Arvanitis, Spyros; Bolli, Thomas; Stucki, Tobias (2017). In or Out: How Insourcing Foreign Input Production Affects Domestic Production Management International Review, 57(6), pp. 879-907. Springer Berlin Heidelberg 10.1007/s11575-017-0322-2
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Arvanitis, Bolli, Stucki - 2017 - In or Out How Insourcing Foreign Input Production Affects Domestic Production(2).pdf - Published Version Available under License Publisher holds Copyright (National Licenses). Download (563kB) | Preview |
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In or Out.pdf - Accepted Version Available under License Publisher holds Copyright. Download (384kB) | Preview |
When a firm imports inputs from foreign countries, the management faces two options: buying from unaffiliated firms or insourcing the foreign production. This paper suggests that this decision directly affects domestic production because international insourcing affects the operational flexibility and the firms' opportunities for accessing knowledge and capabilities developed abroad. Empirical results based on firm-level data of Swiss firms confirm this hypothesis. Concretely, the insourcing of international production increases domestic productivity, decreases (at least in the short run) domestic employment and possibly investments. In line with transaction cost literature, we observe that contractual hazards moderate these effects.
Item Type: |
Journal Article (Original Article) |
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Division/Institute: |
Business School > Institute for Sustainable Business Business School |
Name: |
Arvanitis, Spyros; Bolli, Thomas and Stucki, Tobias  0000-0002-2400-0107 |
ISSN: |
0938-8249 |
ISBN: |
1127701525 |
Publisher: |
Springer Berlin Heidelberg |
Language: |
English |
Submitter: |
Tobias Stucki |
Date Deposited: |
29 Jan 2019 09:05 |
Last Modified: |
27 Jun 2022 14:18 |
Publisher DOI: |
10.1007/s11575-017-0322-2 |
Uncontrolled Keywords: |
Contractual hazards, Domestic production, Governance mode, Imports, International insourcing, Productivity |
ARBOR DOI: |
10.24451/arbor.65 |
URI: |
https://arbor.bfh.ch/id/eprint/65 |
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