The roles of task-environmental factors in outsourcing strategy: a combinative research
by Ming-Ji James Lin, Yi-Pei Huang
International Journal of Business and Systems Research (IJBSR), Vol. 2, No. 3, 2008

Abstract: This study attempts to do a combinative study that introduces two task-environmental factors from economic-geography perspective in complementary to previous management perspective for establishing practices in outsourcing decision systems. Based on model in Krugman and Venables [Krugman, P. and Venables, A.J. (1995) 'Globalization and inequality of nations', Quarterly Journal of Economics, Vol. 110, pp.857-880], we stress the importance of transportation cost which is conditioned by two task-environmental factors: Intermediates Intensity (II) and Consumers' Demand Elasticity (CDE). Two propositions emerge after mathematical derivation: higher II positively encourages companies to outsource; larger CDE discourages companies to outsource. Several cases are provided to validate our propositions. This research contributes to future study for avoiding bias from ignoring II and CDE.

Online publication date: Tue, 30-Sep-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Systems Research (IJBSR):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com