The Influences of Innovation on Make-or-buy Decision Under the Dynamic Environment

DOI

10.2991/iccese-19.2019.385How to use a DOI?

Keywords

heuristic mode; innovation; make-or-buy; value chain

Abstract

The decision-making of make-or-buy is the critical issue so that firms are often faced in the process of production and operation, which consequently decides the future strategic development. The study of make-or-buy decisions has a profound impact on the boundary between market and the firm. The most famous research is transaction cost economics (TCE) in terms of the make-or-buy interpretation, which is advocated by Williamson, a Nobel Prize winner. Therefore the argument about vertical integration was put forward by many scholars. Based on the analysis framework of Williamson’s heuristic model in the make-or-buy decision, by relaxing the assumptions of the original decision model, this study tries to analyze make-or-buy decision-making process in the continuously dynamic rather than static environment. From the perspective of technological innovation, the study explores the actual innovative process in business organizations in value chain under the dynamic environment in firms and provides theoretical guidance for realizing the effective governance of the enterprise.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xin Li
AU  - Huan Huang
PY  - 2019/04
DA  - 2019/04
TI  - The Influences of Innovation on Make-or-buy Decision Under the Dynamic Environment
BT  - Proceedings of the 3rd International Conference on Culture, Education and Economic Development of Modern Society (ICCESE 2019)
PB  - Atlantis Press
SP  - 1759
EP  - 1764
SN  - 2352-5398
UR  - https://doi.org/10.2991/iccese-19.2019.385
DO  - 10.2991/iccese-19.2019.385
ID  - Li2019/04
ER  -