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The majority of make or buy decisions are invoked in the name of “cost”, but the two case studies outlined in this paper demonstrate that cost is only one of a multitude of criteria which managers need to evaluate in this strategic decision. Also highlighted are the difficulties in ascertaining the cost elements in the make or buy decision. The sequence of events by which these two make or buy decisions were resolved are analysed, together with the levels and functions in the company organisation structure which determined the direction taken by the make or buy investigation. The case studies also indicate the very active role of purchasing in the make or buy decisions, their being involved in around 90 per cent of the decision stages.

The purpose of this paper is to seek to contribute to the assessment of the impact of a number of decision-making criteria in resolving tactical make-or-buy issues in enterprises operating in Greece. Moreover, it sheds light on the relationship between the impact of each criterion and a number of independent variables.

Initially, depth interviews were made with purchasing managers in ten industrial firms operating in Greece. The findings of these interviews and the review of the pertinent literature provided the basis for the questionnaire design. Then, a copy of the questionnaire and a prepaid self-addressed return envelope were mailed to a stratified sample of 300 industrial firms operating in Greece. By the end of this process, 85 questionnaires were received, representing a 28.3 percent response rate.

Cost and quality appear to be the criteria with the most impact, which indicates that companies usually resolve tactical make-or-buy issues in order to achieve short-term cost savings or operational advantage. The emphasis placed upon the other criteria tends to vary with the situation under which the particular make-or-buy issue is resolved.

It develops a more precise assessment of the impact of each make-or-buy decision-making criterion and investigates the relationship between this impact and a number of independent variables.

The purpose of this paper is to investigate the nature of functional involvement in the cross‐functional make or buy decision process.

The paper is based on literature within the areas of cross‐functional make or buy decision processes as well as cross‐functional process research in general. The empirical part of the paper is a longitudinal and in‐depth case study, where the data are collected using interviews, documentation and observations. The data are analyzed using chronological patterns.

Findings indicate a changing pattern between close collaborative integration during decision‐making phases and more interaction‐focused integration during data‐gathering phases. The benefits of this integration pattern mainly lay in the effective use of resources combined with increased decision quality.

The results are based on a large manufacturing company that produces complex products. It can be suggested that the scene researched by the authors may be common for companies in the same environment. However, it is a limited sample and future research would benefit from investigating different environments to establish whether the results are context‐specific or not.

Five phases are found in the make or buy decision process where resources are used differently. Also, different functions have different roles during these phases in order not to drain resources.

The paper helps clarify how functions integrate and use resources during different phases of the make or buy decision process and the cross‐functional benefits and effects. A conceptual model is developed that explains the effect of functional involvement during different types of integration.

The purpose of this paper is to determine the dimensions along which make or buy decision processes change over time.

The paper is based on a longitudinal in‐depth case study of a large industrial company, where the data were collected using interviews, documentation and observations. The data were analyzed using chronological patterns, and findings were then compared with the literature on make or buy decision processes.

Nine dimensions were found along which the make or buy decision process had changed over time. The dimensions were cross‐functionality, structure, regularity, formality, awareness, mandatory, information distribution and management and flexibility. The causes of the changes were related to a combination of company internal and external events and contexts.

The findings should be seen as a first attempt in assisting in the creation of a foundation for constructing more dynamic make or buy decision process models. However, since the findings are based on a single case, they need to be complemented by more research in order to help determine how context sensitive the identified dimensions are.

The nine dimensions of change can be used as a checklist for managers in designing their decision process.

The paper adds to existing research, which takes a static viewpoint and does not include a dynamic perspective, in that, the longitudinal nature of our research creates opportunities for developing more dynamic make or buy decision process models. The paper clarifies how make or buy decision processes develop over time, and how they cannot be seen as a one‐time implementation but rather as a process that needs both structure and flexibility.

The purpose of this paper is to explore the area of process ownership and management in cross‐functional make‐or‐buy decision processes.

Multiple case studies are used including both a longitudinal in‐depth case study and two retrospective case studies. The data were analyzed using cross‐case comparison as well as analysis through existing literature in the field of make‐or‐buy decision processes, after which propositions for further research were developed.

The propositions found concern in the fact that the function being responsible for the industrial network also should own the decision process. Letting research and development become a more powerful decision maker and distinguish between different types of make‐or‐buy decisions are also important aspects to consider.

