Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

Is the Pro-Network Bias Justified

Outsourcers, Small Batch Production, and Advanced Manufacturing Technology

Bibliographic Data

ID16913522
AuthorsRafael Pardo (0000-0003-4658-7575, Fundacion BBVA, Madrid, Spain), Rafael I Pardo (0000-0003-3846-0355, Fundación BBVA), Ruth Rama (0000-0003-0193-473X, Consejo Superior de Investigaciones Científicas)
Year2013
Volume3
Issue3
Publication date2013-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/2158244013497032
OpenAlexW2109635134
LanguageEN
References cited70

The academic literature, policy makers, and international organizations often emphasize the value of networks that, allegedly, may contribute to subcontractor upgrading, innovation, and economic welfare. By contrast, it is difficult to assess whether engagement in production outsourcing networks also accrues some advantages to outsourcers (contractors). To research differences between these organizations and vertically integrated organizations, we analyzed a sample of 1,031 industrial plants, statistically representative of firms with more than 50 employees in Spain’s manufacturing industry. We used t-tests, nonparametric tests, and chi-square tests, and hypotheses were tested for three subsets of companies, classified by the R&D intensity of the industry. In each set of industries, subcontracting is systematically associated with small batch production. By contrast, vertically integrated plants are more inclined to use mass production. In every type of industry, subcontracting is a form of governance especially efficient for the diffusion of new technology. Plants that subcontract production are more likely than integrated plants to adopt advanced manufacturing technology, whatever the R&D intensity of the industry. We conclude that outsourcers seem better prepared than vertically integrated organizations to meet customers’ requirements but employment of subcontracting do not lower necessarily their technology needs—a widespread “pro-network” argument

Business · Economics · Industrial organization · Microeconomics · Outsourcing · Vertical Integration · Welfare · Computer Science · Global trade, sustainability, and social impact · Innovation and Knowledge Management · Outsourcing and Supply Chain Management · Marketing

  • Modular production networks

    Timothy J Sturgeon•Industrial and Corporate Change•2002

  • The Dynamic Capabilities of Firms

    D J Teece, David Teece et al.•Industrial and Corporate Change•1994

  • Networking and innovation

    Open Access•Luke Pittaway, Maxine Robertson et al.•International Journal of…•2004

  • Flexibility, hierarchy and regional development

    Open Access•Michael Storper, Bennett Harrison•Research Policy•1991

  • Trust

    Diego Gambetta•Trust•1990

  • Producer Services and Flexible Production

    Open Access•William J Coffey, Antoine S Bailly et al.•Growth and Change•1991

  • Vertical Integration and Technology

    Open Access•Daron Acemoglu, Philippe Aghion et al.•SSRN Electronic Journal•2007

  • The Oxford Handbook of Innovation

    Jan Fagerberg, David C Mowery•The Oxford handbook of innovation•2006

  • Domestic capabilities and global production networks in the clothing industry

    Chris Lane, Christel Lane et al.•Socio-Economic Review•2006

  • Network Forms of Organization

    Joel M Podolny, Karen L Page•Annual Review of Sociology•1998

Citation velocityhistorical
Highly citedNo

Tools

Open DOISci-HubOpen Access
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae