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

Jose Galdon-Sanchez (jose.galdon@unavarra.es), Ricard Gil and Alberto Bayo-Moriones

European Economic Review, 2015, vol. 78, issue C, 328-344

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.

Keywords: Outsourcing; Peripheral services; Manufacturing; Market share; Competition (search for similar items in EconPapers)
JEL-codes: L22 L23 L60 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:78:y:2015:i:c:p:328-344

DOI: 10.1016/j.euroecorev.2015.06.005

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