Essay Examples on Truckee Meadows Community College

Different theoretical angles that explain the outsourcing Decision

The aim of this section is to outline the different theoretical angles that explain the outsourcing decision As previously mentioned this topic has been extensively studied by the literature thanks to its multidisciplinary nature These perspectives include business strategy economics and inter organizational relationships Transaction cost economics TCE is known as the most significant theory on outsourcing This concept was developed by Thomas Williamson in 1975 and it combines economic and management theory to determine which is the best type of relation a company will likely established within the market when is deciding whether is appropriate to outsource an activity or not At the end of the exercise companies are mainly motivated by maximizing its efficiency which means they will adopt the form of governance that represents the lowest cost The use of this concept is widely used within the literature as companies consider outsourcing decisions from the cost perspective NOMBRAR ARTICULOS First of all authors William J Baumol Autor Alan S Blinder debate that the use of this concept revolves around the idea that individuals behave opportunistically from a handful of choices one of the parties they will always take the decisions that fulfill their interests as it exist an asymmetrical distribution of the information between the exchange parties 

2 pages | 418 words