3Cs method for firms' make-or-buy decisions: application in a large metal mechanical company

Luciana Paula Reis, June Marques Fernandes, Sergio Evangelista Silva and Henrique Aguiar De Andrade

International Journal of Business Innovation and Research, 2018, vol. 17, issue 4, 494-515

Abstract: The core competencies literature states that a company should outsource any activity that is not aligned with its core business. However, a deeper analysis of this literature expresses the need for a more comprehensive method to guide this decision. This study introduces a method for analysing the make-or-buy decision based on three constructs: cost, customer value, and competencies. This so-called 3Cs method was applied in a large company in the metal mechanical industry to assess the best way in which to perform the core activities of this firm. The main contribution of this study is presenting an integrated approach that allows a deeper understanding of make-or-buy decisions, thereby raising their efficiency.

Keywords: outsourcing; analysis method; production costs; customer value; strategic vulnerability. (search for similar items in EconPapers)
Date: 2018
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