Problems Deciding: How the Structure of Make-or-Buy Decisions Leads to Transaction Misalignment

@article{Bidwell2010ProblemsDH,
  title={Problems Deciding: How the Structure of Make-or-Buy Decisions Leads to Transaction Misalignment},
  author={Matthew Bidwell},
  journal={Organization Science},
  year={2010},
  volume={21},
  pages={362-379}
}
This paper explores how the structure of decision making affects the way that firms manage their boundaries. Achieving transaction alignment requires firms to balance multiple goals. Drawing on the behavioral theory of the firm, I note that firms often assign different goals to different organizational units. As a consequence, simple problems about whether to make or buy can be affected by multiple decisions taken by multiple, locally rational units. I use a case study of the management of IT… CONTINUE READING

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