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Determinants and Management of Make-and-Buy

An Extension to Transaction Cost Economics

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  • © 2009

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Part of the book series: Beiträge zur betriebswirtschaftlichen Forschung (BBFDUV)

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Table of contents (7 chapters)

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About this book

Foreword In her dissertation Anna Krzeminska deals with the determinants and the management of make-and-buy decisions. Make-and-buy describes the simultaneous use of in-house prod- tion and external procurement of a good or service. Today make-and-buy can be found in many industries and corporate sectors; the simultaneous use of in-house production and external procurement can, for example, be found in the automotive, telecommunications, and IT industry, as well as in pharmaceutical research-and-development projects, the assignment of sales representatives, and in franchising businesses. Make-or-buy, in contrast, refers to the decision between the alternatives of in-house production versus external procurement (e.g. Boerner and Macher 2002) and has been studied extensively. Studies relating to the ma- and-buy perspective, however, are rare. Anna Krzeminska approaches this gap in the literature in the here presented thesis by investigating determinants, management, and performance implications of make-and-buy. Firstly, Anna Krzeminska reviews the existing research on make-and-buy. She points out that, in spite of a thorough literature research, merely 17 contributions on make-and-buy in the industrial purchasing context could be identified over the last 30 years. Analyzing the existing literature, she discovers an interesting paradox: while there is no evident consensus in the literature on whether transaction cost economics (TCE) is a useful approach to explain ma- and-buy, she finds that TCE is by far the predominant approach used to explain this phe- menon. Against this background she proceeds by systematically scrutinize the potential of TCE to explain make-and-buy.

About the author

Anna Krzeminska war als wissenschaftliche Mitarbeiterin an den Universitäten Mainz und Paderborn sowie als freie wissenschaftliche Mitarbeiterin an der Freien Universität Berlin tätig, wo sie bei Prof. Dr. Thomas Mellewigt am Institut für Management promovierte. Als Junior Professorin lehrt und forscht sie derzeit an der University of Technology in Sydney, Australien.

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