Conceptualising the dimensions of sourcing strategy: a governance-based approach
by Marko Kohtamaki, Teemu Kautonen
International Journal of Value Chain Management (IJVCM), Vol. 2, No. 2, 2008

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.

Online publication date:: Fri, 28-Mar-2008

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