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Outsourcing and firm productivity: evidence for an Italian local production system

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Author Info

  • Sandro Montresor
  • Davide Antonioli
  • Massimiliano Mazzanti
  • Paolo Pini

Abstract

The paper investigates empirically the impact that outsourcing strategies have on the labour productivity of firms embedded in a local production system characterized by idiosyncratic techno-economic and organizational features. A diachronic cross-section econometric model of the productivity impact of outsourcing is applied to a sample of firms based in the local production system (LPS) of Reggio Emilia (RE) (in Emilia Romagna, Italy). The application confirms some of the results the empirical literature reports for other no or less context specific empirical applications, in particular their dependency on the kind of outsourced activities, the internationalization of the outsourcing firm and time horizon of the productivity effects. On the other hand, when the actual extent at which the different kinds of activities are outsourced is retained, important exceptions to these results are obtained: the positive impact of the externalization of manufacturing activities is the most relevant and the most consistent with the district nature of the investigated LPS.

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Bibliographic Info

Paper provided by Public policies and local development in its series Openloc Working Papers with number 0907.

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Date of creation: 2009
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Handle: RePEc:trn:utwpol:0907

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Related research

Keywords: outsourcing; productivity; transaction costs; industrial relations; innovation;

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Cited by:
  1. Roberto Antonietti, 2014. "From Outsourcing to Productivity, Passing Through Training: Microeconometric Evidence from Italy," Working Papers 2014.12, Fondazione Eni Enrico Mattei.

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