Title: On the role of sunk costs and asset specificity in outsourcing decisions: a research note
Authors: Roodhooft, Filip ×
Warlop, Luk #
Issue Date: May-1999
Publisher: Pergamon-elsevier science ltd
Series Title: Accounting organizations and society vol:24 issue:4 pages:363-369
Abstract: The accounting literature has argued that firms overengage in outsourcing because they tend to ignore the transaction costs involved in buying services from external suppliers. A field experiment with managers of health care organizations shows that decision makers are actually quite sensitive to the asset specificity associated with the "buy" option in an outsourcing decision. However, they also appear inappropriately sensitive to the sunk costs inherent in most real-life outsourcing decisions, and may actually underengage in outsourcing. Prior commitment to internal procurement systematically reduced the willingness to outsource, relative to a pure "make or buy" scenario. (C) 1999 Elsevier Science Ltd. All rights reserved.
ISSN: 0361-3682
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center Accountancy, Leuven
Research Centre for Marketing and Consumer Science, Leuven
× corresponding author
# (joint) last author

Files in This Item:

There are no files associated with this item.

Request a copy


All items in Lirias are protected by copyright, with all rights reserved.

© Web of science