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Make-Or-Buy Theories: Where Do We Stand?

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Author Info
Rosanna Nisticò () (Dipartimento di Economia e Statistica, Università della Calabria)
Abstract

The aim of this paper is to discuss the state-of-the art and the directions for research on the make-orbuy problem. After thirty years of research efforts, we now have numerous contributions explaining different aspects of the nature and existence of the firm. The search for a unified theory, however, still remains, at a theoretical level, a challenge. The task is not easy, perhaps because the theory of the firm develops along two different strands, one analyzing the factors influencing the boundaries, and the other one relating to the internal structure; or because, even inside the same research strand, it is not really easy to grasp the similarities and differences between contributions that have followed one another in rapid succession over the last few years. This paper examines the theories concerning the make-or-buy problem, focusing on recent contributions that have tried to develop a unified framework and emphasizes the role of incomplete contracts as a common and significant trait of the theories discussed

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File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP02_2008.pdf
File Format: application/pdf
File Function: First version, 2008-12
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Publisher Info
Paper provided by Università della Calabria, Dipartimento di Economia e Statistica in its series Working Papers with number 200802.

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Length: 33 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:clb:wpaper:200802

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Postal: Università della Calabria, Dipartimento di Economia e Statistica, Ponte Pietro Bucci, Cubo 0/C, I-87036 Arcavacata di Rende, CS, Italy
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Web page: http://www.ecostat.unical.it/
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Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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This page was last updated on 2009-12-2.


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