Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Determinants of Outsourcing in the Automobile Sector in India


Affiliations
1 Department of Humanities & Social Sciences, Indian Institute of Technology Madras, Chennai, India
2 Madras School of Economics, Chennai, India
     

   Subscribe/Renew Journal


This study involves the determination of outsourcing based on the market structure, technology imports and technical efficiency for the automotive sector in India. An important characteristic of this study is that it divides the automotive sector into two subsectors: (1) the automobile ancillaries sectors, which provides the parts and constitute the upstream firms and (2) the automobile assemblers who assemble the automobiles and sell them to the consumers. Our analysis confirms the fact that when the data is segregated in the two sectors, factors like technical efficiency of firms have opposite effect on the outsourcing tendencies.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abraham, G. & Taylor, S. K. (1996), “Firms’ Use of Outside Contractors: Theory and Evidence”, Journal of Labor Economics, 14(3): 294-42
  • Aghion, P., N. Bloom, P. Howitt, R. Griffith & R. A. Blundell (2006), “Competition and Innovation: An Inverted U Relationship”, Quarterly Journal of Economics, 120(2), 701-28
  • Beck, N. & J. N. Katz, (1995), “What to Do (and not to do) With Time-series Cross-section Data”, American Political Science Review, 89: 634-47
  • Campa, J. & Goldberg, L. (1997), “The Evolving External Orientation of Manufacturing Industries: Evidence from Four Countries”, NBER Working Paper, No. 5958
  • Coelli, T. J. (1996), “A Guide to Frontier Version 4.1: A Computer Program for Stochastic Frontier Production and Cost Function Estimation”, Working Paper No.07, Center for Efficiency and Productivity Analysis, University of New England, Armidale, Australia
  • Domberger, S. (1999), “The Contracting Organization: A Strategic Guide to Outsourcing”, Oxford: Oxford University Press
  • Economics Times, (2014), http://economictimes.indiatimes.com/et500
  • Elfring, T. &G. Baven (1994), “Outsourcing Technical Services: Stages of Development”, Long Range Planning, 27(5): 42–51
  • Goldar, B. N., V. S. Renganathan & R. Banga (2004), “Ownership and Efficiency in Engineering Firms: 1990-91 to 1999-2000”, Economic and Political Weekly, 39(5):44147
  • Gray, J. V., A. V. Roth & B. Tomlin (2009), “The Influence of Cost and Quality Priorities on the Propensity to Outsource Production”, Decision Sciences, 40(4): 697–726
  • Grossman, S. J. & E. Helpman (2002a), “Integration versus Outsourcing in Industry Equilibrium”, Quarterly Journal of Economics, 117 (1): 85-120
  • _______________ (2002b), “Outsourcing in a Global Economy”, National Bureau of Economic Research (NBER), Working Paper No. 8728
  • Insinga, R. C. & M. J. Werle (2000), “Linking Outsourcing to Business Strategy”, The Academy of Management Executive, 14(4):58-70
  • McMillan, J. (1995): “Reorganizing Vertical Supply Relationships”, in Siebert, H. (ed.), Trends in Business Organization: Do Participation and Cooperation Increase Competitiveness, J.C.B. Mohr, Tübingen
  • Mol, M. J., R. J. M. van Tulder & P. R. Beije (2005), “Antecedents and Performance Consequences of International Outsourcing”, International Business Review, 14(5): 599-617
  • Parks, R. (1967), “Efficient Estimation of a System of Regression Equations when Disturbances Are Both Serially and Contemporaneously Correlated”, Journal of the American Statistical Association, 62:500-09
  • Schmidt-Ehmcke, J. (2009), “Technology, Firm Performance and Market Structure”, Doctoral Dissertation, Unpublished, available at http://d-nb.info/999909207/34
  • Shy, O. & R. Stenbacka (2003), “Strategic Outsourcing”, Journal of Economic Behavior & Organization, 50: 203-24
  • Tang, D. & X. Qian (2008), “Product Lifecycle Management for Automotive Development focusing on Supplier Integration”, Computers in Industry, 59 (2-3): 288-95
  • The Economist, (2002), “The Fight for Digital Dominance, Special Report Nokia vs Microsoft” : 67-69
  • Ukalkar, S. (2000), Strategic Procurement Management for Competitive Advantage, Oxford University Press, New Delhi

Abstract Views: 236

PDF Views: 1




  • Determinants of Outsourcing in the Automobile Sector in India

Abstract Views: 236  |  PDF Views: 1

Authors

Santosh K. Sahu
Department of Humanities & Social Sciences, Indian Institute of Technology Madras, Chennai, India
Ishan Roy
Madras School of Economics, Chennai, India

Abstract


This study involves the determination of outsourcing based on the market structure, technology imports and technical efficiency for the automotive sector in India. An important characteristic of this study is that it divides the automotive sector into two subsectors: (1) the automobile ancillaries sectors, which provides the parts and constitute the upstream firms and (2) the automobile assemblers who assemble the automobiles and sell them to the consumers. Our analysis confirms the fact that when the data is segregated in the two sectors, factors like technical efficiency of firms have opposite effect on the outsourcing tendencies.

References