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Journal Articles Strategic Management Journal Year : 2002

Do make or buy decisions matter? The influence of organizational governance on technological performance

Michael J. Leiblein
  • Function : Author
Jeffrey J. Reuer
  • Function : Author

Abstract

This paper investigates how firms' decisions to outsource or internalize production affect their technological performance. While several popular arguments and some anecdotal evidence suggest a direct association between outsourcing and technological performance, the effects of firms' governance decisions are likely to be contingent upon several specific attributes underlying a given exchange. This paper first demonstrates how standard performance models can improperly suggest a positive relationship between firms' outsourcing decisions and their technological performance. Models that account for firm- and transaction-specific features are then presented, which indicate that neither outsourcing nor internalization per se result in superior performance; rather, a firm's technological performance is contingent upon the alignment between firms' governance decisions and the degree of contractual hazards. Copyright © 2002 John Wiley & Sons, Ltd.

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hal-00457649 , version 1 (18-02-2010)

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Frédéric Dalsace, Michael J. Leiblein, Jeffrey J. Reuer. Do make or buy decisions matter? The influence of organizational governance on technological performance. Strategic Management Journal, 2002, Vol.23, n°9, pp. 817-833. ⟨10.1002/smj.259⟩. ⟨hal-00457649⟩

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