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Civic capital and service outsourcing: Evidence from Italy

Author

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  • Bürker, Matthias
  • Mammi, Irene
  • Minerva, G. Alfredo

Abstract

This paper studies whether civic capital is an effective restraint against opportunistic behaviour in business-to-business transactions by looking at the firm-level degree of service outsourcing in Italy. Our results show that firms tend to outsource more services in areas where civic capital is higher. We claim that the rise in the propensity to engage in transactions with outside service suppliers stems from the decrease in opportunism between the parties involved.

Suggested Citation

  • Bürker, Matthias & Mammi, Irene & Minerva, G. Alfredo, 2021. "Civic capital and service outsourcing: Evidence from Italy," European Economic Review, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:eecrev:v:138:y:2021:i:c:s0014292121001835
    DOI: 10.1016/j.euroecorev.2021.103855
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    More about this item

    Keywords

    Civic capital; Purchased service intensity; Vertical integration; Outsourcing;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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