Make or buy strategy and origin of sourcing materials and their relationship with firm performance

The paper presents a study relating to the strategic decision of ‘make’ or ‘buy’ to organizational performance, and whether it is related to the origin of the resources used on manufacturing firms in Malaysia. Convenience sampling was done and 314 companies responded. The findings indicate that ther...

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Main Authors: Mohamed, Zainal Abidin, Abdullah, Haim Hilman, Othman, Rozhan, Uli, Jegak
Format: Article
Language:English
Published: World Business Institute 2009
Online Access:http://psasir.upm.edu.my/id/eprint/7653/1/Make%20or%20buy%20strategy%20and%20origin%20of%20sourcing%20materials%20and%20their%20relationship%20with%20firm%20performance.pdf
http://psasir.upm.edu.my/id/eprint/7653/
http://www.irbrp.com/previous_issue/April/2009
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spelling my.upm.eprints.76532016-01-15T01:10:25Z http://psasir.upm.edu.my/id/eprint/7653/ Make or buy strategy and origin of sourcing materials and their relationship with firm performance Mohamed, Zainal Abidin Abdullah, Haim Hilman Othman, Rozhan Uli, Jegak The paper presents a study relating to the strategic decision of ‘make’ or ‘buy’ to organizational performance, and whether it is related to the origin of the resources used on manufacturing firms in Malaysia. Convenience sampling was done and 314 companies responded. The findings indicate that there was no significant difference between the performance of companies that ‘make’ or ‘buy’. But when these two groups were further scrutinised based on the origin of their resources used, sourcing from developed and developing countries do have effects on company performance. The make or buy decisions have become strategic in nature and the sourcing from different destinations have significant relation with performance. Now that globalisation is common, choosing where your resources come from (to ‘buy’ or to ‘make’) can also be a strategic factor. The findings may add another dimension for consideration in the strategy formulation process. World Business Institute 2009-04 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/7653/1/Make%20or%20buy%20strategy%20and%20origin%20of%20sourcing%20materials%20and%20their%20relationship%20with%20firm%20performance.pdf Mohamed, Zainal Abidin and Abdullah, Haim Hilman and Othman, Rozhan and Uli, Jegak (2009) Make or buy strategy and origin of sourcing materials and their relationship with firm performance. International Review of Business Research Papers, 5 (3). pp. 142-155. ISSN 1837-5685; ESSN: 1832-9543 http://www.irbrp.com/previous_issue/April/2009
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The paper presents a study relating to the strategic decision of ‘make’ or ‘buy’ to organizational performance, and whether it is related to the origin of the resources used on manufacturing firms in Malaysia. Convenience sampling was done and 314 companies responded. The findings indicate that there was no significant difference between the performance of companies that ‘make’ or ‘buy’. But when these two groups were further scrutinised based on the origin of their resources used, sourcing from developed and developing countries do have effects on company performance. The make or buy decisions have become strategic in nature and the sourcing from different destinations have significant relation with performance. Now that globalisation is common, choosing where your resources come from (to ‘buy’ or to ‘make’) can also be a strategic factor. The findings may add another dimension for consideration in the strategy formulation process.
format Article
author Mohamed, Zainal Abidin
Abdullah, Haim Hilman
Othman, Rozhan
Uli, Jegak
spellingShingle Mohamed, Zainal Abidin
Abdullah, Haim Hilman
Othman, Rozhan
Uli, Jegak
Make or buy strategy and origin of sourcing materials and their relationship with firm performance
author_facet Mohamed, Zainal Abidin
Abdullah, Haim Hilman
Othman, Rozhan
Uli, Jegak
author_sort Mohamed, Zainal Abidin
title Make or buy strategy and origin of sourcing materials and their relationship with firm performance
title_short Make or buy strategy and origin of sourcing materials and their relationship with firm performance
title_full Make or buy strategy and origin of sourcing materials and their relationship with firm performance
title_fullStr Make or buy strategy and origin of sourcing materials and their relationship with firm performance
title_full_unstemmed Make or buy strategy and origin of sourcing materials and their relationship with firm performance
title_sort make or buy strategy and origin of sourcing materials and their relationship with firm performance
publisher World Business Institute
publishDate 2009
url http://psasir.upm.edu.my/id/eprint/7653/1/Make%20or%20buy%20strategy%20and%20origin%20of%20sourcing%20materials%20and%20their%20relationship%20with%20firm%20performance.pdf
http://psasir.upm.edu.my/id/eprint/7653/
http://www.irbrp.com/previous_issue/April/2009
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score 12.795131