Understanding Online Sourcing Decisions From The Service Clients' Perspective: An Integrative Theoretical Framework

In this study we empirically examine a new global phenomenon - online sourcing with a quantitative research method. Online sourcing is the newest development in outsourcing recently that uses Internet as the primary sourcing platform to approach the global sourcing of services. We believe that the emergence of online sourcing will fundamentally change the way work is done. Thus, gaining a deep understanding of the adoption of online sourcing becomes particularly important. Drawing upon theories of firms including transaction cost theory, we propose an integrative theoretical framework for the understanding of online sourcing decisions from the service clients perspective. The research model is examined with the data collected from an online sourcing platform. Our findings suggest the integrative theoretical framework rather than single perspective in understanding online sourcing decisions. Moreover, the study discloses how outsourcing decision attributes grounded in theories are interrelated within an integrative theoretical framework, as well as the relative importance of each theoretical perspective. Finally implications to theory, practice, business and society are discussed.