Firm and Institutional Effects on Strategic Choices: Accelerated Startups Outsourcing Decisions

Autor: Carla V. Bustamante
Rok vydání: 2015
Předmět:
Zdroj: Academy of Management Proceedings. 2015:15336
ISSN: 2151-6561
0065-0668
DOI: 10.5465/ambpp.2015.15336abstract
Popis: This study examines how firm level contracting capabilities and institutional distance shape entrepreneurial firm’s governance decisions related to growth (insourcing vs. outsourcing). By integrating Transaction Costs, Resource Based View and Institutional theories we illuminate the relevance of contracting capabilities and institutional distance in shaping buy vs. make decisions. Combining three different datasets we create a panel that includes 469 domestic and foreign startups participating of an international acceleration program. After analyzing 705 meetings and 2,118 governance decisions we find that institutional distance and contracting capabilities encourage startups’ outsourcing. As a growth strategy, outsourcing allows startups to mitigate transaction and bureaucratic costs. Interestingly, we found that compared to domestic firms, foreign firms facing greater institutional distance rely on outsourcing strategies only to certain extent; once they have outsourced a handful of times hiring seems a...
Databáze: OpenAIRE