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European Management Journal

Author

Listed:
  • Chanson, Guillaume
  • Quélin , Bertrand V.

Abstract

This paper is devoted to the pattern of activity within large companies, through the two criteria of decentralization and contracting out. Our goal is to understand whether the determinants are identical for both internal and external boundaries of the firm. One literature stream contributes to the analysis of the internal structure and organization of divisional companies, studying the functions assigned to headquarters or divisions. Another part of the literature has focused on the boundaries of the firm issues and the firm’s core activities. Few works are at the junction of these two traditions. This study builds on an empirical study dedicated to the book publishing industry. Our analysis leads to discuss determinants of internal and external borders. We show that functions or activities with high potential of economies of scale are mainly centralized and internalized. On reverse, those related to core business and non-programmable functions are mostly at divisional level and contracted out.

Suggested Citation

  • Chanson, Guillaume & Quélin , Bertrand V., 2013. "European Management Journal," HEC Research Papers Series 990, HEC Paris.
    • Handle: RePEc:ebg:heccah:0990
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    Cited by:

    1. Argouslidis, Paraskevas C. & Baltas, George & Mavrommatis, Alexis, 2015. "An empirical investigation into the determinants of decision speed in product elimination decision processes," European Management Journal, Elsevier, vol. 33(4), pages 268-286.
    2. Francisco Brahm & Jorge Tarziján, 2016. "Toward an integrated theory of the firm: The interplay between internal organization and vertical integration," Strategic Management Journal, Wiley Blackwell, vol. 37(12), pages 2481-2502, December.

    More about this item

    Keywords

    Boundaries of the firm; Centralization; Contracting out; Central services;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General

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