Open AccessA theory for industrial make-buy decisions?
Author(s) -
D. R. Snaddon,
D. R. Probert
Publication year - 1999
Publication title -
suid-afrikaanse tydskrif vir ekonomiese en bestuurswetenskappe/south african journal of economic and management sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.277
H-Index - 17
eISSN - 2222-3436
pISSN - 1015-8812
DOI - 10.4102/sajems.v2i3.2589
Subject(s) - theory of the firm , business , industrial organization , economics
After an introduction, the authors derive some common industrial make-buy situations. Six prominent economic theories of the firm are then outlined, before setting criteria to select the most appropriate economic theory for deciding when to make and when to buy. An augmented transactions cost theory may we1l be the most secure basis for a manager, in an industrial setting, to decide what to make within, and what to buy outside, the firm.