Influence of Social Network to Outsource Management and Evolution

Transaction cost and core competitiveness ignore the effects of society network in some extent when they trying to explain outsourcing. This article divides social network into two parts: relational embeddedness social network and structural embeddedness social network. Then it analyzes the effects of those two types of social network to outsourcing constructing and management. Relational embeddedness social network playing an important role in outsource constructing, while structural embeddedness social network has great impact on outsource management. Structural embeddedness social network usually can be divided into three stages: calculating, understanding, and recognizing, and it using different methods to manage each stage.