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- Title
Headquarter intensity and the choice between outsourcing versus integration at home or abroad.
- Authors
Federico, Stefano
- Abstract
This article provides an empirical analysis of the choice between outsourcing and integration, with a distinction based on whether production is carried out at home or abroad. Using firm-level data for Italy, we find that the preference for integration over outsourcing is positively related to indicators of headquarter intensity, notably capital intensity, and to firm-level productivity. We also find that foreign sourcing strategies are not independent from domestic sourcing strategies. Overall, the evidence provides support to models based on relationship-specific investments.
- Subjects
ITALY; CORPORATE headquarters; OUTSOURCING management; INDUSTRIAL productivity; CAPITAL intensity
- Publication
Industrial & Corporate Change, 2012, Vol 21, Issue 6, p1337
- ISSN
0960-6491
- Publication type
Article
- DOI
10.1093/icc/dts006