Contribution of the analytic hierarchy process (AHP) method for supporting the decision to outsource or internalize activities in the context of technology-based company

Abstract

The definition of business model requires, among other decisions, the structure of the value chain of an emerging new organization. This structure depends on the decision to outsource or internalize sets of processes and their activities. This decision fundamentally strategic, demand a correct definition of the activities that actually add value to the business, and therefore desirable a methodology able to assist the manager in the process of decision making. This paper aims to propose a process to aid decision to outsource or internalize activities in the context of a technology-based company, using the strategy of action research methods associated with the Analytic Hierarchy Process (AHP) and focus group technique. The study has resulted in the structuring of the decision process and criteria relevant to the identification of activities to be internalized by the technology-based company.