The role of organizational control in outsourcing practices: An empirical study

• The relationship between outsourcing strategy and organizational control.
• Efficiency-seeking outsourcing is linked with output and process control.
• Innovation-seeking outsourcing is linked with process and social control.

Recent case study research has examined the role of organization control as a critical component of outsourcing performance (Kang et al. 2012a. Journal of Business Research 65, 1195–1201). In contrast to case study methodology, this paper aims to empirically examine the relationships among outsourcing strategies and organizational control in the Chinese context and refine the theoretical and managerial implications of the current research model. Based on data collected from 158 firms operating in China, this paper examines the impact of two types of outsourcing strategies on different organizational control measures. Our findings suggest that for efficiency-seeking outsourcing, output control and process control are appropriate in creating successful outsourcing practices. As for innovation-seeking outsourcing, social control and process control are the most effective options. Theoretical and managerial implications for strategic outsourcing are also discussed.