A significant volume of research examines value creation (total value created in a given relational transaction between two or more firms) and value appropriation (level of value the focal firm captures) as two major components in what managers consider when considering the outsourcing choice....

This study adds to our understanding of outsourcing decision-making by examining the differential effect of potential cost and non-cost innovation benefits on outsourcing choices made by top managers. In addition, we show that value appropriation - which we define in this context as a firm's...

Acknowledging efficiency motives, firms have increasingly turned to outsourcing in an effort to capture cost savings. Transaction cost theory (TCT) has been the dominant means of explaining outsourcing as an economizing approach whereby cost efficiencies are achieved by assigning transactions to...