Business Management Dynamics

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ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  8   Issue 01  2018  
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Article Abstract
TRANSACTION COST ANALYSIS, RESOURCE BASED VIEW AND MODE OF OFFSHORING OF SERVICES
Keywords:  Offshoring of services, Mode of Offshoring of services, Offshoring
Anand Pore
Since offshoring of services is increasingly becoming an important part of the firm's global strategy, the way a firm offshores services or in other words, Mode of Offshoring of Services (MOS) plays a significant role in helping the firm achieve it's strategic objectives (Pore, Shah & Sterrett, 2012; Pore, 2013). Offshoring of services is a widely researched area in International Business and Management (IBM) field and Management Information Systems (MIS) field and numerous theoretical lenses have been applied to study the phenomena of offshoring of services. From the review of the literature it seems that numerous studies in IBM have focused on either Transaction Cost Analysis (TCA) and/or Resource Based View (RBV) and these two theories are also widely used in MIS to explain offshoring of services. Also since the primary motives for offshoring of services is to either reduce cost (and TCA is more focused on cost minimization) and/or access resources (and per RBV, firm's resources are a source of firm's competitive advantage) both TCA and RBV can be very useful in studying MOS. Also it is not possible to study all the theories used in IBM and MIS in one study, hence this study is focused on TCA and RBV and their applicability to MOS.
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