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Transaction Cost Economics and After: Addressing The New Theory Challenge

In: The New IT Outsourcing Landscape

Author

Listed:
  • Mary C. Lacity
  • Leslie P. Willcocks
  • Shaji Khan

Abstract

Transaction Cost Economics (TCE) has been the most frequently appropriated theoretical frameworks to study Information Technology Outsourcing (ITO) (Dibbern et al., 2004; Klein, 2002). TCE is a theory specifically addressing make-or-buy decisions and has therefore been viewed as a strong theoretical base for analysing ITO decisions. TCE has enjoyed an abundance of empirical and theoretical academic attention in other organizational contexts, which may have also influenced its appeal to ITO researchers (Anderson, 1994; Bowen and Jones, 1986; Griesinger, 1990; Hennart, 1991a, 1991b; Hesterly et al., 1990; Hill, 1990; Joskow, 1985, 1991; Lieberman, 1991; Malone, 1987; Malone et al., 1987; Pisano, 1990; Robins, 1987; Walker and Poppo, 1991). In addition, this is a theory we have used and applied in our own empirical work (Lacity and Willcocks, 1995, 2009; Poppo and Lacity, 2002). Given its common adoption for studying ITO, and following on our observations in Chapter 1, it is both relevant and timely to review further the empirical applications of TCE to the ITO context.

Suggested Citation

  • Mary C. Lacity & Leslie P. Willcocks & Shaji Khan, 2012. "Transaction Cost Economics and After: Addressing The New Theory Challenge," Palgrave Macmillan Books, in: The New IT Outsourcing Landscape, chapter 2, pages 89-126, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-01229-6_3
    DOI: 10.1057/9781137012296_3
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