The findings are a first attempt in creating a foundation for future research in the area of process ownership and management of make‐or‐buy decisions. A future need to further develop these propositions is essential.

The function mostly affected by the outcome of the decision should be in charge of the process, and should also be process manager. The process owner should create awareness of different types of make‐or‐buy decisions.

Recently, make‐or‐buy decision processes are considered strategic decision processes, but neither in research nor industry is it clear who should own and manage these decision processes. The paper stretches this fact and brings forth possible owners.

The make‐or‐buy question represents a fundamental dilemma faced by many companies. Companies have finite resources and cannot always afford to have all manufacturing technologies in‐house. This has resulted in an increasing awareness of the importance of make‐or‐buy decisions. This paper reports on the development of a make‐or‐buy framework to address the make‐or‐buy decision for either a specific individual part or family of parts. Firstly, a literature review of the principal make‐or‐buy approaches is discussed. Secondly, the development of a make‐or‐buy framework is described and the framework is explained and illustrated using case studies. Thirdly, the operationalisation of the framework is outlined. The paper concludes with a discussion of its contribution to both the academic understanding of the subject, and the improvement of industrial practice.

Illustrates that the make or buy is a strategic decision and has implications for the overall corporate strategy of the organization by describing a model which involves analysing a number of strategic factors. In recent years, many companies have been moving significantly away from “making” towards “buying”. However, research has revealed that make or buy decisions are rarely taken within a thoroughly strategic perspective. It has been shown that many firms adopt a short‐term perspective and are motivated primarily by the search for short‐term cost reductions. It is argued that make or buy decisions are made most frequently by default with little consideration for the long‐run competitiveness of the organization. Presents an outline of three key problems encountered by companies in their efforts to formulate an effective make or buy decision to illustrate the weaknesses in current make or buy practice. The make or buy model described in this article attempts to overcome these problems by offering an organization a conceptual framework to follow in the sourcing decision.

Discusses a hybrid computer‐based system designed to assist companies in the make or buy decision, which is arguably the most fundamental component of manufacturing strategy. The system employs both case‐based reasoning (CBR) and decision support system components including multi‐attribute analysis (MAA) and sensitivity analysis. As part of the development process, interviews were conducted with managers in ten multinational companies in order to determine current make or buy practice and elicit opinions on how the decision‐making process would be enhanced. The consensus was that a formal structure was needed along with computerised support at various stages in the process. The model was developed conceptually from the analysis of these interviews with procurement managers and also through a thorough literature survey. The next stage was to implement the most important components of the system to enable feedback from procurement managers in one of the multinationals first interviewed. The results indicate that the system supports the procurement function in evaluating the make or buy decision and has led to enhanced communication with suppliers as well as within the multi‐functional procurement team.

In the present study a model based on trust relations and transaction cost analysis has been applied to explain the make‐or‐buy decision for accounting services. The present model of efficient boundaries, which combines the focus on trust relations with the transactional focus on frequency and asset specificity, has predictive power of the governance of accounting services. The effects of asset specificity on the make‐or‐buy decision of accounting services were substantially overshadowed by the relational attribute of trust and the transactional attribute of frequency. The study reveals strong support for the hypothesized positive link between trust and the buy alternative and the negative association between frequency of accounting transactions and the buy alternative. The present model has predictive power for an overall correct classification of the make‐or‐buy decision for accounting services.

The purpose of this paper is to outline how rapid manufacturing (RM) could influence the decision‐making process for managers involved in make or buy decisions.

A literature review on make or buy issues has been carried out and the results of which have been distilled into a number of qualitative considerations. These considerations have been formed into three possible make or buy scenarios: the firm has no experience of rapid prototyping (RP) or RM; the firm already has an RP department; and the firm already has an RM function. In order to analyse the decision further a quantitative approach has been taken, mainly adapted to the last scenario but applicable also to the second scenario. Here, manufacturing cost data has been directly compared with price information from two current RP bureaus. The differences between RM cost and RP price have been studied.

Strategically, the points analysed were in favour of the make option. Economically, the lack of dedicated RM bureaus and the consequent use of RP costing has further pushed the make or buy decision in favour of make.

There is a lack of work on the implementation of RM as a mainstream manufacturing process. Existing knowledge has begun to look at the use and costs of RM, however, this paper highlights the lack of dedicated RM providers.