Vertical Integration for Full Outsourcing: Growth and Internationalization of a Portuguese Packaging Firm
نویسندگان
چکیده
Based on a case study of a Portuguese packaging firm, this paper examines how vertical integration of the supplier serves as a vehicle for the full outsourcing of the client firms' needs in a solution that reduces transaction costs, favors specialization, and permits small and medium-sized firms to develop competencies that may be exploited in a wide array of projects. Vertical integration by the supplier (a governance decision) is a strategic response to changes in the sourcing model of the clients. Client-supplier relationships have inter-spatial and inter-temporal value that surpasses spot market exchanges.
منابع مشابه
The Process of Vertical Dis-integration: an Evolutionary Perspective on Outsourcing
It is argued that an evolutionary perspective on firm boundaries with its strong focus on knowledge, as well as processes of search, learning and capability development is instrumental in developing a theory of firm boundaries that is close to managerial concerns. Building on insights in evolutionary economics, propositions are developed regarding scope, speed, and switching costs in the proces...
متن کاملVertical Integration Versus Outsourcing: A Knowledge-Based Reconciliation
In vertical integration literature, controversy remains over how organizational cost changes after vertical integration and how technological uncertainty influences vertical integration decisions. To reach a reconciliation, I draw on knowledge-based view of the firm (Grant, 1996, 1998; Spender, 1996, 1998), and propose a contingency model that examines moderating effects of knowledge absorptive...
متن کاملVertical Integration and Bank Performance
This paper examines vertical integration and its impact on profitability and shareholder value in the global banking industry. We derive a measure for vertical integration using a sample of 859 banks from 9 Anglo-Saxon and European countries covering the timeframe 1997-2002. Our results suggest that banks either operating on highly integrated or highly disintegrated levels of vertical integrati...
متن کاملMake or Buy in a Mature Industry? Models of Client- supplier Relationships under TCT and RBV Perspectives
In this paper, we use the transaction cost theory [TCT] and the resource-based view [RBV] to discuss three propositions on the models of client-supplier relationships in mature industries. The two theories seem to advance different organizational forms of the client-supplier relationships, and in some instances are contradictory. How should firms organize to prosper and grow, namely in the inte...
متن کاملAnalyzing the Impact of Interaction Processes on the Relationship Between Firm ’s Capabilities and Outsourcing Success of Information Technology ( case study: higher education centers of Isfahan)
Nowadays, firm have realized the importance of information technology as an essential tool for the success of business. Accessing the applicability of information technology might be the main expectation of the firm for outsourcing. By outsourcing, firms can have access to advanced technologies and use external sources for their goal. The aim of this study is to analyze the impact of interactio...
متن کامل