Logistics Outsourcing as Institutional Innovation and a Tool to Optimize Transaction Costs Within Supply Chains

Abstract:

This article investigates the nature of logistics outsourcing as institutional innovation aimed to optimize the administrative and transaction costs within supply chains. By choosing to outsource logistics as their strategy, supply chain actors become able to overcome the resource-linked constraints and to build relationships benefiting all parties involved by getting access to one another’s most critical competencies and information and thus cutting transaction costs across supply chains.

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