Concurrent Sourcing, Governance Mechanisms, and Performance Outcomes in Industrial Value Chains
We examine transaction governance in the context of concurrent sourcing, where a manufacturer
relies on sourcing from external suppliers and in-house production simultaneously. Our focus is
on (1) a buyer’s use of particular safeguards or governance mechanisms vis-`a-vis an external
supplier and (2) how the effects of these mechanisms on various performance outcomes are
influenced by the joint presence of an internal manufacturing branch. We conduct two studies
in the apparel industry and show that performance outcomes are a joint function of (1) the
individual governance mechanisms that are deployed in a particular relationship and (2) the
larger sourcing context (concurrent or singular).
||Concurrent Sourcing, Governance Mechanisms, and Performance Outcomes in Industrial Value Chains
Strategic Management Journal (Aug, 2014)
||Heide, J. B.; Kumar, Alok; Wathne, K. H.