Analysis of the international sourcing strategy of European companies under the theory of transaction costs and resource-based view

The main objective of this paper is to empirically test the variables of the theory of transaction costs and resource based view that influence on the decision of internationalization of production processes. A logistic regression with data from companies in 15 European countries was estimated, it was found that an increase in legal or administrative barriers, cultural barriers and concerns of distribution, decrease the likelihood that companies conduct international sourcing. In contrary, an increase in fiscal and financial aspects, increase the likelihood that companies conduct international sourcing.