Trust Problems in Household Outsourcing  

Oleh:

Ruijter, Esther de ; Lippe, Tanja van der ; Raub, Werner

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Rationality and Society vol. 15 no. 4 (Nov. 2003), page 473-507.
Topik: domestic outsourcing; embeddedness; transaction costs; trust problems
Fulltext: 473RS154.pdf (196.81KB)

Isi artikel

This article addresses the issue of domestic outsourcing. We view outsourcing decisions as the result of utility-maximizing behavior on the part of households. Earlier studies have shown that households with more time constraints, the most common reason for outsourcing, do not always outsource more. To account for these unexpected empirical ®ndings, we provide a new explanation for outsourcing decisions that focuses on trust problems associated with outsourcing household and caring tasks. Trust problems are related to the competence, values, and possibilities as well as incentives for opportunism on the part of the supplier of the product or service. Using insights from the transaction cost approach, new hypotheses are formulated on the in¯uence of the problem potential on the make-or-buy decision (whether or not to outsource a task). The embeddedness of the supplier is introduced as a way to generate trust, thus decreasing the problem potential.

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