VERTICAL INTEGRATION FOR FULL OUTSOURCING: GROWTH AND INTERNATIONALIZATION OF A PORTUGUESE PACKAGING FIRM

Manuel Ferreira (manuel.portugal.ferreira@gmail.com), Sungu Armagan (sungu.armagan@business.fiu.edu) and Dan Li (lid@indiana.edu)
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Sungu Armagan: Florida International University, USA
Dan Li: Indiana University, USA

No 4, Working Papers from globADVANTAGE, Polytechnic Institute of Leiria

Abstract: Based on a case study of a Portuguese packaging firm, this paper examines how vertical integration of the supplier serves as a vehicle for the full outsourcing of the client firms' needs in a solution that reduces transaction costs, favors specialization, and permits small and mediumsized firms to develop competencies that may be exploited in a wide array of projects. Vertical integration by the supplier (a governance decision) is a strategic response to changes in the sourcing model of the clients. Client-supplier relationships have inter-spatial and inter-temporal value that surpasses spot market exchanges.

Keywords: strategic outsourcing; vertical integration; internationalization; case study (search for similar items in EconPapers)
JEL-codes: M1 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2007-09
New Economics Papers: this item is included in nep-com, nep-cse and nep-ppm
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Persistent link: https://EconPapers.repec.org/RePEc:pil:wpaper:4

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