Towards a Unified Framework on Outsourcing: Integrating Multiple Theoretical Viewpoints

Existing research on outsourcing uses several different theoretical perspectives to study outsourcing, including the resource based view, transaction costs analysis, contingency theory and agency theory. While studying a phenomenon from different viewpoints increases our understanding on the subject, we need a consistent theoretical framework to consolidate the ideas generated in the field, compare and contrast previous results, and build on for future analysis. In this paper, we integrate the concepts of these four theoretical viewpoints into a unified sourcing framework that encompasses both the antecedents to outsourcing as well as the consequences of outsourcing. The antecedents to outsourcing include environmental perceptions and resource perceptions. The consequences of outsourcing include greater environmental fit, higher rents, lower production costs and higher agency costs.