Bocconi University

Organizing Remanufacturing Operations: A Transaction Cost Perspective

This study uses the transaction cost economics approach to build an analytical framework to understand the organizational choices for remanufacturing processes. A conceptual model is developed to test the relationships between the transactional attributes and vertical integration decisions in product recovery and to identify the strategic implications of these governance forms. The framework is intended to act both as an exploratory model and prescriptive roadmap for OEMs' organizational decisions to gain competitive advantages in product recovery.