The dominant view is that outsourcing is driven by efficiency considerations. We demonstrate that a different path to outsourcing originates from critical internal resource shortages. These shortages pose a critical dilemma; on the one hand outsourcing is a reasonably durable approach to solving...

Cross-border business relationships often involve significant risk because they entail greater information asymmetry and complexity to manage collaboration than domestic relationships. Yet, little is known about the contractual design of such relationships. We examine a prominent form of...