THE ORGANIZATIONAL CORRELATES AND CONSEQUENCES OF SUBCONTRACTING - EVIDENCE FROM A SURVEY OF SOUTH WALES BUSINESSES

Recent interest in the growth of subcontracting, as part of a broader trend towards greater 'flexibility' in forms of employment relationshi p, has not as yet been matched by a full consideration of its organiza tional and managerial implications. In particular, the question of whe ther or not subcontracting has an impact upon, or is affected by, the organization's structural characteristics remains largely unexplored. The aim of this article is to report findings from a detailed study of subcontracting practices across a sample of British industry, which f ocuses upon the relationship between subcontracting and organizational characteristics. The results indicate several important points about the practice. Firstly, that there is wide variation in the use of subc ontracting across industry, although the overall extent is limited. Se condly, that variation in the practice is significantly related to bas ic firm characteristics - namely, industrial sector, type of productio n system and pattern of ownership and control. Thirdly, that, on balan ce, subcontracting is associated with more, not less, structural compl exity. Finally, that this greater complexity is found in particular ty pes of firms - notably, outside the manufacturing sector, in mass and process production systems and amongst British independents and subsid iaries, rather than in their foreign competitors.