Abstract
The work of Williamson and others shows how increasing complexity of hierarchial structures within business organizations may lead to transactions failures, resulting in the provision of certain activities outside the firm. In this context, a recent paper by Esparza discusses the importance of age and employment size of manufacturing firms to the externalization of certain low-order business services in Chicago. In this paper we compare Esparza's results with recent evidence of the external provision of certain business services by manufacturing establishments in Denver and Salt Lake City. We also explore the significance of occupational structure and plant type variables to the explanation of patterns in the external provision of a selection of low and high-order services.