Vertical integration boosts productivity

Abstract

In the current economic crisis, many companies are being forced to look for ways of increasing productivity. Many enterprises, in particular vehicle manufacturers and automotive suppliers, have focused on reducing their vertical integration by means of outsourcing. However, recent studies by the Fraunhofer ISI demonstrate that companies with a high level of vertical integration are more productive. Therefore, it is important to carry out a critical review of outsourcing and, where necessary, to investigate strategic insourcing measures.