Subcontracting and the performance of small and medium firms in Japan

Research output: Contribution to journalArticle

70 Citations (Scopus)

Abstract

This paper provides an empirical analysis of the choices made by Japanese firms with respect to subcontracting status, that is, whether to take in work as subcontractor, to outsource work to subcontractors, to do both or to do neither. It shows that the probability of working as a subcontractor, a choice made by many small firms in Japan, is negatively related to size, foreign sales and technological capability. Furthermore, profits do not appear to be higher for subcontracting firms; indeed, they are highest for the group that does not get involved in any type of subcontracting, whether as a supplier or as an outsourcer.

Original languageEnglish
Pages (from-to)163-175
Number of pages13
JournalSmall Business Economics
Volume18
Issue number1-3
DOIs
Publication statusPublished - 2002

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Subcontractors
Subcontracting
Japan
Empirical analysis
Technological capability
Suppliers
Profit
Japanese firms
Small firms

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Subcontracting and the performance of small and medium firms in Japan. / Kimura, Fukunari.

In: Small Business Economics, Vol. 18, No. 1-3, 2002, p. 163-175.

Research output: Contribution to journalArticle

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