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A Model for Make-or-Buy Decisions in Engineering Design Services Sector: A Case Study from Turkey

Author

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  • Z. Aytan Ediz

    (Tekfen Engineering Co. Inc., Istanbul, Turkey)

  • M. Atilla Öner

    (#x2020;Management Application and Research Center, Yeditepe University, Istanbul, Turkey)

  • Y. Can Erdem

    (#x2020;Management Application and Research Center, Yeditepe University, Istanbul, Turkey)

  • Nesimi Kaplan

    (#x2021;Strategic Researches Institute, Turkish War College, Istanbul, Turkey)

Abstract

Make-or-buy decision is an important factor affecting the profitability of the firms in all sectors. The goal of this study is to propose a model for firms in engineering design services sector for make-or-buy decisions. A survey was conducted to determine the importance percentages given in an engineering company in make-or-buy decisions and a model was developed. The results of the case study show intriguing clusters of company personnel.As the lack of consensus among company managers and personnel may inhibit the successful implementation of the developed strategy, we use K-Means Clustering to determine the different perspectives of different groups of employees (managers, senior engineers, junior engineers, technical and administrative support personnel) which may contribute to the understanding of social dynamics of decision making within the company. 4-cluster and 5-cluster analysis results indicate the need for further study on the dynamics of cluster membership.

Suggested Citation

  • Z. Aytan Ediz & M. Atilla Öner & Y. Can Erdem & Nesimi Kaplan, 2018. "A Model for Make-or-Buy Decisions in Engineering Design Services Sector: A Case Study from Turkey," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 1-27, August.
    • Handle: RePEc:wsi:ijitmx:v:15:y:2018:i:04:n:s0219877018500384
    DOI: 10.1142/S0219877018500384
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    References listed on IDEAS

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    1. Platts, K. W. & Probert, D. R. & Canez, L., 2002. "Make vs. buy decisions: A process incorporating multi-attribute decision-making," International Journal of Production Economics, Elsevier, vol. 77(3), pages 247-257, June.
    2. Michael Gibbert & Winfried Ruigrok & Barbara Wicki, 2008. "What passes as a rigorous case study?," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1465-1474, December.
    3. Mingjin Yan & Keying Ye, 2007. "Determining the Number of Clusters Using the Weighted Gap Statistic," Biometrics, The International Biometric Society, vol. 63(4), pages 1031-1037, December.
    4. Huth, Christian & Kieckhäfer, Karsten & Spengler, Thomas Stefan, 2015. "Make-or-buy strategies for electric vehicle batteries—a simulation-based analysis," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 22-34.
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