Title: Conceptualising the dimensions of sourcing strategy: a governance-based approach

Authors: Marko Kohtamaki, Teemu Kautonen

Addresses: Department of Management, University of Vaasa, P.O. Box 700, FI-65101 Vaasa, Finland. ' Department of Management, University of Vaasa, P.O. Box 700, FI-65101 Vaasa, Finland

Abstract: The application of the transaction cost economics based governance framework as a tool for developing sourcing strategy has received limited attention in the literature so far. Synthesising previous literature and analysing multiple-case study data from 16 subcontracting partnerships in the Finnish metal and electronics industries, this paper develops a conceptual framework defining and empirically illustrating the subdimensions constituting each of the commonly discussed governance mechanisms: price, authority and social governance. In so doing, the paper provides a conceptual basis for future research, and a basis for the development of a management tool for structuring the process of developing a coherent sourcing strategy.

Keywords: subcontracting partnerships; sourcing strategy; governance; comparative case study; supply chain management; SCM; Finland; transaction cost economics; metals industry; electronics industry.

DOI: 10.1504/IJVCM.2008.017743

International Journal of Value Chain Management, 2008 Vol.2 No.2, pp.206 - 226

Published online: 28 Mar 2008 *

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