Analysis of the “make or buy” decision process in a research and development sme

Start-up SMEs face various challenges and difficulties during their existence and due to their nature they often lack knowledge and resources to fully address these challenges. Unlike large companies which have access to various resources, those resources are a significant gap for SMEs and the business owners have to rely on their own limited knowledge. The “Make or buy” decision is a critical decision in an organisation. This decision can affect current and future costs, capability and competences in the company and by taking best practice approaches and measures towards the decision making, extensive costs can be potentially saved. In this study, literature best practices have been reviewed. In addition a small company has been studied and the current practices of the company have been compared to academic best practices. The result of the study will be used to improve the “Make or buy” decision process in the company.