Chapter

The Shifting Boundaries of Organizations

Simon Domberger

in The Contracting Organization

Published in print November 1998 | ISBN: 9780198774570
Published online November 2003 | e-ISBN: 9780191596148 | DOI: http://dx.doi.org/10.1093/0198774575.003.0002
 The Shifting Boundaries of Organizations

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This chapter examines the shifting boundaries of organizations––what they choose to do for themselves and what they increasingly rely on the market for. It briefly considers changes in the horizontal as well as the vertical boundaries of firms. Horizontal boundaries determine what range of output markets firms choose to be in, over and above their principal business activity. Vertical boundaries are determined by the proportion of activities in a firm's value chain let out to external providers of goods and services. The chapter also examines the underlying factors behind these organizational changes, in both the private and the public sectors. In addition, it contains a brief overview of international contracting trends in the G5 economies (USA, UK, France, Germany, Japan) and in Australia.

Keywords: Australia; contracting out; France; G5 economies; Germany; Japan; organizational boundaries; organizational change; organizations; output markets; outsourcing; UK; USA

Chapter.  7524 words. 

Subjects: Microeconomics

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