BOT Outsourcing Contracts: Boon or Bane to Emerging Market Vendor Firms?

    Publikation: Bidrag til bog/antologi/rapportKonferenceabstrakt i proceedingsForskningpeer review

    Abstract

    Build-operate-transfer (BOT) contracting has been widely usen in the engineering and construction industry, but has only recently been introduced in services industry domains. Notably, service provider firms from emerging
    markets have recently started offering BOT outsourcing contracts. In this paper we investigate under which circumstances a BOT outsourcing contract (i.e. a contract where the client firm exercises its call option) is beneficial, or the opposite, to the emerging market vendor firm. We draw on various theoretical literatures (transaction cost economics, real options, inter-firm linkages) and develop three scenarios for the implications for vendor firms. We find that BOT contracts, under certain circumstances, may imply benefits of process and
    knowledge upgrading for the emerging market vendor firm. However, given different sets of circumstances, engaging in a BOT contract carries important competitive risks for the vendor firm, in terms of a gradual downgrading of the vendor firm's role in the collaboration with clients, and the ensuing hollowing out of knowledge competences.
    OriginalsprogEngelsk
    TitelProceedings of the 54rd Annual Meeting of the Academy of International Business
    RedaktørerSusan Feinberg, Tunga Kiyak
    UdgivelsesstedEast Lansing, MI
    ForlagAcademy of International Business
    Publikationsdato2012
    Sider206
    StatusUdgivet - 2012
    BegivenhedAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, USA
    Varighed: 30 jun. 20123 jul. 2012
    Konferencens nummer: 54
    http://aib.msu.edu/events/2012/

    Konference

    KonferenceAIB 2012 Annual Meeting
    Nummer54
    LokationGeorge Washington University and University of Maryland
    Land/OmrådeUSA
    ByWashington
    Periode30/06/201203/07/2012
    Internetadresse
    NavnAcademy of International Business. Annual Meeting. Proceedings
    Vol/bind54
    ISSN2078-4430

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