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The General Profile of the Outsourcing Firm Evidence for a Local Production System of Emilia Romagna

Listed author(s):
  • Massimiliano Mazzanti
  • Sandro Montresor
  • Paolo Pini

The paper aims at ‘embedding’ the outsourcing firm by considering it as a four-fold unit of analysis: i.e. as an organizational, production, industrial and innovation unit. Theoretical correlations between outsourcing decisions and outsourcing variables are formulated and then tested with respect to a representative cross-sectional sample of firms of a local production system in Emilia Romagna (that is, Reggio Emilia). The main result of the paper is that outsourcing decisions are indeed affected by the organizational and industrial relations typical of the context firms are embedded in. Furthermore, the general profile of the Reggio Emilia outsourcing firm is strategic rather than operative. In particular, tapping-into the provider’s resources and competences to eventually promote technological innovation seems more relevant than searching for lower costs by contracting out.

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Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 06-20.

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Date of creation: 2006
Handle: RePEc:aal:abbswp:06-20
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