Premium
Geographies of Subcontracting
Author(s) -
Neo Harvey
Publication year - 2010
Publication title -
geography compass
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.587
H-Index - 65
ISSN - 1749-8198
DOI - 10.1111/j.1749-8198.2010.00349.x
Subject(s) - scope (computer science) , production (economics) , industrialisation , service (business) , industrial organization , business , economies of agglomeration , economic geography , economic system , economics , market economy , marketing , economic growth , computer science , microeconomics , programming language
At its simplest, ‘subcontracting’ occurs when a company outsources some of its operations and functions to others. These contracts include production, service support, and in some cases, research and design. Yet, the nature of subcontracting as a mode of economic production varies dramatically across different industries, spatial scales, places, and impacts. In view of the immense scope of this topic, in this article, I hope to highlight and illuminate a few significant strands and key contentions of the subcontracting literature. First, I will illustrate the varieties and increasing complexity of subcontracting since its early roots in the pre‐industrialization era. Second, I will attempt to explain why firms choose to subcontract. Third, I will also mention briefly other cognate concepts (e.g. ‘trust’ and ‘agglomeration’) which play a role in explaining the nature of subcontracting relationships. Where possible, I will also discuss the extent to which subcontracting relationships are inequitable. Finally, I will use the case study of contract farming in the livestock industry to illustrate the various contentions surrounding subcontracting as a form of economic production and organization.