Understanding Outsourcing Relations in the Automobile Industry.

Outsourcing---the practice of contracting out certain stages of production to external suppliers---is an increasingly important feature of the globalized economy. This dissertation studies outsourcing relationships in the automotive industry to refine understanding of the theory of the firm. It is composed of three essays, each covering a different question on the structure of outsourcing relationships. The first essay investigates the determinants of supplier choice, where three dimensions of buyer-supplier proximity are empirically evaluated: geographical, cultural and relational proximity. The second essay investigates the choice of relationship governance, by estimating how the complexity and codifiability of transactions, and the capability of suppliers can influence the way that firms conduct their outsourcing relationships. And the third essay investigates technology adoption in outsourcing, by modeling and testing the link between innovation and the choice to maintain a long-term relationship.