Exploring the link between IT systems and the outsourcing of logistics activities: A transaction cost perspective

Hong, Eui; Son, Byung-Gak; Menachof, David

Abstract

This study explores the relationship between the expansion of information technology (IT) systems and the outsourcing of logistics activities. Transaction cost theory was adopted to explain this relationship. The research model for this study consists of the degree of IT as an independent variable, the degree of outsourcing of logistics activities as a dependent variable and different types of transaction costs as mediators. The results show that companies that utilise more IT tend to outsource their logistics activities more than those who do not transact electronically, as IT utilisation facilitates outsourcing through reductions in transaction costs.

Citation

Hong, E., Son, B.-G., & Menachof, D. (2010). Exploring the link between IT systems and the outsourcing of logistics activities: A transaction cost perspective. International Journal of Logistics Research and Applications, 13(1), 41-57. https://doi.org/10.1080/13675560903233682

• Journal Article Type: Article
• Acceptance Date: Jul 31, 2009
• Online Publication Date: Feb 12, 2010
• Publication Date: Feb 1, 2010
• Deposit Date: Nov 13, 2014
• Journal: International Journal Of Logistics-Research And Applications
• Print ISSN: 1367-5567
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 13
• Issue: 1
• Article Number: PII 919213138
• Pages: 41-57
• DOI: https://doi.org/10.1080/13675560903233682
• Keywords: Control and Systems Engineering; Management Science and Operations Research; Management Information Systems; Information Systems; Computer Science Applications
• Public URL: https://hull-repository.worktribe.com/output/461959
• Publisher URL: https://www.tandfonline.com/doi/full/10.1080/13675560903233682
• Contract Date: Nov 13, 2014