Balancing Vertical Acquisitions and Strategic Outsourcing : A study of how non-efficiency conceptions can influence vertical integration strategies and impact organizational boundaries.

Sammanfattning: There is a wide range of factors that impact the balance between vertical acquisitions and strategic outsourcing, which not only can be explained in terms of efficiency. These factors are multi-layered and can be found in the individuals who set the strategy, the organizations as a whole, and also the environment in which they operate, which has shown to be dynamic. Depending on the vertical integration strategy of firms, the concept of organizational boundaries are applied very differently. Numerous organizational boundaries expand and contract when a company vertically integrates with an acquisition or when non-integrating by strategically outsourcing tasks along the value-chain.