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| Author: | Anderson, S.W. Glenn, D. Sedatole, K.L. |
| Title: | Sourcing parts of complex products: evidence on transactions costs, high-powered incentives and ex-post opportunism |
| Journal: | Accounting, Organizations and Society
2000 : NOV, VOL. 25:8, p. 723-749 |
| Index terms: | CAR INDUSTRY COMPLEXITY INCENTIVES TRANSACTION COSTS USA |
| Language: | eng |
| Abstract: | This paper revists evidence on the correlates of sourcing decisions in the US auto industry to see whether adoption of new contracting terms and early involvement of suppliers in design activities (e.g. "relational contracting") yields different results as compared to previous findings. Using data on 156 sourcing decisions for process tooling (dies) of a new car program the authors find that under the new relational contracting regime, transaction cost theory continues to have explanatory power for sourcing decisions; however, attributes that favored insourcing in previous studies favor outsourcing in this setting. |
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