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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
In this paper, we consider a dynamic search-and-matching problem of a firm with its intermediate input supplier. In our model, a headquarter currently matched with a supplier, has an interest to find and collaborate with a more efficient partner. However, supplier switching through search and...
Persistent link: https://www.econbiz.de/10012930079
We use unique plant-level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. To guide our empirical analysis we develop a monopolistic-competition model of the materials sourcing decisions of heterogeneous...
Persistent link: https://www.econbiz.de/10013316255
distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm's choice is …
Persistent link: https://www.econbiz.de/10013149002
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/10009278130
parameters may lead to a large increase in offshoring activities …
Persistent link: https://www.econbiz.de/10012764740
organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the “indirect … outsourcing of the “less important” supplier is chosen in equilibrium. We also consider an open economy setup where the producer …
Persistent link: https://www.econbiz.de/10010550244
organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the 'indirect … outsourcing of the 'less important' supplier is chosen in equilibrium. We also consider an open economy setup where the producer …
Persistent link: https://www.econbiz.de/10013315907
the integration vs outsourcing decision - high potential cost savings of ‘unethical' production in an industry favor … international outsourcing and most strongly so for sourcing from low-regulation countries. Motivated by these findings, we introduce …)ethical technology choices of integrated as well as independent suppliers. We identify the unethical outsourcing incentive as a novel …
Persistent link: https://www.econbiz.de/10012852396
input supplier (vertical integration vs. outsourcing), as well as the location of intermediate input production (offshore vs … intensity, but favors outsourcing in industries of high sourcing intensity. Moreover, we find that productivity boosts … offshoring throughout all industries, with the effect increasing monotonically in the sourcing intensity. Our results lend strong …
Persistent link: https://www.econbiz.de/10013028794