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Outsourcing and Information Management

  • Alessandro Innocenti
  • Sandrine Labory

This paper compares outsourcing processes in France, Italy and Japan in two types of firms, large firms and also small firms. It is shown that outsourcing has increased over the last two decades in both small and large firms in all three countries and that mainly in the last decade the tendency has been to increasingly involve some of the suppliers in product development. We interpret this evidence by means of a cognitive framework related to the activity of information management. Specifically, we show that the more the relationships among suppliers and users are characterised by two-way communication, decentralised information processing, and accordingly balanced contractual power, the more the incentives to create knowledge and to innovate autonomously are guaranteed.

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File URL: http://eaces.liuc.it/18242979200401/182429792004010105.pdf
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Article provided by Cattaneo University (LIUC) in its journal The European Journal of Comparative Economics.

Volume (Year): 1 (2004)
Issue (Month): 1 (June)
Pages: 107-125

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Handle: RePEc:liu:liucej:v:1:y:2004:i:1:p:107-125
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  1. Mathias Dewatripont & Patrick Bolton, 1994. "The firm as a communication network," ULB Institutional Repository 2013/9595, ULB -- Universite Libre de Bruxelles.
  2. Corò Giancarlo & Grandinetti Roberto, 1999. "Strategie di delocalizzazione e processi evolutivi nei distretti industriali italiani," L'industria, Società editrice il Mulino, issue 4, pages 897-924.
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  5. Demsetz, Harold, 1988. "The Theory of the Firm Revisited," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 141-61, Spring.
  6. Volpato, Giuseppe & Stocchetti, Andrea, 2002. "Managing information flows in supplier-customer relationships: issues, methods and emerging problems," MPRA Paper 30476, University Library of Munich, Germany.
  7. Coriat, Benjamin, 1995. "Variety, Routines and Networks: The Metamorphosis of Fordist Firms," Industrial and Corporate Change, Oxford University Press, vol. 4(1), pages 205-27.
  8. A. Arrighetti, 1999. "Integrazione verticale in Italia e in Europa: tendenze ed ipotesi interpretative," Economics Department Working Papers 1999-EP07, Department of Economics, Parma University (Italy).
  9. Asanuma, Banri, 1989. "Manufacturer-supplier relationships in Japan and the concept of relation-specific skill," Journal of the Japanese and International Economies, Elsevier, vol. 3(1), pages 1-30, March.
  10. Katharine G. Abraham & Susan K. Taylor, 1993. "Firms' Use of Outside Contractors: Theory and Evidence," NBER Working Papers 4468, National Bureau of Economic Research, Inc.
  11. Doi, Noriyuki & Cowling, Marc, 1998. " The Evolution of Firm Size and Employment Share Distribution in Japanese and UK Manufacturing: A Study of Small Business Presence," Small Business Economics, Springer, vol. 10(3), pages 283-92, May.
  12. M. Carree & A. Thurik, 1998. "Small firms and economic growth in europe," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(2), pages 137-146, June.
  13. Sah, Raaj Kumar & Stiglitz, Joseph E, 1986. "The Architecture of Economic Systems: Hierarchies and Polyarchies," American Economic Review, American Economic Association, vol. 76(4), pages 716-27, September.
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