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Vertical Integration For Full Outsourcing: Growth And Internationalization Of A Portuguese Packaging Firm

Author

Listed:
  • Manuel Portugal Ferreira

    (Instituto Politécnico de Leiria, Portugal)

  • Sungu Armagan

    (Florida International University, USA)

  • Dan Li

    (Indiana University, USA)

Abstract

Based on a case study of a Portuguese packaging firm, this paper examines how vertical integration of the supplier serves as a vehicle for the full outsourcing of the client firms' needs in a solution that reduces transaction costs, favors specialization, and permits small and mediumsized firms to develop competencies that may be exploited in a wide array of projects. Vertical integration by the supplier (a governance decision) is a strategic response to changes in the sourcing model of the clients. Client-supplier relationships have inter-spatial and inter-temporal value that surpasses spot market exchanges.

Suggested Citation

  • Manuel Portugal Ferreira & Sungu Armagan & Dan Li, 2007. "Vertical Integration For Full Outsourcing: Growth And Internationalization Of A Portuguese Packaging Firm," Working Papers 4, globADVANTAGE, Polytechnic Institute of Leiria.
    • Handle: RePEc:pil:wpaper:4
    as

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    File URL: https://globadvantage.ipleiria.pt/files/2007/11/working-paper-4_globadvantage.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    strategic outsourcing; vertical integration; internationalization; case study;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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    This paper has been announced in the following NEP Reports:

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