Critical View on Leibenstein’s X-Efficiency Theory

This paper is about a theoretically evaluation of the x-efficiency theory with focus on supply management. The paper comes up with different evaluations as well as a critical view on the x-efficiency theory. Furthermore possible applications within the supply management with respect to the Make or Buy decision, the sourcing strategy, the supplier strategy and the contracting are given in this paper. The paper concludes that the x-efficiency theory can be applied in many areas within company as well as in different industries but also in the supply management.