Civic capital and service outsourcing: Evidence from Italy

Matthias Bürker, Irene Mammi and Gaetano Alfredo Minerva

European Economic Review, 2021, vol. 138, issue C

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.

Keywords: Civic capital; Purchased service intensity; Vertical integration; Outsourcing (search for similar items in EconPapers)
JEL-codes: A13 L20 L24 R12 (search for similar items in EconPapers)
Date: 2021
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Working Paper: Civic Capital and Service Outsourcing: Evidence from Italy (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:138:y:2021:i:c:s0014292121001835

DOI: 10.1016/j.euroecorev.2021.103855

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