 Impact of industry competition on contract manufacturing: An empirical study of U.S. manufacturersChaodong Han, Tobin Porterfield and Xiaolin Li International Journal of Production Economics, 2012, vol. 138, issue 1, 159-169 Abstract: Anecdotal evidence from U.S. manufacturers and literature from strategy and operations research suggest that industry competition may be driving firm contract manufacturing decisions. However, there is little empirical research regarding specific drivers of contract manufacturing, particularly the effect of supplier industry competition on the use of contract manufacturing in the focal industry and how this relationship may be conditioned and moderated by focal industry characteristics. Grounded in Porter's Five-Force Model and Value Chain Perspective, the current study purports to address this research gap through an empirical examination of a panel dataset on all U.S. manufacturing industries, collected from the U.S. Economic Census. Regression results show that contract manufacturing is positively associated with supplier industry competition and the association is further moderated by focal industry competition and IT investment. Keywords: Contract manufacturing; Outsourcing; Industry competition; Product variety; Capacity utilisation; IT investment; Porter's Five-Forces Model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:138:y:2012:i:1:p:159-169 DOI: 10.1016/j.ijpe.2012.03.015 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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