Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

A Bargaining Perspective on Strategic Outsourcing and Supply Competition

Catherine C. De Fontenay and Joshua S. Gans
Strategic Management Journal
Vol. 29, No. 8 (Aug., 2008), pp. 819-839
Published by: Wiley
Stable URL: http://www.jstor.org/stable/20142062
Page Count: 21
  • Download ($42.00)
  • Subscribe ($19.50)
  • Cite this Item
A Bargaining Perspective on Strategic Outsourcing and Supply Competition
Preview not available

Abstract

This article considers the outsourcing choice of a downstream firm with its own upstream production resources or assets. The novelty of the approach is to consider the outsourced function as involving resources consistent with the resource-based view of the firm. From a bargaining perspective, we characterize a downstream firm's decision whether to outsource to an independent or to an established upstream firm. In so doing, the downstream firm faces a trade-off between lower input costs afforded by independent competition, and higher resource value associated with those who can consolidate upstream capabilities. We show that this trade-off is resolved in favor of outsourcing to an established firm.

Page Thumbnails

  • Thumbnail: Page 
[819]
    [819]
  • Thumbnail: Page 
820
    820
  • Thumbnail: Page 
821
    821
  • Thumbnail: Page 
822
    822
  • Thumbnail: Page 
823
    823
  • Thumbnail: Page 
824
    824
  • Thumbnail: Page 
825
    825
  • Thumbnail: Page 
826
    826
  • Thumbnail: Page 
827
    827
  • Thumbnail: Page 
828
    828
  • Thumbnail: Page 
829
    829
  • Thumbnail: Page 
830
    830
  • Thumbnail: Page 
831
    831
  • Thumbnail: Page 
832
    832
  • Thumbnail: Page 
833
    833
  • Thumbnail: Page 
834
    834
  • Thumbnail: Page 
835
    835
  • Thumbnail: Page 
836
    836
  • Thumbnail: Page 
837
    837
  • Thumbnail: Page 
838
    838
  • Thumbnail: Page 
839
    839