TY  - BOOK
N2  - A vast empirical literature analyzes the determinants of the make-or-buy decision. How to organize supplier relationships when the buy option is chosen has received much less attention. The global value chains framework provides testable predictions on the nature of buyer–supplier collaboration. We use a unique transaction-level dataset of outsourced automotive components to study carmakers’ choices between four distinct types of supplier governance: market, captive, relational, or modular. The theory formulates predictions based on three characteristics: the complexity or contractibility of a transaction, the capabilities in the supply base, and how objectively codifiable performance requirements are. Our results illustrate that sourcing relationships vary systematically and that the effects of proxies for the three characteristics are in line with the theory.
AB  - A vast empirical literature analyzes the determinants of the make-or-buy decision. How to organize supplier relationships when the buy option is chosen has received much less attention. The global value chains framework provides testable predictions on the nature of buyer–supplier collaboration. We use a unique transaction-level dataset of outsourced automotive components to study carmakers’ choices between four distinct types of supplier governance: market, captive, relational, or modular. The theory formulates predictions based on three characteristics: the complexity or contractibility of a transaction, the capabilities in the supply base, and how objectively codifiable performance requirements are. Our results illustrate that sourcing relationships vary systematically and that the effects of proxies for the three characteristics are in line with the theory.
T1  - Testing predictions on supplier governance from the global value chains literature
AU  - Biesebroeck, Johannes Van,
AU  - Schmitt, Alexander,
JF  - Industrial and Corporate Change,
VL  - Volume 31, Issue 1
LA  - eng
ID  - 47751
KW  - European Union
KW  - Automobile industry
KW  - North America
SN  - 0960-6491 (Print)
SN  - 1464-3650 (Online)
TI  - Testing predictions on supplier governance from the global value chains literature
LK  - https://doi.org/10.1093/icc/dtab034
UR  - https://doi.org/10.1093/icc/dtab034
ER  -