Conceptualising the dimensions of sourcing strategy: a governance‐based approach
Source: International Journal of Value Chain Management, Volume 2, Number 2, 28 March 2008 , pp. 206-226(21)
Publisher: Inderscience Publishers
Abstract:The application of the transaction cost economics based governance framework as a tool for developing sourcing strategy has received limited attention in the literature so far. Synthesising previous literature and analysing multiple‐case study data from 16 subcontracting partnerships in the Finnish metal and electronics industries, this paper develops a conceptual framework defining and empirically illustrating the subdimensions constituting each of the commonly discussed governance mechanisms: price, authority and social governance. In so doing, the paper provides a conceptual basis for future research, and a basis for the development of a management tool for structuring the process of developing a coherent sourcing strategy.
Document Type: Research Article
Publication date: 2008-03-28