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Tjader, Youxu Cai (2009) MANAGING OUTSOURCING DECISIONS - GOVERNMENT POLICY, FIRM OPTIONS, AND THE ECONOMIC IMPACT. Doctoral Dissertation, University of Pittsburgh. (Unpublished)

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In this research, we provide a comprehensive examination regarding outsourcing policies and decisions by conducting a systematic analysis from macro to micro level. At the macro level, we utilize a BOCR-based (Benefit, Opportunity, Cost, Risk) Analytical Network Process (ANP) model to find the best government policy regarding outsourcing. At the micro level, we carry out a case study to demonstrate how firm level outsourcing decisions can be made. For such, we employ a comprehensive model that consists of the "the BSC-based (Balanced Scorecard) ANP model" to assess the case firm's strategic alternatives and to identify the best option for the studied firm. After recommending the best outsourcing strategy, i.e. selective outsourcing, to the case firm, we then proposed an AHP ratings model for the firm to prioritize the various activities and identify the activities to outsource. Understanding the economic impact of outsourcing can help firms facing outsourcing options to make a better decision. To provide firms with this guidance and the decision-support tool, in chapter 5 of this dissertation we empirically examine the relationship between outsourcing contract size, as reported in news and trade journals, and the firms' financial performance.Using the data from Compustat for those firms that conducted outsourcing, we are able to predict firms' post-outsourcing financial performance, as measured by Tobin's q and the changes in Tobin's q. Besides predicting financial performance, our empirical models also reveal a number of important managerial implications. In the modeling process, we make use of both traditional Least Squares Regression and advanced Machine Learning techniques, such as Regression Tree and Neural Networks.In the research front, our empirical study offers three significant findings: (1) there is a non-linear relationship between outsourcing contract value and the change in Tobin's q; (2) firm's other accounting variables do interact with the outsourcing contract size in affecting the firm's Tobin's q; and (3) outsourcing affects firms differently. In summary, the body of this dissertation consists of the three key areas: macro- and micro-level outsourcing decision making, and financial performance evaluation and prediction.


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Item Type: University of Pittsburgh ETD
Status: Unpublished
CreatorsEmailPitt UsernameORCID
Tjader, Youxu Caiyotst1@katz.pitt.eduYOTST1
ETD Committee:
TitleMemberEmail AddressPitt UsernameORCID
Committee CoChairShang, JenniferSHANG@katz.pitt.eduSHANG
Committee CoChairVargas, Luis GVARGAS@katz.pitt.eduLGVARGAS
Committee MemberTadikamalla, PanduPANDU@katz.pitt.eduPANDU
Committee MemberLi,
Committee MemberSaaty, Thomas LSAATY@katz.pitt.eduSAATY
Date: 30 September 2009
Date Type: Completion
Defense Date: 25 June 2009
Approval Date: 30 September 2009
Submission Date: 27 July 2009
Access Restriction: No restriction; Release the ETD for access worldwide immediately.
Institution: University of Pittsburgh
Schools and Programs: Joseph M. Katz Graduate School of Business > Business Administration
Degree: PhD - Doctor of Philosophy
Thesis Type: Doctoral Dissertation
Refereed: Yes
Uncontrolled Keywords: ANP; BSC; Data Mining; Outsourcing
Other ID:, etd-07272009-211700
Date Deposited: 10 Nov 2011 19:54
Last Modified: 15 Nov 2016 13:47


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