The Organizational Correlates And Consequences Of Subcontracting: Evidence From A Survey Of South Wales Businesses

Recent interest in the growth of subcontracting, as part of a broader trend towards greater ‘flexibility’in forms of employment relationship, has not as yet been matched by a full consideration of its organizational and managerial implications. In particular, the question of whether or not subcontracting has an impact upon, or is affected by, the organization's structural characteristics remains largely unexplored. the aim of this article is to report findings from a detailed study of subcontracting practices across a sample of British industry, which focuses upon the relationship between subcontracting and organizational characteristics. the results indicate several important points about the practice. Firstly, that there is wide variation in the use of subcontracting across industry, although the overall extent is limited. Secondly, that variation in the practice is significantly related to basic firm characteristics ‐ namely, industrial sector, type of production system and pattern of ownership and control. Thirdly, that, on balance, subcontracting is associated with more, not less, structural complexity. Finally, that this greater complexity is found in particular types of firms ‐ notably, outside the manufacturing sector, in mass and process production systems and amongst British independents and subsidiaries, rather than in their foreign competitors.