Who benefits from outsourcing? A study of one italian region’s small firms

This paper analyses the production outsourcing of Emilia-Romagna’s small clothing manufacturers, using a new rich firm-level dataset. This dataset has the considerable advantage of containing interesting information about the outsourcing of certain phases of the production process that no other data...

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Main Authors: Ignazio Drudi, Silvia Pacei
Format: Article
Language:English
Published: University of Bologna 2013-05-01
Series:Statistica
Online Access:http://rivista-statistica.unibo.it/article/view/3651
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spelling doaj-575f63039d4f4d33b24527288b01abbd2020-11-24T21:27:01ZengUniversity of BolognaStatistica0390-590X1973-22012013-05-0172333735610.6092/issn.1973-2201/36513397Who benefits from outsourcing? A study of one italian region’s small firmsIgnazio Drudi0Silvia Pacei1Alma Mater Studiorum - Università di BolognaAlma Mater Studiorum - Università di BolognaThis paper analyses the production outsourcing of Emilia-Romagna’s small clothing manufacturers, using a new rich firm-level dataset. This dataset has the considerable advantage of containing interesting information about the outsourcing of certain phases of the production process that no other data source offers. The production process of these firms, which may be of a totally integrated or more fragmented nature, is thus analysed, and the effects of outsourcing are investigated. Since the analysis of the impact of outsourcing at the firm level has always focused more on productivity than on profitability (Olsen 2006), we are going to study the impact of outsourcing decisions both on a firm’s value added and on its gross earnings, by estimating econometric models. These models allow us to incorporate a firm’s outsourcing propensity into the impact evaluation, by adjusting for possible selection bias (Amemija 1985; Schnedler 2005). Our findings show that outsourcing has a positive effect on both productivity and, in particular, on profitability, thus confirming that Italian small clothing businesses tend to place immediate profit before productivity and growth.http://rivista-statistica.unibo.it/article/view/3651
collection DOAJ
language English
format Article
sources DOAJ
author Ignazio Drudi
Silvia Pacei
spellingShingle Ignazio Drudi
Silvia Pacei
Who benefits from outsourcing? A study of one italian region’s small firms
Statistica
author_facet Ignazio Drudi
Silvia Pacei
author_sort Ignazio Drudi
title Who benefits from outsourcing? A study of one italian region’s small firms
title_short Who benefits from outsourcing? A study of one italian region’s small firms
title_full Who benefits from outsourcing? A study of one italian region’s small firms
title_fullStr Who benefits from outsourcing? A study of one italian region’s small firms
title_full_unstemmed Who benefits from outsourcing? A study of one italian region’s small firms
title_sort who benefits from outsourcing? a study of one italian region’s small firms
publisher University of Bologna
series Statistica
issn 0390-590X
1973-2201
publishDate 2013-05-01
description This paper analyses the production outsourcing of Emilia-Romagna’s small clothing manufacturers, using a new rich firm-level dataset. This dataset has the considerable advantage of containing interesting information about the outsourcing of certain phases of the production process that no other data source offers. The production process of these firms, which may be of a totally integrated or more fragmented nature, is thus analysed, and the effects of outsourcing are investigated. Since the analysis of the impact of outsourcing at the firm level has always focused more on productivity than on profitability (Olsen 2006), we are going to study the impact of outsourcing decisions both on a firm’s value added and on its gross earnings, by estimating econometric models. These models allow us to incorporate a firm’s outsourcing propensity into the impact evaluation, by adjusting for possible selection bias (Amemija 1985; Schnedler 2005). Our findings show that outsourcing has a positive effect on both productivity and, in particular, on profitability, thus confirming that Italian small clothing businesses tend to place immediate profit before productivity and growth.
url http://rivista-statistica.unibo.it/article/view/3651
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