Hightech-Flyers: Contractual Type, Organizational Form, and the Timing to O shore in the Global HDD Industry
نویسنده
چکیده
This paper studies rms' decision to start o shore production. I construct a comprehensive panel dataset of 178 rms producing hard disk drives (HDDs) in the world between 1976 and 1998, which records contractual types ( make or buy ), destination countries, and the timing of o shoring as well as rms' organizational forms. I nd that (1) o shorers, particularly earlier ones, survive better in the long run, (2) rms tend to make in the South whereas contract manufacturing occurs in the North, and (3) specialized startups are more inclined to o shore than conglomerates or vertically integrated rms. These heterogeneities are previously unnoticed but likely to shape the course of industry evolution in a broader set of manufacturing sectors.
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