ABSTRACT
This paper concerns the effects of the search for dynamic efficiency via 'flexibilisation' by major oil and chemical firms under corporate strategy constraints, specifically in the area of the subcontracting of plant maintenance, a high-risk, high-value activity in process manufacture. The study aimed to discover the effects of increased subcontracting of maintenance services on the viability of integrated manufacturing within the corporate strategy of the major oil and chemical companies. Data comprised interviews with maintenance managers in ten major oil refineries, five chemical plants, three maintenance contractors and with officials of three trade unions: It revealed a variety of weak governance structures to control contractors: such as employer panels, lead-contractor hierarchies, alliances and integrated teamworking, and processural structures such as labour contracts (site or national agreements), performance-related, fixed-price, fixed-term and contracts. The paper argues that strategic outsourcing has not been a success, and the data provides no direct evidence of the extensive use of competitive market forces in controlling contractor quality, price or delivery.
