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Article
Publication date: 5 May 2015

Socrates John Moschuris

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…

3162

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

EuroMed Journal of Business, vol. 10 no. 1
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 21 August 2009

Anna Moses and Pär Åhlström

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

4250

Abstract

Purpose

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

Design/methodology/approach

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

Findings indicate a changing pattern between close collaborative integration during decisionmaking 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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

International Journal of Operations & Production Management, vol. 29 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 November 2000

L.E. Cánez, K.W. Platts and D.R. Probert

The makeorbuy question represents a fundamental dilemma faced by many companies. Companies have finite resources and cannot always afford to have all manufacturing technologies…

12662

Abstract

The makeorbuy 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 makeorbuy decisions. This paper reports on the development of a makeorbuy framework to address the makeorbuy decision for either a specific individual part or family of parts. Firstly, a literature review of the principal makeorbuy approaches is discussed. Secondly, the development of a makeorbuy 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.

Details

International Journal of Operations & Production Management, vol. 20 no. 11
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 March 1984

B.G. Dale and M.T. Cunningham

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…

Abstract

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.

Details

International Journal of Operations & Production Management, vol. 4 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 19 September 2008

Anna Moses and Pär Åhlström

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

3309

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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

Originality/value

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.

Details

Strategic Outsourcing: An International Journal, vol. 1 no. 3
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 1 March 1988

John Cheese, Abby Day and Gordon Wills

An updated version of the original (1985) text, the book covers all aspects of marketing and selling bank services: the role of marketing; behaviour of customers; intelligence…

3626

Abstract

An updated version of the original (1985) text, the book covers all aspects of marketing and selling bank services: the role of marketing; behaviour of customers; intelligence, planning and organisation; product decisions; promotion decisions; place decisions; price decisions; achieving sales. Application questions help to focus the readers' minds on key issues affecting practice.

Details

International Journal of Bank Marketing, vol. 6 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 9 August 2011

Anna Moses

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

1795

Abstract

Purpose

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

Design/methodology/approach

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 makeorbuy decision processes, after which propositions for further research were developed.

Findings

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 makeorbuy decisions are also important aspects to consider.

Research limitations/implications

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

Practical implications

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 makeorbuy decisions.

Originality/value

Recently, makeorbuy 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.

Details

Management Research Review, vol. 34 no. 9
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 1 March 1997

R.T. McIvor, P.K. Humphreys and W.E. McAleer

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…

9457

Abstract

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.

Details

Management Decision, vol. 35 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 September 2000

R.T. McIvor and P.K. Humphreys

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…

4479

Abstract

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 decisionmaking 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.

Details

Integrated Manufacturing Systems, vol. 11 no. 5
Type: Research Article
ISSN: 0957-6061

Keywords

Article
Publication date: 1 December 2000

Lars Fallan

In the present study a model based on trust relations and transaction cost analysis has been applied to explain the makeorbuy decision for accounting services. The present model…

Abstract

In the present study a model based on trust relations and transaction cost analysis has been applied to explain the makeorbuy 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 makeorbuy 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 makeorbuy decision for accounting services.

Details

Journal of Applied Accounting Research, vol. 6 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

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