The theories of transaction cost economics (TCE) and the resource-based view (RBV) have
been applied in studies of outsourcing. The research presented in this study was conducted
to gain an understanding of why firms outsource their value chain activities, using a
combined TCE and RBV perspective. The research assesses how six instant coffee firms in
Brazil perceive the rationale for their outsourcing processes. The authors conclude that the
two theories should be used together to determine a firm's frontiers, and they offer a …