Toward a Model of Strategic Outsourcing

Journal of Operations Management, Vol. 25, No. 2, pp. 464-481, 2007

18 Pages Posted: 29 Dec 2008

See all articles by Tim R. Holcomb

Tim R. Holcomb

Miami University

Michael A. Hitt

Texas A&M University - Department of Management; Texas Christian University

Date Written: April 1, 2007

Abstract

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 resourcebased 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.

Suggested Citation

Holcomb, Tim R. and Hitt, Michael A., Toward a Model of Strategic Outsourcing (April 1, 2007). Journal of Operations Management, Vol. 25, No. 2, pp. 464-481, 2007, Available at SSRN: https://ssrn.com/abstract=1321061

Tim R. Holcomb (Contact Author)

Miami University ( email )

Farmer School of Business
800 E. High Street, 2075 FSB / MSC1148
Oxford, OH Ohio 45056
United States
5135293665 (Phone)

HOME PAGE: http://fsb.miamioh.edu/

Michael A. Hitt

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States
979-458-3393 (Phone)

Texas Christian University ( email )

Fort Worth, TX 76129
United States

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