Outsourcing of advanced business services in the Spanish economy: Explanation and estimation of the regional effects

Santiago R. Martínez-Argüelles and Fernando Rubiera-Morollón
Authors registered in the RePEc Author Service: Fernando Rubiera Morollón

The Service Industries Journal, 2006, vol. 26, issue 3, 267-285

Abstract: The use of advanced business services has become an essential element for competitiveness in modern economies in which traditional competitive advantages based on prices, lower labour costs or the abundance of natural resources are being replaced by new advantages based on higher quality, greater knowledge or the use of information and communication technologies (ICTs). Within this context certain services (computing, communications, human resources, engineering, consulting or management) are generally outsourced so as to exploit the advantages derived from specialisation and division of labour, as well as those of economies of scope and scale. However, some businesses, sectors or regions appear to have very different patterns of outsourcing advanced producer services. This paper presents an explanation of elements of business outsourcing decisions applied to the Spanish economy, applying discrete response models to the information obtained in a survey elaborated by the authors. The data thus obtained have enabled us to identify differences between the Spanish regions in the tendencies of businesses to use internal or external advanced services.

Date: 2006
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Citations: View citations in EconPapers (8)

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DOI: 10.1080/02642060600570885

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