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Kohler, Wilhelm; Smolka, Marcel - In: Economics Letters 124 (2014) 3, pp. 411-415

We analyze the sourcing strategies of firms active in the Spanish manufacturing sector. We show that firms that select strategies of vertical integration and of foreign sourcing ex post tend to have been more productive, ex ante, than other firms.

Persistent link: https://www.econbiz.de/10010930705

Efficient organization of production: Nested versus horizontal outsourcing

Shy, Oz; Stenbacka, Rune - In: Economics Letters 116 (2012) 3, pp. 593-596

We characterize equilibrium and efficient modes of production by comparing nested (vertical) outsourcing with … horizontal outsourcing. Nested outsourcing is found to be inefficient unless the cost of monitoring outsourced production lines … market failure in which nested outsourcing is the market outcome even though horizontal outsourcing is the efficient …

Persistent link: https://www.econbiz.de/10010594176