IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Strategic Management of International Subcontracting: A Transaction Cost Perspective

Strategic Management of International Subcontracting: A Transaction Cost Perspective
View Sample PDF
Author(s): Yue Wang (University of New South Wales, Australia)
Copyright: 2010
Pages: 11
Source title: Strategic Information Systems: Concepts, Methodologies, Tools, and Applications
Source Author(s)/Editor(s): M. Gordon Hunter (University of Lethbridge, Canada)
DOI: 10.4018/978-1-60566-677-8.ch079

Purchase

View Strategic Management of International Subcontracting: A Transaction Cost Perspective on the publisher's website for pricing and purchasing information.

Abstract

Research on international subcontracting has been policy-oriented and industry-focused. There is a lack of understanding of the phenomenon from strategic management and international business perspectives. This article conceptualizes international subcontracting as a type of relational contract formed by buyers and suppliers from different countries, aiming to facilitate the sourcing of products or components with buyer-specific requirements. It builds a transaction cost model for studying the strategic choice of international subcontracting as an intermediate governance structure, sitting between arm’s length outsourcing arrangement and vertically integrated multinational enterprises (MNEs). A set of propositions are developed to aid future empirical research and to provide managers with some guidelines for organizing supply chain across borders. The model also allows managers to examine the complex nature of a range of subcontracting relationships and identify the specific mechanisms that can be used to preserve and manage the dyadic principal-subcontractor exchanges.

Related Content

Michael A. Erskine, Will Pepper. © 2019. 25 pages.
Camilla Metelmann, Bibiana Metelmann. © 2019. 25 pages.
Lars Haahr. © 2019. 21 pages.
Hans J. Scholl. © 2019. 35 pages.
Mohamed Mahmood. © 2019. 16 pages.
Amizan Omar, Craig Johnson, Vishanth Weerakkody. © 2019. 22 pages.
Bruna Diirr, Renata Araujo, Claudia Cappelli. © 2019. 31 pages.
Body Bottom