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Outsourcing in the service based industries: an analysis using transaction cost economics and knowledge-based view

Outsourcing in the service based industries: an analysis using transaction cost economics and... While intense global competition drives firms to move knowledge-based activities offshore to take advantage of inexpensive foreign labour, there are increased costs with monitoring and managing activities located in distant locations. Additionally, certain knowledge types may be more difficult to transfer and assimilate across national borders. Both transaction cost economics and the knowledge-based view focus on important but separate issues related to offshore outsourcing. In this paper we combine both theoretical views and offer five propositions which we test using the data from two exploratory case studies. Finally, we discuss our results and give implications for future research. Keywords: strategy; outsourcing; offshore outsourcing; global sourcing; service industry; knowledge-based. Reference to this paper should be made as follows: Gopalakrishnan, S. and Saparito, P.A. (2011) `: an analysis using transaction cost economics and knowledge-based view', Int. J. Knowledge Management Studies, Vol. 4, No. 4, pp.359­374. Biographical notes: Shanthi Gopalakrishnan (PhD Rutgers University) is Professor of Management and Associate Dean in the School of Management at New Jersey Institute of Technology. Her research interests are knowledge and innovation management and strategic alliances. She has published over 25 papers in journals such as Journal of Management Studies, IEEE Transactions in Engineering Management, http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Knowledge Management Studies Inderscience Publishers

Outsourcing in the service based industries: an analysis using transaction cost economics and knowledge-based view

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Publisher
Inderscience Publishers
Copyright
Copyright © 2011 Inderscience Enterprises Ltd.
Subject
COMPUTING JOURNALS; Information Systems and Technology; Knowledge Studies; MANAGEMENT JOURNALS; Policy and Organisational Management
ISSN
1743-8268
eISSN
1743-8276
DOI
10.1504/IJKMS.2011.048433
Publisher site
See Article on Publisher Site

Abstract

While intense global competition drives firms to move knowledge-based activities offshore to take advantage of inexpensive foreign labour, there are increased costs with monitoring and managing activities located in distant locations. Additionally, certain knowledge types may be more difficult to transfer and assimilate across national borders. Both transaction cost economics and the knowledge-based view focus on important but separate issues related to offshore outsourcing. In this paper we combine both theoretical views and offer five propositions which we test using the data from two exploratory case studies. Finally, we discuss our results and give implications for future research. Keywords: strategy; outsourcing; offshore outsourcing; global sourcing; service industry; knowledge-based. Reference to this paper should be made as follows: Gopalakrishnan, S. and Saparito, P.A. (2011) `: an analysis using transaction cost economics and knowledge-based view', Int. J. Knowledge Management Studies, Vol. 4, No. 4, pp.359­374. Biographical notes: Shanthi Gopalakrishnan (PhD Rutgers University) is Professor of Management and Associate Dean in the School of Management at New Jersey Institute of Technology. Her research interests are knowledge and innovation management and strategic alliances. She has published over 25 papers in journals such as Journal of Management Studies, IEEE Transactions in Engineering Management,

Journal

International Journal of Knowledge Management Studies – Inderscience Publishers

Published: Jan 1, 2011

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