oa South African Journal of Economic and Management Sciences - A theory for industrial make-buy decisions?

Volume 2, Issue 3
  • ISSN : 1015-8812
  • E-ISSN: 2222-3436



After an introduction, the authors derive some common industrial make-buy situations. Six prominent economic theories of the firm are then outlined, before setting criteria to select the most appropriate economic theory for deciding when to make and when to buy. An augmented transactions cost theory may we1l be the most secure basis for a manager, in an industrial setting, to decide what to make within, and what to buy outside, the firm.

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