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Investment-Based Sourcing Models

In: Strategic Sourcing in the New Economy

Author

Listed:
  • Bonnie Keith
  • Kate Vitasek
  • Karl Manrodt
  • Jeanne Kling

Abstract

In chapters 4 to 6, we discussed five different Sourcing Business Models, all relying on suppliers to ensure availability of particular products or services. This chapter is devoted to investment-based models that organizations can use when they want to “make” versus “buy.” According to Oliver Williamson, organizations that select a make or insource strategy select a structure that, by default, creates a hierarchy. We think of insource decisions in terms of investment-based models because organizations consciously open their wallets to invest in the capabilities needed for securing supply sources for goods and services.

Suggested Citation

  • Bonnie Keith & Kate Vitasek & Karl Manrodt & Jeanne Kling, 2016. "Investment-Based Sourcing Models," Palgrave Macmillan Books, in: Strategic Sourcing in the New Economy, chapter 0, pages 159-188, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-55220-4_8
    DOI: 10.1007/978-1-137-55220-4_8
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