Task Interdependence and Firm Performance in Outsourced Service Operations

We conceptualize task interdependence between firms in outsourced service operations as an endogenous design choice made by the outsourcing firm. Then, utilizing relative firm efficiency and Tobin’s q as performance metrics, we examine the impacts of the task interdependence choices of outsourcing firms on their performances. We examine data, collected from a variety of sources, on 184 service alliances across nine industries. We find that task...