Author/Authors :
kemikkiran, nurcan başkent üniversitesi - yönetim ve organizasyon doktora programı öğrencisi, Turkey
Abstract :
In this study, “make” or “buy” decision of organizations is examined according to the propositions of transaction costs theory, strategical management and resource based view. Uncertainty, asset specifity, opportunism and coordination requirements in this decision are evaluated by the hyopthesis’of the two main theories namely Transaction Costs Theory (TCT) and Resource Based View (RBV). Since “make” decision refers to the vertical integration and “buy” decision refers to the outsourcing strategy, vertical integration, outsourcing and debates in these methods are together adressed with the advantages and disadvantages . It is deduced that uncertainty, asset specifity, opportunism and coordination requirements, together or separately, will affect the governance mechanism choice in favor of vertical integration. Furthermore, it is pointed out that “risk perception” is one of the main factors in this decision as in all other decisions and it is progressed a proposal to decrease concerning systematic risks.
NaturalLanguageKeyword :
Vertical Integration , Outsourcing , Transaction Costs , Resource Based View , Risks.
