SPECIFIC PERFORMANCE MEASUREMENT INSTRUMENTS FOR SOURCING STRATEGY

Abstract

Sourcing has become quite a popular topic in both research and practice of modern business management. It brings a revolutionary philosophy and approach in today's management because pf technology, globalization and the never ending pursuance of competitive advantage. HOwever, present perofrmance measurement instruments have not been able to provide its necesarry support in strategic decisions and performance measurement by introducing new parameters on the  existing financsial and non-financial performance measurements specifically in the development of strategic sourcing management. Basically the research in based on the Industrial Organizational (IO) Theory, the Transaction Cost Theory and the Resource Based View (RBV). Meanwhile, uestionnaires were sent via mail survey to 1300 firms and 314 of them responded. In sum the findings suggest that the use of the proposed measurement instruments reflect better performance of the organizations in this sourcing study (make or buy)