Title
Valuate Outsourcing Contracts From Vendors' Perspective: A Real Options Approach
Abstract
To date, most applications of real options theory (ROT) in outsourcing literature are modeled from the clients' side. Little attention has been paid to vendors' options in outsourcing. In this article, we study outsourcing from the vendors' perspective by analyzing vendors' value of waiting. The contribution of our research to the literature lies in our analysis of a model that compensates for vendors' loss of option to wait since they have to exercise outsourcing contracts at clients' given timing. Such a compensation-oriented model yields new insights about the vendors' valuation of outsourcing opportunities, and offers important practical guidance to vendors' decision making.
Year
DOI
Venue
2008
10.1111/j.1540-5915.2008.00197.x
DECISION SCIENCES
Keywords
Field
DocType
mathematical models
Economics,Outsourcing,Valuation (finance),Operations management,Knowledge process outsourcing
Journal
Volume
Issue
ISSN
39
3
0011-7315
Citations 
PageRank 
References 
15
0.71
9
Authors
3
Name
Order
Citations
PageRank
Bin Jiang1232.70
Tao Yao2938.93
Baichun Feng3171.50