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‘Slicing the Value Chain’ Internationally: Empirical Evidence on the Offshoring Strategy by French Firms
Author(s) -
Jabbour Liza
Publication year - 2012
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12001
Subject(s) - offshoring , asset specificity , multinomial logistic regression , economics , industrial organization , value (mathematics) , econometrics , asset (computer security) , set (abstract data type) , microeconomics , outsourcing , empirical evidence , business , marketing , transaction cost , computer science , philosophy , computer security , epistemology , programming language , machine learning
This study analyses firms’ offshoring strategy from an empirical perspective. It focuses on market thickness, firm heterogeneity and the relative costs of organisation modes. This study focuses on a set of theoretical predictions and creates a set of suitable variables to test their validity. This analysis is based on a data set from French manufacturing firms that provides detailed information on their offshoring strategy. The choice of offshoring modes is investigated through the estimation of a multinomial logit model and related to a set of explanatory variables at firm, industry and country level. The results emphasise the role of firm heterogeneity, asset specificity and of market thickness.