On the Grouping of Tasks into Firms: Make-or-Buy with Interdependent Parts

We study the division of labor within production systems and look for the optimal grouping of tasks into firms. Using a unique dataset on the global automobile industry, we present evidence consistent with the prediction that pairs of tasks requiring more frequent mutual adaptation are more likely t...

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Bibliographic Details
Main Authors: Novak, Sharon (Economist), Wernerfelt, Birger
Other Authors: Sloan School of Management
Format: Article
Language:en_US
Published: Wiley-Blackwell Pubishers 2013
Online Access:http://hdl.handle.net/1721.1/77919
https://orcid.org/0000-0003-0009-6236