How the transaction cost and resource‐based theories of the firm inform outsourcing evaluation

Transaction cost economics (TCE) and the resource‐based view (RBV) of the firm have been extremely influential in the study of outsourcing both in theory and practice. This paper argues that neither transaction cost economics nor the resource‐based view alone can fully explain the complexities of outsourcing. A review and critique of these theories as a means of understanding the complexities of outsourcing is presented. A prescriptive framework...