Mol, Michael J., Tulder, Rob van and Beije, P. R. (Paul R.), 1952-. (2005) Antecedents and performance consequences of international outsourcing. International Business Review, Vol.14 (No.5). pp. 599-617. ISSN 0969-5931

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Abstract

The outsourcing of intermediate products to international suppliers is believed to improve firm performance. We investigate this claim and test key dimensions of the decision to outsource internationally using survey data on 200 manufacturing firms located in the Netherlands. We find that most international outsourcing is intra-regional in nature. Furthermore international outsourcing is a consequence of a firm‟s ability to search and evaluate foreign suppliers, which is co-determined by its size, multinationality, and frequency of cross-border communications. Finally, no performance effects were observed for international or global outsourcing. We conclude international outsourcing is a balancing act between lower production costs abroad and lower transaction costs locally.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH):	Offshore outsourcing, Manufacturing industries -- Netherlands
Journal or Publication Title:	International Business Review
Publisher:	Elsevier
ISSN:	0969-5931
Date:	October 2005
Volume:	Vol.14
Number:	No.5
Page Range:	pp. 599-617
Identification Number:	10.1016/j.ibusrev.2005.05.004
Status:	Peer Reviewed
Access rights to Published version:	Restricted or Subscription Access
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URI:	http://wrap.warwick.ac.uk/id/eprint/4412

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