Limits to outsourcing and the evolutionary perspective on firm boundaries

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Limits to outsourcing and the evolutionary perspective on firm boundaries

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dc.contributor.author Mahnke, Volker en_US
dc.date.accessioned 2009-02-04T10:25:25Z
dc.date.available 2009-02-04T10:25:25Z
dc.date.issued 2001-01-16T00:00:00Z en_US
dc.identifier.isbn 8778690641 en_US
dc.identifier.uri http://hdl.handle.net/10398/6899
dc.description.abstract Although there is reason to expect that outsourcing plays an increasingly important role in world of commerce, theories of firm boundaries poorly address associated processes of governance change. This paper seeks to address this gap in the spirit of the evolutionary theory of the firm. This approach highlights the significance of outsourcing as a "process of shifting from internal to external procurement of activities." Adopting an evolutionary process perspective suggests limits to outsourcing due to governance inseparability and partly tacit complementarity of capabilities as well as related dis-aggregation costs, including the costs of knowledge codification in the specification of interfaces in supplier/buyer relations, loss of absorptive capacity and integrating capabilities in the supplier’s system. A key departure from earlier approaches to firm boundaries is an explanation of such limits to outsourcing and their impact on two interrelated sources of efficiency: incentives and capabilities. For instance, when limits to outsourcing obtain, governance change for particular activities involves compromises of capability- and/or incentive efficiency in the experimental determination of organizational boundaries. Also discussed are environmental dynamics that variously emphasise efficiency properties of dispersed or concentrated ownership and capability development. en_US
dc.format.extent 28 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Arbejdsnote;2000-13 en_US
dc.relation.ispartofseries LINK Working paper;2000-26 en_US
dc.subject.other virksomhedens afgrænsning en_US
dc.subject.other outsourcing en_US
dc.title Limits to outsourcing and the evolutionary perspective on firm boundaries en_US
dc.type wp en_US
dc.accessionstatus AAmodt01jan15 KAT01jan16 hebe en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for Industriøkonomi og Virksomhedsstrategi en_US
dc.contributor.departmentshort INT
dc.contributor.departmentuk Department of Industrial Economics & Strategy en_US
dc.contributor.departmentukshort INT
dc.idnumber 8778690641 en_US
dc.publisher.city København en_US
dc.publisher.year 2000 en_US


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