Outsourcing Decisions, Product Innovation and the Spatial Dimension: Evidence from the Spanish Footwear Industry

Recent studies in developed countries frequently emphasise the importance of outsourcing as a strategy for manufacturing industries to survive. However, there is little qualitative evidence that specifically describes outsourcers in mature industries with competitive problems, particularly in southern Europe. This paper attempts to fill this gap by investigating the distinctive traits of firms located in the most important Spanish footwear industrial districts. From a sample of 401 Spanish firms surveyed in January and February 2006, it was found that size, design and product innovation, prior institutional networks and location in specific industrial districts favour the development of outsourcing strategies. By contrast, clients' prior networks are negatively related with contracting-out productive activities. These results are relevant in several dimensions. However, the positive impact of some districts in the externalisation decision should be specifically mentioned. Such evidence seems to: confirm the consistency of the competition-co-operation dynamics in some geographical areas and the decline of others; and point out the existence of divergences in the outsourcing strategies at district level due to product and market characteristics.