Politics and Firm Boundaries: How Organizational Structure, Group Interests, and Resources Affect Outsourcing

@article{Bidwell2012PoliticsAF,
  title={Politics and Firm Boundaries: How Organizational Structure, Group Interests, and Resources Affect Outsourcing},
  author={Matthew Bidwell},
  journal={Organization Science},
  year={2012},
  volume={23},
  pages={1622-1642}
}
How does managers' pursuit of their own intraorganizational interests affect decisions about what work to outsource and how to contract with vendors? I study this question using a qualitative study of outsourcing in the information technology department of a large financial services firm. Traditional transaction cost-based theories argue that decisions about which transactions to outsource should reflect the characteristics of those transactions, yet I find only a weak link between transaction… CONTINUE READING
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