Netsourcing Strategies for Vendors: A Resource-based and Transaction Cost Economics Perspective

Abstract

This paper discusses Netsourcing strategies for vendors, a little explored area of outsourcing research, using both a resource-based (RBV) perspective and a transaction cost economics (TCE) perspective. Using both theories and an infrastructural view of Information Technology service, we present a conceptual model of vendor sourcing decisions. We then present a number of propositions based on case studies of vendor decisions. Finally we conclude by discussing the theoretical contribution of RBV and TCE and, crucially, the value of combining both theories for the study of Netsourcing, and for other areas of IS research.