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Do make or buy decisions matter? The influence of organizational governance on technological performance

Abstract : This paper investigates how firms' decisions to outsource or internalize production affect their technological performance. While several popular arguments and some anecdotal evidence suggest a direct association between outsourcing and technological performance, the effects of firms' governance decisions are likely to be contingent upon several specific attributes underlying a given exchange. This paper first demonstrates how standard performance models can improperly suggest a positive relationship between firms' outsourcing decisions and their technological performance. Models that account for firm- and transaction-specific features are then presented, which indicate that neither outsourcing nor internalization per se result in superior performance; rather, a firm's technological performance is contingent upon the alignment between firms' governance decisions and the degree of contractual hazards. Copyright © 2002 John Wiley & Sons, Ltd.
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Submitted on : Thursday, February 18, 2010 - 9:49:05 AM
Last modification on : Saturday, June 25, 2022 - 10:50:30 AM

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Frédéric Dalsace, Michael J. Leiblein, Jeffrey J. Reuer. Do make or buy decisions matter? The influence of organizational governance on technological performance. Strategic Management Journal, Wiley, 2002, Vol.23, n°9, pp. 817-833. ⟨10.1002/smj.259⟩. ⟨hal-00457649⟩

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