The emergence of the outsourcing market and product technological performance

Abstract

This study is a novel empirical endeavor to analyze the impact of market demand and product technological performance on the growth of industry's outsourcing activities. Using the laptop computer industry as an example, this study examines the connection between the growth of outsourcing activities and product technological performance as well as market demand. The results suggest that, in addition to the relative efficiency assumed from transaction cost economies, the products' technological performance and market demand might also influence the growth of industry's outsourcing activities. (C) 2013 Elsevier Inc. All rights reserved.