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Why Do Firms Disintegrate? Towards an Understanding of the Firm-level Decision to Subcontract and its Implications for Labor

In: Labor and the Globalization of Production

Author

Listed:
  • Asad Sayeed
  • Radhika Balakrishnan

Abstract

The post cold-war global economy is characterized by the twin phenomena of disintegration of the production process and the integration of the world economy through trade (Feenstra, 1998). Although the phenomenon of disintegration of the production process has been observed over the last three decades, it has accelerated with trade and financial sector liberalization in the post cold-war world order. In this context, flexible production systems with vertical and at times horizontal disintegration are seen as increasingly profitable. This is especially true with regard to out-sourcing of production to developing countries. Korzeniewicz and Martin (1994) conceptualize this phenomenon as characterized by a new global division of labor.

Suggested Citation

  • Asad Sayeed & Radhika Balakrishnan, 2004. "Why Do Firms Disintegrate? Towards an Understanding of the Firm-level Decision to Subcontract and its Implications for Labor," Palgrave Macmillan Books, in: William Milberg (ed.), Labor and the Globalization of Production, chapter 5, pages 104-118, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-52396-8_5
    DOI: 10.1057/9780230523968_5
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    Cited by:

    1. Neethi P, 2010. "Globalisation Lived Locally: New Forms of Control, Conflict and Response Among Labour in Kerala, Examined Through a Labour Geography Lens," Working Papers id:2431, eSocialSciences.
    2. Shaianne T. Osterreich, 2019. "Gender and Comparative Advantage: Feminist–Heterodox Theorizing about Globalization," Economies, MDPI, vol. 7(2), pages 1-12, May.

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