Outsourcing and Firm Productivity: Evidence for an Italian Local Production System

37 Pages Posted: 1 Aug 2008 Last revised: 11 Sep 2008

See all articles by Sandro Montresor

Sandro Montresor

University of Bologna - Department of Economics

Davide Antonioli

University of Ferrara

Massimiliano Mazzanti

University of Ferrara & CERIS CNR, Italy; CESAER INRA, UMR, France

Paolo Pini

Faculty of Economics; University of Ferrara - Department of Economics, Institutions and Territory

Date Written: August 1, 2008

Abstract

The paper investigates empirically the impact that outsourcing strategies have on the labour productivity of firms embedded in a local production system characterized by idiosyncratic techno-economic and organizational features. A diachronic cross-section econometric model of the productivity impact of outsourcing is applied to a sample of firms based in the local production system (LPS) of Reggio Emilia (RE) (in Emilia Romagna, Italy). The application confirms some of the results the empirical literature reports for other no or less context specific empirical applications, in particular their dependency on the kind of outsourced activities, the internationalization of the outsourcing firm and time horizon of the productivity effects. On the other hand, when the actual extent at which the different kinds of activities are outsourced is retained, important exceptions to these results are obtained: the positive impact of the externalization of manufacturing activities is the most relevant and the most consistent with the district nature of the investigated LPS.

Keywords: Outsourcing, productivity, transaction costs, industrial relations

JEL Classification: L22, D23, J53

Suggested Citation

Montresor, Sandro and Antonioli, Davide and Mazzanti, Massimiliano and Pini, Paolo, Outsourcing and Firm Productivity: Evidence for an Italian Local Production System (August 1, 2008). Available at SSRN: https://ssrn.com/abstract=1194322 or http://dx.doi.org/10.2139/ssrn.1194322

Sandro Montresor (Contact Author)

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Davide Antonioli

University of Ferrara ( email )

Via Voltapaletto 11
Ferrara, 44121
Italy

Massimiliano Mazzanti

University of Ferrara & CERIS CNR, Italy ( email )

via Voltapaletto, 11
Ferrara, 44100
Italy

CESAER INRA, UMR, France ( email )

via Bassini 15
Milan
Italy

Paolo Pini

Faculty of Economics ( email )

Via Voltapaletto n.11
Ferrara, Ferrara 44100
Italy

University of Ferrara - Department of Economics, Institutions and Territory ( email )

Via Voltapaletto n.11
Ferrara, Ferrara 44100
Italy

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