Should we make or buy? An update and review

• Rubén Medina Serrano ^[1] ; María Reyes González Ramírez ^[1] ; José Luis Gascó Gascó ^[1]
  1. [1] Universitat d'Alacant

     Universitat d'Alacant

     Alicante, España

     
• Localización: European Research on Management and Business Economics, ISSN 2444-8834, Vol. 24, Nº. 3, 2018, págs. 137-148
• Idioma: inglés
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• Resumen

  • Whether firms should perform manufacturing activities on their own or buy them from an external provider is a strategic question that many managers from all firm areas have historically asked themselves. The present paper seeks to address this question by developing a theoretical framework which can help managers evaluate sourcing decisions. After discussing a make-or-buy literature review on 7 prestigious academic journals, the most relevant determinants and theories supported from the literature are identified and illustrated within this framework. The results are subsequently outlined, our research work concluding with a reflection on the extent to which this paper can improve the academic understanding of make-or-buy approaches. Our results suggest that practitioners should combine the resource-based view, strategic management and transaction cost economics theories in order to assess manufacturing location decisions.