Cover: Strategic Sourcing

Strategic Sourcing

Theory and Evidence from Economics and Business Management

Published 1997

by Ellen M. Pint, Laura H. Baldwin

Download

Full Document

FormatFile SizeNotes
zip file 0.2 MB

The file(s) provided above are ZIP-formatted archives, which most modern systems can natively unpack. If your computer does not unpack the archive when you double-click it, you may need to use a separate decompression program such as UnZip.

Purchase

Purchase Print Copy

 Format Price
Add to Cart Paperback99 pages $30.00

This report, originally prepared as an annotated briefing, discusses the recommendations of the economics and business management literatures on issues related to outsourcing. It is found that organizations should outsource those activities that can be most effectively managed externally, so that senior managers can devote their attention to activities best managed internally. The economics literature emphasizes that activities involving transaction-specific assets should be managed internally, whereas the business management literature recommends that organizations retain internal control of their core competencies. Organizations can often gain access to superior performance at equal or lower cost by outsourcing other activities. Therefore, it seems prudent for the Air Force to focus its outsourcing efforts on activities that are neither core competencies nor involve great asset specificity, although the business management literature suggests that the Air Force could outsource activities that do involve asset specificity, such as the provision of complex services, if it develops longer-term partnerships with suppliers rather than treating them as arm's-length vendors. Also, past performance information could be used to advantage in outsourcing to develop longer-term relationships and encourage transaction-specific investments.

Research conducted by

This report is part of the RAND monograph report series. The monograph/report was a product of RAND from 1993 to 2003. RAND monograph/reports presented major research findings that addressed the challenges facing the public and private sectors. They included executive summaries, technical documentation, and synthesis pieces.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.