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The Organizational Correlates And Consequences Of Subcontracting: Evidence From A Survey Of South Wales Businesses

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  • Mike Bresnen
  • Carolyn Fowler

Abstract

Recent interest in the growth of subcontracting, as part of a broader trend towards greater ‘flexibility’in forms of employment relationship, has not as yet been matched by a full consideration of its organizational and managerial implications. In particular, the question of whether or not subcontracting has an impact upon, or is affected by, the organization's structural characteristics remains largely unexplored. the aim of this article is to report findings from a detailed study of subcontracting practices across a sample of British industry, which focuses upon the relationship between subcontracting and organizational characteristics. the results indicate several important points about the practice. Firstly, that there is wide variation in the use of subcontracting across industry, although the overall extent is limited. Secondly, that variation in the practice is significantly related to basic firm characteristics ‐ namely, industrial sector, type of production system and pattern of ownership and control. Thirdly, that, on balance, subcontracting is associated with more, not less, structural complexity. Finally, that this greater complexity is found in particular types of firms ‐ notably, outside the manufacturing sector, in mass and process production systems and amongst British independents and subsidiaries, rather than in their foreign competitors.

Suggested Citation

  • Mike Bresnen & Carolyn Fowler, 1994. "The Organizational Correlates And Consequences Of Subcontracting: Evidence From A Survey Of South Wales Businesses," Journal of Management Studies, Wiley Blackwell, vol. 31(6), pages 847-864, November.
  • Handle: RePEc:bla:jomstd:v:31:y:1994:i:6:p:847-864
    DOI: 10.1111/j.1467-6486.1994.tb00642.x
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    Cited by:

    1. Samar Kumar Mishra & Bimal Kishore Sahoo, 2022. "Subcontracting in Unorganized Manufacturing: A Mode of Survival or a Strategy of Growth?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(4), pages 1029-1051, December.
    2. Lewin, Jeffrey E., 2003. "An empirical investigation of the effects of downsizing on buyer-seller relationships," Journal of Business Research, Elsevier, vol. 56(4), pages 283-293, April.
    3. Maike Scherrer-Rathje & Patricia Deflorin & Gopesh Anand, 2010. "Outsourcing and its Impact on Manufacturing Flexibility: Contingencies Matter," Working Papers 0125, University of Zurich, Institute for Strategy and Business Economics (ISU).
    4. Chung, Seungwha (Andy) & Kim, Gyeong Mook, 2003. "Performance effects of partnership between manufacturers and suppliers for new product development: the supplier's standpoint," Research Policy, Elsevier, vol. 32(4), pages 587-603, April.

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