Factors Impacting the Decision to Purchase Parts and Components, Rather than Manufacture them in the Conditions of the Covid-19 Pandemic

Plamena Milusheva

Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, 2022, vol. 11, issue 3, 64-68

Abstract: Under conditions of blocked main hubs, frozen container traffic, high container freight rates, difficult deliveries and a number of other shocks accompanying the Covid-19 crisis, businesses were faced with a number of challenges to which they had to adapt. In this regard, the factors that influence the decision not to produce, but to purchase parts and components under the new conditions, have also aroused interest. This aspect is related to the make-or-buy strategic decision, where a choice is made between producing materials or purchasing them from an external supplier. The aim of this article is both to highlight the importance of a group of factors that influence the decision of companies to buy parts and components, rather than produce them independently, and to make an attempt to compare the importance of these factors in different periods, namely before and during the Covid - 19 crisis. The assertion is that the degree of importance of the factors that are taken into account in the decision not to manufacture but to buy parts and components is different in each individual situation.

Keywords: Pandemic; produce; buy; suppliers (search for similar items in EconPapers)
JEL-codes: A1 (search for similar items in EconPapers)
Date: 2022
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