Vertical integration for full outsourcing: growth and internationalization of a portuguese packaging firm

Ferreira, Manuel Portugal; Armagan, Sungu; Li, Dan

http://hdl.handle.net/10400.8/25

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Authors

Ferreira, Manuel Portugal

Armagan, Sungu

Li, Dan

Abstract(s)

Based on a case study of a Portuguese packaging firm, this paper examines how vertical integration of the supplier serves as a vehicle for the full outsourcing of the client firms' needs in a solution that reduces transaction costs, favors specialization, and permits small and mediumsized firms to develop competencies that may be exploited in a wide array of projects. Vertical integration by the supplier (a governance decision) is a strategic response to changes in the sourcing model of the clients. Client-supplier relationships have inter-spatial and inter-temporal value that surpasses spot market exchanges.

Keywords

Strategic outsourcing Vertical integration Internationalization Case study

URI

http://hdl.handle.net/10400.8/25

Citation

FERREIRA, Manuel Portugal; ARMAGAN, Sungu; LI, Dan - Vertical integration for full outsourcing: growth and internationalization of a portuguese packaging firm. globADVANTAGE Working Paper. N.º 4 (2007), p. 1-29.