Transaction cost and its effects towards outsourcing
This paper explores the drawbacks of outsourcing which surfaces from the transaction costs. Coupled with the benefits to the host organisation are the drawbacks which include the information costs, negotiating and bargaining, and the costs of policing and enforcement. The paper is based on a case st...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2006
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| Subjects: | |
| Online Access: | http://eprints.utm.my/10687/ http://eprints.utm.my/10687/1/FaraDivaMustapa2006_Transactioncostanditseffectstowards.pdf |
| _version_ | 1848892151507714048 |
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| author | Mustapa, Fara Diva Hashim, Maizon |
| author_facet | Mustapa, Fara Diva Hashim, Maizon |
| author_sort | Mustapa, Fara Diva |
| building | UTeM Institutional Repository |
| collection | Online Access |
| description | This paper explores the drawbacks of outsourcing which surfaces from the transaction costs. Coupled with the benefits to the host organisation are the drawbacks which include the information costs, negotiating and bargaining, and the costs of policing and enforcement. The paper is based on a case study carried out on the outsourcing of the healthcare support services by the Malaysian Ministry of Health. The case study attempts to generate an understanding on the causes of the significant increase in the operational costs of the abovesaid healthcare support services and relating it to transaction costs. Structured interviews were conducted on those directly involved in the planning, implementing and monitoring of the outsourcing process of the healthcare support services. The findings indicated that bounded rationality, opportunism and asset specificity are the main components of the transaction costs. However, the significant increase in the operational costs of the healthcare support services of the Malaysian Ministry of Health was not entirely due to the effects of the drawbacks of outsourcing. |
| first_indexed | 2025-11-15T21:09:18Z |
| format | Conference or Workshop Item |
| id | utm-10687 |
| institution | Universiti Teknologi Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T21:09:18Z |
| publishDate | 2006 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | utm-106872017-07-30T02:17:30Z http://eprints.utm.my/10687/ Transaction cost and its effects towards outsourcing Mustapa, Fara Diva Hashim, Maizon HG Finance This paper explores the drawbacks of outsourcing which surfaces from the transaction costs. Coupled with the benefits to the host organisation are the drawbacks which include the information costs, negotiating and bargaining, and the costs of policing and enforcement. The paper is based on a case study carried out on the outsourcing of the healthcare support services by the Malaysian Ministry of Health. The case study attempts to generate an understanding on the causes of the significant increase in the operational costs of the abovesaid healthcare support services and relating it to transaction costs. Structured interviews were conducted on those directly involved in the planning, implementing and monitoring of the outsourcing process of the healthcare support services. The findings indicated that bounded rationality, opportunism and asset specificity are the main components of the transaction costs. However, the significant increase in the operational costs of the healthcare support services of the Malaysian Ministry of Health was not entirely due to the effects of the drawbacks of outsourcing. 2006-09 Conference or Workshop Item PeerReviewed application/pdf en http://eprints.utm.my/10687/1/FaraDivaMustapa2006_Transactioncostanditseffectstowards.pdf Mustapa, Fara Diva and Hashim, Maizon (2006) Transaction cost and its effects towards outsourcing. In: Quantity Surveying National Convention, 4-5th Sept. 2006, Sheraton Subang Hotel. http://www.rism.org.my/event/quantity-surveying-international-convention-2016/ |
| spellingShingle | HG Finance Mustapa, Fara Diva Hashim, Maizon Transaction cost and its effects towards outsourcing |
| title | Transaction cost and its effects towards outsourcing |
| title_full | Transaction cost and its effects towards outsourcing |
| title_fullStr | Transaction cost and its effects towards outsourcing |
| title_full_unstemmed | Transaction cost and its effects towards outsourcing |
| title_short | Transaction cost and its effects towards outsourcing |
| title_sort | transaction cost and its effects towards outsourcing |
| topic | HG Finance |
| url | http://eprints.utm.my/10687/ http://eprints.utm.my/10687/ http://eprints.utm.my/10687/1/FaraDivaMustapa2006_Transactioncostanditseffectstowards.pdf |