SUBCONTRACTORS IN GLOBAL VALUE CHAINS: A TYPOLOGICAL THEORY AND EMPLOYMENT SYSTEMS FRAMEWORK

In this thesis, I argue that there are different types of first-tier subcontractors and that distinct employment systems will be seen at each of these subcontractor types. I identify four subcontractor ideal types in the form of a typology- Economic, Agile, Turn-key and Client-Specific Subcontractors- differing on their degree of specialization, customization and value chain governance. I argue that each of these subcontractors will have different sources of competitive advantage and modes of operation and that their recruitment & selection, skills & training, work design and appraisal & rewards will therefore be organized quite differently. I present some preliminary empirical evidence from Infosys Technologies Ltd., Infosys BPO and Infosys Consulting Inc. in order to empirically specify my ideal types and check the validity of my hypothesized employment systems framework.