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Transaction Cost Economics as a contributing theory to Supply chain management : an assessment and application on theoretical basis

Fredikind, Thomas (2014) Transaction Cost Economics as a contributing theory to Supply chain management : an assessment and application on theoretical basis.

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Abstract:Supply Chain Management is known to incorporate multi-disciplinary fields of science and business practices. Due to the tremendous amount of available organizational theories, this topic shows necessity for reducing the scope to a relevant set of applicable theories. Among decades, the Transaction Cost Economics, or better known as the ‘Make-or-Buy’ decision, represents a useful approach for explaining firm boundaries, contractual arrangements and the existence of organizations. For assessing the potential of this framework as a contributing theory to Supply Chain Management, with respect to four key decision points within purchasing, this paper outlines an extensive literature review regarding the Transaction Cost Economics as such. Having confirmed the Transaction Cost Economics as an actual scientific theory by a given set of criteria, the applied framework indicates not only relevance, but also potential for valuable insights and practical use within Supply Chain Management.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/65994
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