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On the role of sunk costs and asset specificity in outsourcing decisions: a research note

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  • Roodhooft, Filip
  • Warlop, Luk

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  • Roodhooft, Filip & Warlop, Luk, 1999. "On the role of sunk costs and asset specificity in outsourcing decisions: a research note," Accounting, Organizations and Society, Elsevier, vol. 24(4), pages 363-369, May.
    • Handle: RePEc:eee:aosoci:v:24:y:1999:i:4:p:363-369
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    1. Garland, Howard & Newport, Stephanie, 1991. "Effects of absolute and relative sunk costs on the decision to persist with a course of action," Organizational Behavior and Human Decision Processes, Elsevier, vol. 48(1), pages 55-69, February.
    2. Chenhall, Robert & Morris, Deigan, 1991. "The effect of cognitive style and sponsorship bias on the treatment of opportunity costs in resource allocation decisions," Accounting, Organizations and Society, Elsevier, vol. 16(1), pages 27-46.
    3. Lyons, Bruce R., 1995. "Specific investment, economies of scale, and the make-or-buy decision: A test of transaction cost theory," Journal of Economic Behavior & Organization, Elsevier, vol. 26(3), pages 431-443, May.
    4. Lieberman, Marvin B, 1991. "Determinants of Vertical Integration: An Empirical Test," Journal of Industrial Economics, Wiley Blackwell, vol. 39(5), pages 451-466, September.
    5. Oliver E. Williamson, 2025. "Transaction Cost Economics," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, edition 0, chapter 4, pages 47-71, Springer.
    6. Harrell, Adrian & Harrison, Paul, 1994. "An incentive to shirk, privately held information, and managers' project evaluation decisions," Accounting, Organizations and Society, Elsevier, vol. 19(7), pages 569-577, October.
    7. Whyte, Glen, 1994. "The role of asset specificity in the vertical integration decision," Journal of Economic Behavior & Organization, Elsevier, vol. 23(3), pages 287-302, May.
    8. Kanodia, C & Bushman, R & Dickhaut, J, 1989. "Escalation Errors And The Sunk Cost Effect - An Explanation Based On Reputation And Information Asymmetries," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 27(1), pages 59-77.
    9. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    10. Arkes, Hal R. & Blumer, Catherine, 1985. "The psychology of sunk cost," Organizational Behavior and Human Decision Processes, Elsevier, vol. 35(1), pages 124-140, February.
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    Cited by:

    1. Holl, Adelheid, 2008. "Production subcontracting and location," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 299-309, May.
    2. Süleyman Tuluð Ok, 2010. "International Outsourcing: Empirical Evidence from the Netherlands," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(1), pages 131-143, November.
    3. Diego Rodríguez Rodríguez & Fernando Merino de Lucas, 2001. "The demand of business services in Spain," Working Papers 02/01, Instituto Universitario de Análisis Económico y Social.
    4. Simon C. Parker, 2010. "Contracting Out, Public Policy And Entrepreneurship," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(2), pages 119-144, May.
    5. Caglio, Ariela & Ditillo, Angelo, 2008. "A review and discussion of management control in inter-firm relationships: Achievements and future directions," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 865-898.
    6. Anderson, Shannon W. & Glenn, David & Sedatole, Karen L., 2000. "Sourcing parts of complex products: evidence on transactions costs, high-powered incentives and ex-post opportunism," Accounting, Organizations and Society, Elsevier, vol. 25(8), pages 723-749, November.
    7. Emmanuel Agwu Arisi-Nwugballa, 2016. "Does Outsourcing Improve Quality of Service in Public Healthcare Institutions in South-East Nigeria?," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 196-203, April.
    8. Haita, Corina, 2013. "Sunk-Cost Fallacy with Partial Reversibilityː An Experimental Investigation," WiSo-HH Working Paper Series 9, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    9. Patricia Gabaldón Quiñones & Carlos Iglesias Fernández & Elena Mañas Alcón, 2002. "El empleo en los servicios sociales, culturales y comunitarios," Working Papers 01/02, Instituto Universitario de Análisis Económico y Social.
    10. Catherine J. Morrison Paul & Mahmut Yasar, 2009. "Outsourcing, productivity, and input composition at the plant level," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 422-439, May.
    11. Viswanathan, Madhu & Mukherji, Prokriti & Narasimhan, Om & Chandy, Rajesh, 2021. "The performance impact of core component outsourcing: insights from the LCD TV industry," LSE Research Online Documents on Economics 109853, London School of Economics and Political Science, LSE Library.
    12. Smith, Julia A. & Morris, Jonathan & Ezzamel, Mahmoud, 2005. "Organisational change, outsourcing and the impact on management accounting," The British Accounting Review, Elsevier, vol. 37(4), pages 415-441.
    13. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    14. Muhammad Kaleem Zahir-ul-Hassan & Reinald A. Minnaar & Ed Vosselman, 2016. "Governance and control as mediating instruments in an inter-firm relationship: towards collaboration or transactions?," Accounting and Business Research, Taylor & Francis Journals, vol. 46(4), pages 365-389, June.
    15. De Vita, Glauco & Tekaya, Arafet, 2015. "Hotel outsourcing under asset specificity: “The good, the bad and the ugly”," Tourism Management, Elsevier, vol. 47(C), pages 97-106.
    16. Caroline Stiel, 2017. "Modern Public Enterprises: Organisational Innovation and Productivity," Discussion Papers of DIW Berlin 1713, DIW Berlin, German Institute for Economic Research.
    17. Lilian Nanjala Wabwile & G.S. Namusonge, 2015. "Determinants of Outsourcing as a Competitive Strategy in Supply Chain Management of Manufacturing Companies in Kenya (A Case Study of East African Breweries Limited)," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(5), pages 190-202, May.

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