Journal Article

Modes of International Sourcing and the Competitiveness of Firms: An Analysis of European Survey Data


  • Neureiter
  • M.
  • Nunnenkamp
  • P.
Publication Date

We draw on a recent survey of European companies to differentiate between alternative modes of international outsourcing as possible determinants of market, cost and knowledge-related aspects of the competitiveness of firms. We find that internalized modes are often superior to outside options, and using existing subsidiaries tends to be more (cost) effective than undertaking new greenfield FDI.


JEL Classification
F23, L24, L25

Key Words

  • competitiveness of firms
  • core and support functions
  • cost reduction
  • FDI
  • international sourcing
  • Market Access