Abstract

Outsourcing is beneficial for enterprises to integrate production factors, strengthen core forces and realize value chain appreciation. Based on the data of 42 agricultural listed companies from 2,015 to 2,019, the outsourcing level of agricultural enterprises was measured, and the influencing factors of agricultural enterprise outsourcing were analyzed. The results show that the level of outsourcing of agricultural enterprises in 2015 to 2,019 showed a slow downward trend, the outsourcing level of agricultural enterprises has policy continuity, and the outsourcing level of the current period is affected by the outsourcing level of the previous period; the larger the market scale, the higher the proportion of business outsourcing; and the transaction costs significantly inhibit the outsourcing decision of agricultural enterprises. Finally, the paper puts forward the policy suggestions to promote the healthy development of the agricultural outsourcing market.

Highlights

  • With the rapid development of information technology and the intensification of market competition, it has become an important mode of production, operation and management for enterprises to control the value chain link that can generate core competence internally and to subcontract non strategic operations

  • As the primary agricultural products required by agricultural enterprises are exposed to greater natural and market risks, with high transaction costs and uncertainties, the way of obtaining raw materials is an important factor considered by agricultural enterprises in the operation process

  • Due to the rapid development of agricultural enterprises and the important role of agricultural enterprises in the national economy, this paper takes agricultural enterprises as an example to analyze the motivation of enterprise outsourcing, on this basis, designs a method to measure the degree of outsourcing of agricultural enterprises, and analyzes the relevant factors from an empirical perspective, in order to seek a reasonable solution for the development of outsourcing business activities of agricultural enterprises in China

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Summary

Introduction

With the rapid development of information technology and the intensification of market competition, it has become an important mode of production, operation and management for enterprises to control the value chain link that can generate core competence internally and to subcontract non strategic operations. Qiu Tongwei (2,018)[6] based on the classic division of labor theory, discussed the complete replacement of self-sufficiency and outsourcing services, the relevance of partial replacement and complete complement, and the impact on the vertical division of labor in agriculture; Sun Dingqiang, Misgina Asmelas, Lu Yutong, et al (2,018)[7], from the perspective of operation quality supervision and risk preference of farmers, considered that the significant degree of risk preference and operation quality supervision of farmers affected the demand for outsourcing services in different production links of farmers to a certain extent.In the research similar to the research topic in this paper, Chen Mei and Maoning (2,015)[8] based on the transaction cost theory and option transaction governance theory, discussed the comprehensive impact of the uncertainty of the counterparty's opportunistic behavior and the uncertainty of the objective environment on the selection of strategic raw material investment governance model, and believed that for China's dairy enterprises, the close relationship governance model (such as cooperatives and wars)Strategic alliance) is a better management model for raw milk investment. The contributions of this paper mainly include: (1) measuring the outsourcing level of agricultural listed companies from 2,015 to 2,019, and comparing the differences between the outsourcing levels of different sub sectors; (2) analyzing the impact of corporate characteristics on the outsourcing level, identifying the main factors affecting the outsourcing decisions of agricultural sub sectors

Basic situation of outsourcing of agricultural enterprises in China
Theoretical analysis and assumptions
Transaction costs
Proportion of specific investment
Corporate capability
Research and development
Model and data description
Regression results and analysis
Endogenous problems
Findings
CONCLUSION AND SUGGESTIONS
Full Text
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