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Trust Problems in Household Outsourcing

Author

Listed:
  • Esther de Ruijter
  • Tanja van der Lippe
  • Werner Raub

Abstract

This article addresses the issue of domestic outsourcing. We view outsourcing decisions as the result of utility-maximizing behavior on the part of households. Earlier studies have shown that households with more time constraints, the most common reason for outsourcing, do not always outsource more. To account for these unexpected empirical findings, we provide a new explanation for outsourcing decisions that focuses on trust problems associated with outsourcing household and caring tasks. Trust problems are related to the competence, values, and possibilities as well as incentives for opportunism on the part of the supplier of the product or service. Using insights from the transaction cost approach, new hypotheses are formulated on the influence of the problem potential on the make-or-buy decision (whether or not to outsource a task). The embeddedness of the supplier is introduced as a way to generate trust, thus decreasing the problem potential.

Suggested Citation

  • Esther de Ruijter & Tanja van der Lippe & Werner Raub, 2003. "Trust Problems in Household Outsourcing," Rationality and Society, , vol. 15(4), pages 473-507, November.
    • Handle: RePEc:sae:ratsoc:v:15:y:2003:i:4:p:473-507
    DOI: 10.1177/1043463103154003
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    References listed on IDEAS

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    5. Bengt Holmstrom, 1979. "Moral Hazard and Observability," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 74-91, Spring.
    6. Kim, Chankon, 1989. "Working wives' time-saving tendencies: Durable ownership, convenience food consumption, and meal purchases," Journal of Economic Psychology, Elsevier, vol. 10(3), pages 391-409, November.
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    8. Bellante, Don & Foster, Ann C, 1984. "Working Wives and Expenditure on Services," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(2), pages 700-707, September.
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    Cited by:

    1. Natascha Nisic & Friederike Molitor & Miriam Trübner, 2022. "A Matter of Quality? Experimental Evidence on Preferences and Willingness to Pay for Domestic Services," Working Papers 2209, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    2. Esther de Ruijter & Tanja van der Lippe & Werner Raub & Jeroen Weesie, 2008. "A Family Affair," Rationality and Society, , vol. 20(2), pages 203-226, May.
    3. Esther de Ruijter & Jeroen Weesie, 2007. "Working your Way in," Rationality and Society, , vol. 19(1), pages 35-64, February.
    4. Arnout van de Rijt & Vincent Buskens, 2006. "Trust in Intimate Relationships," Rationality and Society, , vol. 18(2), pages 123-156, May.

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