Track: Operations Management and Operations Research
Abstract
Outsourcing, possible originating in the make-or-buy decision, has been investigated from a number of theoretical perspectives, such as transaction cost economics and the resource-based view; however, the use of these canonical theories has insufficiently accounted for its long-term effects, the risks associated with the decision and the phenomenon of backsourcing. To include these long-term effects, this paper presents a complementary view informed by a (theoretical) evolutionary biological perspective that counteracts some controversies raised in literature. This perspective leads to an outline of an evolutionary framework that could inform further research into the effectiveness of decision making on outsourcing.