Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.ejor.2009.08.006
Title: Outsourcing suppliers as downstream competitors: Biting the hand that feeds
Authors: Lim, W.S. 
Tan, S.J. 
Keywords: Game theory
Outsourcing
Supplier opportunism
Supply chain management
Issue Date: 2010
Citation: Lim, W.S., Tan, S.J. (2010). Outsourcing suppliers as downstream competitors: Biting the hand that feeds. European Journal of Operational Research 203 (2) : 360-369. ScholarBank@NUS Repository. https://doi.org/10.1016/j.ejor.2009.08.006
Abstract: In this paper, we highlight an aspect of supplier opportunism in the outsourcing paradox that has largely been ignored by extant research - the supplier as a direct competitor of the buyer firm. In light of this paradox, we offer a game-theoretic framework in which we identify conditions under which firms could alleviate or mitigate this outsourcing problem. Our results show that apart from transaction costs, firm-level capabilities (both ordinary and dynamic) play important roles in determining the make only, buy only, or make-and-buy options a firm could exercise in countering the threat of the supplier as a potential competitor in the downstream marketplace. © 2009 Elsevier B.V. All rights reserved.
Source Title: European Journal of Operational Research
URI: http://scholarbank.nus.edu.sg/handle/10635/43864
ISSN: 03772217
DOI: 10.1016/j.ejor.2009.08.006
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