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The General Profile of the Outsourcing Firm Evidence for a Local Production System of Emilia Romagna

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Author Info

  • Massimiliano Mazzanti
  • Sandro Montresor
  • Paolo Pini

Abstract

The paper aims at ‘embedding’ the outsourcing firm by considering it as a four-fold unit of analysis: i.e. as an organizational, production, industrial and innovation unit. Theoretical correlations between outsourcing decisions and outsourcing variables are formulated and then tested with respect to a representative cross-sectional sample of firms of a local production system in Emilia Romagna (that is, Reggio Emilia). The main result of the paper is that outsourcing decisions are indeed affected by the organizational and industrial relations typical of the context firms are embedded in. Furthermore, the general profile of the Reggio Emilia outsourcing firm is strategic rather than operative. In particular, tapping-into the provider’s resources and competences to eventually promote technological innovation seems more relevant than searching for lower costs by contracting out.

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File URL: http://www3.druid.dk/wp/20060020.pdf
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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 06-20.

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Date of creation: 2006
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Handle: RePEc:aal:abbswp:06-20

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Web page: http://www.druid.dk/

Related research

Keywords: Outsourcing; transaction costs; industrial relations; innovation;

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Cited by:
  1. Roberto Antonietti & Giulio Cainelli, 2007. "Production Outsourcing, Organizational Governance and Firm’s Technological Performance: Evidence from Italy," Working Papers 2007.58, Fondazione Eni Enrico Mattei.
  2. S. Montresor & G. Vittucci Marzetti, 2006. "Outsourcing and structural change: shifting firm and sectoral boundaries," Working Papers 566, Dipartimento Scienze Economiche, Universita' di Bologna.

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