Spatial Agglomeration, Technology And Outsourcing Of Knowledge Intensive Business Services.
- Topics:
- Outsourced Services
- Tags:
- Business Operations,
- It Operations,
- Knowledge,
- Manufacturing,
- Manufacturing Company,
- Outsource,
- Outsourcing,
- Outsourcing & Subcontracting,
- University Of Bologna
- Source:
- University of Bologna
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Overview: Aim of this paper is to explore the main drivers of outsourcing of knowledge intensive business services by Italian manufacturing firms. While anecdotal and empirical evidence has emphasized labor cost and scale economies as behind firms' choices to outsource production or service activities, here the authors focus on spatial agglomeration and technology as important factors. Using microeconomic data on a repeated cross-section of Italian manufacturing firms for the period 1998-2003, a two-stage model is developed in order to avoid selection bias: first, the determinants of the firm's decision is estimated to outsource business-related services; second, the main factors underlying the intensity and complexity of KIBS outsourcing are estimated, expressed by the number of service activities that are externalized.
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Format: PDF | Size: 315KB | Date: Jul 2007 | Pages: 31
