DETERMINANTS OF MAKE OR BUY DECISION AMONG LISTED COMPANIES IN SUBSAHARAN AFRICA

Dollan Zhu, John Addae

Abstract


The complex dynamism of the business environment over the recent years has hindered the survival of most firms especially after the financial crisis in 2008. This has therefore presented firms with the challenge to make critical decision so as to survive in this fierce environment. The decision-making is a critical process that needs to be approached with all seriousness since firm’s survival or failure depends on it. Furthermore, due to the scarcity of resources in both the internal and external environment of a firm it is prudent to be able to make efficient use of the available resources so as to cut down waste in relation to time and cost. The study analysed four factors namely resource based factors, transaction cost factors, firm size factors and external factors were analyzed and ranked. It is noted that a firm's resources such as resource availability, innovative competence, share risk/expertise and market penetration are more dominant that cost elements such as supplier competition, buyer experience, volume uncertainty, production cost advantage and technology uncertainty.


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