Manuel Portugal Ferreira () (Instituto Politécnico de Leiria, Portugal) Sungu Armagan () (Florida International University, USA) Dan Li () (Indiana University, USA)
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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.
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Paper provided by globADVANTAGE, Polytechnic Institute of Leiria in its series Working Papers with number
4.