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Néomie Raassens

Date of PhD defense: 25 March 2011
Title of thesis: The Performance Implications of Outsourcing
ISBN: 978 90 5668 273 6
Promotor: Prof.dr. Inge Geyskens
Dr. Stefan Wuyts

Abstract:
Outsourcing is a fast-growing phenomenon. Despite the increasing interest in outsourcing, the consequences of this strategy remain unclear. While existing academic studies have provided valuable insights into the drivers of the outsourcing decision, this dissertation focuses on the performance implications of outsourcing and examines conditions under which outsourcing may be a successful strategy. The first essay concerns the impact of outsourcing customer support on the financial performance of the firm. It is argued that the performance implications of outsourcing customer support are dependent upon the type of customer support that is being outsourced, the institutional context surrounding the outsourcing relationship, and the mechanisms used to govern the outsourcing agreement. The second essay examines the financial performance implications of outsourcing new product development (NPD). It theorizes and tests the effectiveness of minority equity participation and prior tie selection under different levels of external and internal uncertainty, i.e. technological uncertainty and cultural distance, respectively. The third essay studies the effect of outsourcing manufacturing on firm innovation. It is argued that the relationship between outsourcing and innovation is contingent upon demand volatility, R&D intensity, and marketing intensity. Collectively, the three essays in this dissertation advance current knowledge on outsourcing by showing that the inconsistent findings regarding the effects of outsourcing on firm performance are a systematic and predictable set of contingent effects.

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