Global sourcing and firm selection

Wilhelm Kohler and Marcel Smolka

No 63, University of Tübingen Working Papers in Business and Economics from University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics

Abstract: Which firms find it optimal to integrate their input suppliers into the firm boundaries of control (vertical integration)? Which firms choose to expand their sourcing activities across the national border (offshoring)? This letter provides novel evidence on these questions based on a Spanish firm-level data set. We find that firms selecting into strategies of vertical integration and of offshoring tend to have been more productive ex ante than firms choosing not to do so. This finding is in line with the recent heterogeneous-firm literature on input sourcing under incomplete contracts.

Keywords: vertical integration; offshoring; firm selection; firm productivity (search for similar items in EconPapers)
JEL-codes: F14 F23 L22 L23 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-bec, nep-ifn and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Journal Article: Global sourcing and firm selection (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuewef:63

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