The existing outsourcing literature has generally overlooked the cost differential and contract negotiations between manufacturers and suppliers (by assuming identical cost structures and adopting Stackelberg-game based models). One fundamental question that yet to be addressed is whether...

Despite the widespread of cost-driven outsourcing practices, academic research cautions that suppliers' cost advantage may weaken manufacturers' bargaining positions in negotiating outsourcing agreements, thereby hurting their profitability. In this paper, we attempt to further understand the...

In the electronics industry and beyond, original design manufacturers (ODMs) provide a full spectrum of services, ranging from design and development to manufacturing, to original equipment manufacturers (OEMs). Through resource pooling, ODMs benefit from scope economies when designing different...

During the last few decades, the growing demand of electronics and computer products has given rise to a new breed of manufacturing firms in Asia, the so-called original design manufacturers (ODMs), for example, Flextronics, Quanta, and Compal, etc. These companies provide design, manufacturing,...

This paper studies the effects of international taxation on multinational firms' production outsourcing strategies, which has attracted recent attention from both practitioners and legislators. We find that under the territorial tax system, the presence of global tax disparity may result in...

Firms in advanced economies are increasingly outsourcing software and technology development as well as other knowledge work to a worldwide supply base. Standard economic and learning models predict that focal firms should outsource either all or none of a particular activity unless extra...