Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
480584 | European Journal of Operational Research | 2010 | 10 Pages |
Abstract
In this paper, we highlight an aspect of supplier opportunism in the outsourcing paradox that has largely been ignored by extant research – the supplier as a direct competitor of the buyer firm. In light of this paradox, we offer a game-theoretic framework in which we identify conditions under which firms could alleviate or mitigate this outsourcing problem. Our results show that apart from transaction costs, firm-level capabilities (both ordinary and dynamic) play important roles in determining the make only, buy only, or make-and-buy options a firm could exercise in countering the threat of the supplier as a potential competitor in the downstream marketplace.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Wei Shi Lim, Soo Jiuan Tan,