:heccah:0776
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    File URL: http://www.hec.fr/var/fre/storage/original/application/780dedb3a411076524c50d3974b998d9.pdf
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    References listed on IDEAS

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    Cited by:

    1. Frédéric, DALSACE & Erin, ANDERSON & William T., ROSS, Jr., 2003. "Path Dependence in Personal Selling : A Meso-Analysis of Vertical Integration," HEC Research Papers Series 787, HEC Paris.

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    More about this item

    Keywords

    outsourcing; transaction cost economics; resource-based view; knowledge-based view;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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