Strategic Management and the Decision to Subcontract

Subcontracting labour is an area which is likely to grow in importance in the 1990's: it has recently been highlighted as the major obstacle to growth in industries like construction; that is, cohorts of skilled male labour. In doing so it reaches those parts of the labour market which are not touched by other forms of distancing strategy: temporary work and part‐time work are both mainly female intensive and/or low skill. It has been firmly identified as a key means by which firms seek flexibility; indeed, it has been described as the ‘dominant form of distancing strategy’. Despite its importance it does not appear to have attracted the degree of research enjoyed by temporary work and part‐time work and many of the judgements made about it appear to be impressionistic.