Evaluation of the X-Efficiency Theory in the Supply Management Context

The paper focuses on the evaluation of the x-efficiency theory within the supply management. The applicability of the theory to four decision points in the purchasing process is evaluated. The Make or Buy decision, the sourcing strategies, the supplier strategy and the contracting process are assessed in this literature review. The study shows that the theory can contribute to the sourcing strategy, the supplier strategy and the contracting decision of purchasers by giving practical suggestions to the purchasers.