Year
2013
Authors
Abstract
Knowledge based transaction costs (KTC) are knowledge related costs associated with the transfer of an information technology (IT) firm process outside its boundaries to a contractual partner. In this paper, we show that these knowledge based transaction costs are omitted variables in studies of firm boundaries that may reduce the likelihood of outsourcing. While KTC lower the likelihood of outsourcing, the way managers frame the outsourcing decision is also important. As a result, managers may engage in outsourcing of IT processes even though they risk greater expropriation hazards in order not to lose out on higher expected outsourced performance.
JAIN, A. et THIETART, R.A. (2013). Knowledge Based Transactions and Decision Framing in Information Technology Outsourcing. Journal of Strategic Information Systems, 22(4), pp. 315-327.