Title: Supplier integration: impact of sole sourcing, multiple sourcing and vertical integration on firm profitability

Authors: Suresh S. Prabhu, Salil Talpade, Narendar Ramarapu

Addresses: School of Business Administration, Clark Atlanta University, James P. Brawley at Fair Street, Atlanta, GA 30314, USA. ' State University of West Georgia, Carrollton, GA 30318, USA. ' University of Nevada at Reno, Reno, NV 89523, USA

Abstract: Although theory and empirical studies have documented the conditions under which firms arrive at a |make| or |buy| decision, there is no framework to suggest how firms make such a decision. The purpose of this article is to highlight the conditions under which firms should |make|, that is vertically integrate versus |buy|, that is use suppliers.

Keywords: profitability factors; multiple sourcing; sole sourcing; supplier integration; vertical integration; make-or-buy decisions.

DOI: 10.1504/IJMPT.1997.036364

International Journal of Materials and Product Technology, 1997 Vol.12 No.4/5/6, pp.269 - 278

Published online: 02 Nov 2010 *

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