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ABSTRACT The concept of a managed market is developed and is seen as especially suitable for complex transactions as an alternative to internal hierarchical organization. It is argued that a number of augmenting processes, namely trust, routinization and mutual adjustment, usually associated with internal organization, can be used to good effect in a market. Hence the paper develops an approach to make‐buy decisions through a transactions cost model and exemplifies the augmenting processes in three case studies from branches of the engineering industry.
Journal of Management Studies – Wiley
Published: Apr 1, 1983
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