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Stefano Federico, Headquarter intensity and the choice between outsourcing versus integration at home or abroad, Industrial and Corporate Change, Volume 21, Issue 6, December 2012, Pages 1337–1358, https://doi.org/10.1093/icc/dts006
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Abstract
This article provides an empirical analysis of the choice between outsourcing and integration, with a distinction based on whether production is carried out at home or abroad. Using firm-level data for Italy, we find that the preference for integration over outsourcing is positively related to indicators of headquarter intensity, notably capital intensity, and to firm-level productivity. We also find that foreign sourcing strategies are not independent from domestic sourcing strategies. Overall, the evidence provides support to models based on relationship-specific investments.