FONTENAY, Catherine C. de <br/><br/>
A Bargaining perspective on strategic outsourcing and supply competition 

 - Chichester, UK :  John Wiley,  August 2008 
<br/><br/> This article considers the outsourcing choice of a downstream firm with its own upstream production resources or assets. The novelty of the approach is to consider the outsourced function as involving resources consistent with the resource-based view of the firm. From a bargaining perspective, we characterize a downstream firm's decision whether to outsource to an independent or to an established upstream firm. In so doing, the downstream firm faces a trade-off between lower input costs afforded by independent competition, and higher resource value associated with those who can consolidate upstream capabilities. We show that this trade-off is resolved in favor of outsourcing to an established firm