This paper studies the effect of home-host country distance on the choice of governance mode in the offshoring of services. Using a Transaction Cost Economics approach, we look at the comparative costs of the hierarchical and contractual models to show that different dimensions of distance...

With the progress of information and communication technologies, the cost and efforts to remotely exchange information have drastically fallen. It has created new opportunities to leverage comparative advantages by reorganizing value chains along the geographic dimension and by reconsidering the...

This paper studies the effect of home-host country distance on the choice ofgovernance mode in service offshoring. Using a Transaction Cost Economicsapproach, we explore the comparative costs of the hierarchical and contractualmodels to show that different dimensions of distance (geographic,...