Investment-Based Sourcing Models
In chapters 4 to 6, we discussed five different Sourcing Business Models, all relying on suppliers to ensure availability of particular products or services. This chapter is devoted to investment-based models that organizations can use when they want to “make” versus “buy.” According to Oliver Williamson, organizations that select a make or insource strategy select a structure that, by default, creates a hierarchy. We think of insource decisions in terms of investment-based models because organizations consciously open their wallets to invest in the capabilities needed for securing supply sources for goods and services.
KeywordsJoint Venture United Arab Emirate Core Competency Business Group Business Unit
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