Skip to main content
Article thumbnail
Location of Repository

Antecedents and performance consequences of international outsourcing

By Michael J. Mol, Rob van Tulder and P. R. Beije

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

Topics: HD
Publisher: Elsevier
Year: 2005
OAI identifier: oai:wrap.warwick.ac.uk:4412

Suggested articles

Citations

  1. (2004). A Perspective on Regional and Global Strategies of Multinational Enterprises. doi
  2. (2003). An empirical examination of transaction- and firm-level influences on the vertical boundaries of the firm. doi
  3. (1998). Clusters and the new economics of competition.
  4. (1998). Efficiency vs. effectiveness orientation of global sourcing strategy: A comparison of U.S. and Japanese multinational companies. doi
  5. (1995). Global sourcing strategies of U.S. subsidiaries of foreign multinationals.
  6. (1992). Global Sourcing Strategy: R&D, Manufacturing, and Marketing Interfaces. doi
  7. (1998). Governing with Multinationals.
  8. (1965). Industrial Organization: Theory and Practice. doi
  9. (1994). International procurement strategies: Challenges and opportunities for the small firm.
  10. (1993). International production and sourcing: Trends and issues.
  11. (2003). International purchasing and global sourcing – what are the differences? doi
  12. (1993). International purchasing: Benefits, requirements and challenges. doi
  13. (1995). International sourcing and supply chain stability. doi
  14. (1974). International sourcing strategy.
  15. (1978). Mail and Telephone Surveys: The Total Design Method. doi
  16. (1989). Managing across borders: The transnational corporation. Boston: doi
  17. (1998). Managing Business Relationships. doi
  18. (1993). Multinational Enterprises and the Global Economy. doi
  19. (1992). Offshore sourcing: Its nature and scope.
  20. (1994). Offshore sourcing: Reaction, maturation and consolidation of US multinationals. doi
  21. (1994). Operating flexibility, global manufacturing, and the option value of a multinational network, doi
  22. (1972). Organizational Buying Behavior. Englewood Cliffs, doi
  23. (1978). Organizational Strategy, Structure and Process. doi
  24. (1979). Overseas production and exporting by the world's largest enterprises: A study in sourcing policy. doi
  25. (1990). Perceptual and archival measures of Miles and Snow's strategic types: A comprehensive assessment of reliability and validity. doi
  26. (1989). Sourcing strategies of European and Japanese multinationals: A comparison. doi
  27. (1995). Strategic and financial implications of global sourcing strategy: A contingency analysis. doi
  28. (1994). Strategic outsourcing.
  29. (2000). The End of Globalization. doi
  30. (1993). The extension of networks of production across borders.
  31. (1978). The pattern of intra-firm exports by US multinationals. doi
  32. (2000). The problem of search and deliberation in international exchange: Microfoundations to some macro patterns. doi
  33. (1979). The product cycle hypothesis in a new international environment. doi
  34. Tulder (eds) (2004) Cars, Carriers or Regionalism, doi
  35. (1998). Worldwide sourcing: Facilitating continued success.

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.