Investment-Based Sourcing Models

Bonnie Keith, Kate Vitasek, Karl Manrodt and Jeanne Kling

Chapter Chapter 7 in Strategic Sourcing in the New Economy, 2016, pp 159-188 from Palgrave Macmillan

Abstract: Abstract In chapters 4 to 6, we discussed five different Sourcing Business Models, all relying on suppliers to ensure availability of particular products or services. This chapter is devoted to investment-based models that organizations can use when they want to “make” versus “buy.” According to Oliver Williamson, organizations that select a make or insource strategy select a structure that, by default, creates a hierarchy. We think of insource decisions in terms of investment-based models because organizations consciously open their wallets to invest in the capabilities needed for securing supply sources for goods and services.

Keywords: Joint Venture; United Arab Emirate; Core Competency; Business Group; Business Unit (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-55220-4_8

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DOI: 10.1007/978-1-137-55220-4_8

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