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Journal of Economic Behavior & Organization
Article . 2013 . Peer-reviewed
License: Elsevier TDM
Data sources: Crossref
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Hal
Article . 2013
Data sources: Hal
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Productivity, relationship-specific inputs and the sourcing modes of multinationals

Authors: Defever, Fabrice; Toubal, Farid;

Productivity, relationship-specific inputs and the sourcing modes of multinationals

Abstract

We investigate the roles of productivity and the specificity of inputs for the international sourcing strategy of firms which are part of a multinational network. We present a framework in which firms decide to import from a foreign independent supplier or from their related party abroad according to these two dimensions. We use a detailed survey that provides a detailed geographical breakdown of French firms' imports at the product level as well as the sourcing mode used for each transaction. The dataset also provides information to estimate the firms' productivity and their intensity in relationship-specific inputs. After controlling for countries of origin, products and sectors specific effects, the empirical results provide evidence that for the most productive multinationals the likelihood of trading through an independent supplier is higher especially if they use relationship-specific inputs intensively.

Countries
France, United Kingdom
Keywords

JEL: L - Industrial Organization/L.L2 - Firm Objectives, 330, JEL: F - International Economics/F.F2 - International Factor Movements and International Business/F.F2.F23 - Multinational Firms • International Business, JEL: F - International Economics/F.F1 - Trade/F.F1.F14 - Empirical Studies of Trade, HB, and Behavior/L.L2.L22 - Firm Organization and Market Structure, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, and Behavior/L.L2.L23 - Organization of Production, Outsourcing, Incomplete contracts, incomplete contracts; intra-group trade; outsourcing; productivity, Intra-group trade, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Organization, Productivity, jel: jel:F14, jel: jel:F23, jel: jel:L22, jel: jel:L23

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
48
Top 10%
Top 10%
Top 10%
Green
bronze