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Outsourcing of peripheral services: Evidence from Spanish manufacturing plant-level data

Author

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  • Galdon-Sanchez, Jose Enrique
  • Gil, Ricard
  • Bayo-Moriones, Alberto

Abstract

In this paper we empirically explore outsourcing decisions of peripheral services using information from a data set of 926 Spanish manufacturing plants. We find that increases in outsourcing of peripheral services are positively correlated with increases in the plant׳s market share as well as increases in product market competition and product prices. These findings are robust to controlling for whether plants belong to single-plant or multi-plant firms. These patterns are consistent with a strategic shift in the allocation of attention to core manufacturing activities, and are at odds with traditional TCE and PRT theories of vertical integration.

Suggested Citation

  • Galdon-Sanchez, Jose Enrique & Gil, Ricard & Bayo-Moriones, Alberto, 2015. "Outsourcing of peripheral services: Evidence from Spanish manufacturing plant-level data," European Economic Review, Elsevier, vol. 78(C), pages 328-344.
  • Handle: RePEc:eee:eecrev:v:78:y:2015:i:c:p:328-344
    DOI: 10.1016/j.euroecorev.2015.06.005
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    References listed on IDEAS

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    Cited by:

    1. repec:spr:jlabre:v:38:y:2017:i:4:d:10.1007_s12122-017-9259-2 is not listed on IDEAS
    2. Alberto Bayo-Moriones & Jose E. Galdon-Sanchez & Sara Martinez-de-Morentin, 2017. "Performance Measurement and Incentive Intensity," Journal of Labor Research, Springer, vol. 38(4), pages 496-546, December.

    More about this item

    Keywords

    Outsourcing; Peripheral services; Manufacturing; Market share; Competition;

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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