The role of cash on the outsourcing decision

Detalhes bibliográficos
Autor(a) principal: Teixeira, João
Data de Publicação: 2011
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.3/4958
Resumo: This paper investigates the effect of cash on a firm’s choice between vertical integration and outsourcing. We model the production decision in a Principal-Agent framework, and show that what motivates the choice of outsourcing are the firms’ cost differentials in effort and the benefit provided by the supplier’s effort alone. This latter benefit is linked with greater probabilities of reaching high production values in good states of nature. Suppliers use cash as a strategic instrument to collect the surplus from outsourcing, and their wealth constraint or limited liability ensures them more attractive compensation schemes.
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spelling The role of cash on the outsourcing decisionOutsourcingThis paper investigates the effect of cash on a firm’s choice between vertical integration and outsourcing. We model the production decision in a Principal-Agent framework, and show that what motivates the choice of outsourcing are the firms’ cost differentials in effort and the benefit provided by the supplier’s effort alone. This latter benefit is linked with greater probabilities of reaching high production values in good states of nature. Suppliers use cash as a strategic instrument to collect the surplus from outsourcing, and their wealth constraint or limited liability ensures them more attractive compensation schemes.Universidade dos AçoresRepositório da Universidade dos AçoresTeixeira, João2019-01-23T18:03:16Z2011-122011-12-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.3/4958engTeixeira, João C. A. (2011). The role of cash on the outsourcing decision, “Working Paper Series” nº 24/11, 21 pp.. Ponta Delgada: Universidade dos Açores, CEEAplA-A.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2022-12-20T14:33:13Zoai:repositorio.uac.pt:10400.3/4958Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T16:27:16.192688Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The role of cash on the outsourcing decision
title The role of cash on the outsourcing decision
spellingShingle The role of cash on the outsourcing decision
Teixeira, João
Outsourcing
title_short The role of cash on the outsourcing decision
title_full The role of cash on the outsourcing decision
title_fullStr The role of cash on the outsourcing decision
title_full_unstemmed The role of cash on the outsourcing decision
title_sort The role of cash on the outsourcing decision
author Teixeira, João
author_facet Teixeira, João
author_role author
dc.contributor.none.fl_str_mv Repositório da Universidade dos Açores
dc.contributor.author.fl_str_mv Teixeira, João
dc.subject.por.fl_str_mv Outsourcing
topic Outsourcing
description This paper investigates the effect of cash on a firm’s choice between vertical integration and outsourcing. We model the production decision in a Principal-Agent framework, and show that what motivates the choice of outsourcing are the firms’ cost differentials in effort and the benefit provided by the supplier’s effort alone. This latter benefit is linked with greater probabilities of reaching high production values in good states of nature. Suppliers use cash as a strategic instrument to collect the surplus from outsourcing, and their wealth constraint or limited liability ensures them more attractive compensation schemes.
publishDate 2011
dc.date.none.fl_str_mv 2011-12
2011-12-01T00:00:00Z
2019-01-23T18:03:16Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.3/4958
url http://hdl.handle.net/10400.3/4958
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Teixeira, João C. A. (2011). The role of cash on the outsourcing decision, “Working Paper Series” nº 24/11, 21 pp.. Ponta Delgada: Universidade dos Açores, CEEAplA-A.
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade dos Açores
publisher.none.fl_str_mv Universidade dos Açores
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
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collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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