Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19

In this paper, we study the firm’s boundaries in times of COVID-19. Ownership and location decisions govern sourcing and shape firms’ boundaries. Adopting incomplete contracts theory/international economics perspective, we investigate the determinants of ownership and location decisions and explore...

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Autores principales: Bernasconi, Marta, Galetti, Sara, Gattai, Valeria, Natale, Piergiovanna
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9243944/
http://dx.doi.org/10.1007/s10842-022-00387-7
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author Bernasconi, Marta
Galetti, Sara
Gattai, Valeria
Natale, Piergiovanna
author_facet Bernasconi, Marta
Galetti, Sara
Gattai, Valeria
Natale, Piergiovanna
author_sort Bernasconi, Marta
collection PubMed
description In this paper, we study the firm’s boundaries in times of COVID-19. Ownership and location decisions govern sourcing and shape firms’ boundaries. Adopting incomplete contracts theory/international economics perspective, we investigate the determinants of ownership and location decisions and explore COVID-19–induced changes in firms’ boundaries. Drawing on survey data from a sample of Italian firms, our estimates suggest that input specificity drives the ownership decision, whereas the location decision depends on productivity. Few firms re-consider sourcing because of the pandemic, suggesting a great deal of inertia in firm’s boundaries.
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spelling pubmed-92439442022-06-30 Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19 Bernasconi, Marta Galetti, Sara Gattai, Valeria Natale, Piergiovanna J Ind Compet Trade Article In this paper, we study the firm’s boundaries in times of COVID-19. Ownership and location decisions govern sourcing and shape firms’ boundaries. Adopting incomplete contracts theory/international economics perspective, we investigate the determinants of ownership and location decisions and explore COVID-19–induced changes in firms’ boundaries. Drawing on survey data from a sample of Italian firms, our estimates suggest that input specificity drives the ownership decision, whereas the location decision depends on productivity. Few firms re-consider sourcing because of the pandemic, suggesting a great deal of inertia in firm’s boundaries. Springer US 2022-06-28 2022 /pmc/articles/PMC9243944/ http://dx.doi.org/10.1007/s10842-022-00387-7 Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) .
spellingShingle Article
Bernasconi, Marta
Galetti, Sara
Gattai, Valeria
Natale, Piergiovanna
Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19
title Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19
title_full Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19
title_fullStr Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19
title_full_unstemmed Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19
title_short Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19
title_sort contract incompleteness and the boundaries of the firm in times of covid-19
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9243944/
http://dx.doi.org/10.1007/s10842-022-00387-7
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