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Outsourcing, Product Quality, and Contract Enforcement

Yi Lu, Travis Ng () and Zhigang Tao

Journal of Economics & Management Strategy, 2012, vol. 21, issue 1, 1-30

Abstract: Does outsourcing compromise product quality? Does sound contract enforcement alleviate this concern? We offer a simple model to illustrate how outsourcing leads to lower product quality and how contract enforcement helps mitigate this problem. These theoretical predictions are borne out of a survey of 2,400 firms in China conducted by the World Bank in 2003.

Date: 2012
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Citations: View citations in EconPapers (11)

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https://doi.org/10.1111/j.1530-9134.2011.00321.x

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