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| Author: | Fontenay, C.C. de Gans, J.S. |
| Title: | A bargaining perspective on strategic outsourcing and supply competition |
| Journal: | Strategic Management Journal
2008 : AUG, VOL. 29:8, p. 819-839 |
| Index terms: | bargaining strategy outsourcing supply competition property rights |
| Freeterms: | resource-based view |
| Language: | eng |
| Abstract: | The outsourcing (henceforth as: outsg.) choice of a downstream (here as: dwnst.) firm with its own upstream (as: upst.) production resources (as: resrs.) or assets is considered. The novelty of the approach is to consider the outsourced function as involving resrs. consistent with the resource-based view. From a bargaining perspective, characterized is a dwnst. firm's decision whether to outsource to an independent or to an established (as: estd.) upst. firm. In so doing, the dwnst. firm faces a trade-off (as: t-o.) btw. lower input costs afforded by independent competition, and higher resource value associated with those who can consolidate upst. capabilities. This t-o. is shown to be resolved in favour of outsg. to an estd. firm. |
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