Showing 1 - 10 of 47
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10013120903
Germany exhibits a strong reduction in domestic manufacturing production depth (bazaar effect). I argue that this reflects an unbundling of comparative advantage. Using a model where Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments of production, I compare a trading...
Persistent link: https://www.econbiz.de/10012777491
The paper investigates the consequences of outsourcing of labor intensive activities to lowwage economies. This trend … markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk of unskilled workers; (ii …) it increases inequality among high- and low-income groups; and (iii) the gains from outsourcing can be made Pareto …
Persistent link: https://www.econbiz.de/10013316451
The existing outsourcing literature has generally overlooked the cost differential and contract negotiations between … presence of <i>competition</i> and <i>negotiations</i>. In other words, does low cost outsourcing always lead to a win … supplier. We show that, under both structures, low cost outsourcing may lead to a win-lose outcome in which the suppliers gain …
Persistent link: https://www.econbiz.de/10010990437
outsourcing, and whether firms choose to build or buy software. Instrumental variables and corroborating regressions suggest that …
Persistent link: https://www.econbiz.de/10010990575
research has shown that outsourcing of back-office IS generally has a positive effect on shareholder value of the outsourcing … firm. Much less is known about the performance implications of outsourcing of another important IS function, namely, front … tasks. Previous, largely anecdotal evidence shows that the performance implications of outsourcing CRM range from very …
Persistent link: https://www.econbiz.de/10010990594
This paper studies outsourcing decisions for a two-level service process in which the first level serves as a … influence the client's optimal outsourcing option. <i>This paper was accepted by Martin Lariviere, operations management.</i> …
Persistent link: https://www.econbiz.de/10010990616
A firm typically assigns multiple tasks it must perform to either internal employees or outside vendors. This paper demonstrates the need to integrate a task assignment decision with the design of a managerial control system as each affects the other. An internal employee is distinguished from...
Persistent link: https://www.econbiz.de/10009208978
We consider a single buyer who wishes to outsource a fixed demand for a manufactured good or service at a fixed price to a set of potential suppliers. We examine the value of competition as a mechanism for the buyer to elicit service quality from the suppliers. We compare two approaches the...
Persistent link: https://www.econbiz.de/10009209324
production and sales. We analyze and present outsourcing conditions for three contract types: (1) price-only contractswhere an ex …
Persistent link: https://www.econbiz.de/10009218316