The paper discusses the role of communication technologies in reducing the costs of using market exchange. It analyzes the comparative effect of new technologies on transactions which take place within and outside the firm using Coase's postulate of the size of the firm. Technologically...

Over the past two decades multinational firms from high-technology industries have increasingly relied on outsourcing of production to external suppliers. We present a theoretical framework that stems from the resource-based view of the firm (RBV) and develop hypotheses claiming that outsourcing...