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| Author: | Anerson, E. Weitz, B. A. |
| Title: | Make-or-buy decisions: Vertical integration and marketing productivity. (!TRANSACTION COST ANALYSIS) |
| Journal: | Sloan Management Review
1986 : SPRING, VOL. 27:3, p. 3-19 |
| Index terms: | MARKETING CHANNELS VERTICAL INTEGRATION COST BENEFIT ANALYSIS |
| Language: | eng |
| Abstract: | In marketing make or buy (vertically integrate or contract out) decisions arises in the formulation of advertisement,sales force management,and distribution strategies. A framework is proposed for determining the most efficient method for performing these marketing functions. In this framework, based largely on transaction cost analysis,efficiency is a function of governance mode (make or buy), scale economics,company-specific capabilities, the ability to monitor performance, free-ridding potential,and environmental uncertainty. These constructs are defined and operationalized in form of questions to analyze vertical integration issues. |
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