Make or Buy in a Mature Industry? Models of Clientsupplier Relationships under TCT and RBV Perspectives
Make or Buy in a Mature Industry? Models of Clientsupplier Relationships under TCT and RBV Perspectives
Autor Correspondente: Manuel Portugal Ferreira | [email protected]
Palavras-chave: client-supplier relationship models, outsourcing, tct, rbv, strategic governance
Resumos Cadastrados
Resumo Inglês:
In this paper, we use the transaction cost theory [TCT] and the resource-based view [RBV] to discuss three
propositions on the models of client-supplier relationships in mature industries. The two theories seem to
advance different organizational forms of the client-supplier relationships, and in some instances are
contradictory. How should firms organize to prosper and grow, namely in the international markets? Through the
case study of three Portuguese packaging firms, with primary (interviews) and secondary data, we discuss how
the three firms deploy three distinct strategic organization models in a mature industry. One firm utilizes marketbased
governance mechanisms, and concentrates its production in a few selected locations. Another firm
vertically integrates almost the entire value chain of the product to provide full service to its clients. The third
firm operates in a model of integrated outsourcing, with the installation wall to wall with its clients. The clientsupplier
models adopted by these firms are based on efficient, stable, and trustworthy relationships that permit
them to focus on their core competences and reduce transaction costs. The superior performance of firms
requires a proper alignment of hierarchical and relational governance, taking the dimensions of their transactions
into consideration.
