European Business Schools Librarian's Group

Les Cahiers de Recherche,
HEC Paris

No 990: European Management Journal

Guillaume Chanson () and Bertrand V. Quélin ()

Abstract: This paper is devoted to the pattern of activity within large companies, through the two criteria of decentralization and contracting out. Our goal is to understand whether the determinants are identical for both internal and external boundaries of the firm. One literature stream contributes to the analysis of the internal structure and organization of divisional companies, studying the functions assigned to headquarters or divisions. Another part of the literature has focused on the boundaries of the firm issues and the firm’s core activities. Few works are at the junction of these two traditions. This study builds on an empirical study dedicated to the book publishing industry. Our analysis leads to discuss determinants of internal and external borders. We show that functions or activities with high potential of economies of scale are mainly centralized and internalized. On reverse, those related to core business and non-programmable functions are mostly at divisional level and contracted out.

Keywords: Boundaries of the firm; Centralization; Contracting out; Central services

JEL-codes: G00

34 pages, February 1, 2013

Full text files

papers.cfm?abstract_id=2294841 PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Antoine Haldemann ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-22 16:53:01.