Department of Economics and Business Economics

Concurrent sourcing and external supplier opportunism

Research output: Contribution to conferencePaperResearchpeer-review

When a firm simultaneously makes and buys the same components then the firm uses concurrent sourcing. This paper presents an agency model for explaining how and when concurrent sourcing reduces the likelihood of external supplier opportunism. In the proposed model, the external supplier’s expected costs of opportunism are determined as a product of four factors. The four factors are: likelihood of discovering supplier opportunism, buyer’s internalized quantity as reaction to supplier opportunism, asset specificity of external supplier’s investments, and multiplicator effects. Each of these factors are explained and discussed in the paper. The paper ends by offering a number of theoretical and managerial implications.
Original languageEnglish
Publication year2014
Publication statusPublished - 2014
EventStrategic Management Society 34th annual international conference - Madrid, Madrid, Spain
Duration: 20 Sep 201423 Sep 2014
Conference number: 34

Conference

ConferenceStrategic Management Society 34th annual international conference
Number34
LocationMadrid
CountrySpain
CityMadrid
Period20/09/201423/09/2014

Bibliographical note

Paper presented at Strategic Management Society 34th annual international conference, Madrid, Sept. 20-23.

See relations at Aarhus University Citationformats

ID: 81679280