International Modularity and Offshoring in Spanish Industry

Sandra Valle, Lucía Avella, Francisco García

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DOI: 10.4236/me.2011.24076                

Abstract

This paper aims to analyze participation by Spanish industrial firms in the marked process of international production modularity or fragmentation that is taking place on a global scale. It studies whether firms use offshoring (that is, transfer activities abroad), what type of activities are offshored, the type of offshoring used, the main target countries, the reasons for offshoring and the benefits it brings. Qualitative research into four Spanish business groups shows that they all use offshoring, mostly outsourcing manufacturing to international suppliers. When choosing offshore location, these groups aim to achieve not only cost savings but also advantages from the agglomeration of the agents with which they need to interact, as well as access to new markets and relevant resources (infrastructure, auxiliary industry, production capacity, technology and know-how).

Keywords

International Modularity, Offshoring, Captive Offshoring, Offshore Outsourcing

Conflicts of Interest

The authors declare no conflicts of interest.

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