The orthodox explanation is the belief that fragmentation of production is a strategy, by enabling specialisation according to the most efficient location for each production component, that ensures a more complete exploitation of scale economies and flexibility in the face of demand shocks (i.e. turning 'fixed costs' into 'variable costs'). We'd also have to factor in the need for increased product differentiation and therefore a move away from rigid firm structures. Any attempt to suggest that there is a simple supply-side 'fix', such as the standard tax rant, is then doomed. Doomed I tell yer!

__________________
I was angry with my friend: I told my wrath, my wrath did end. I was angry with my foe: I told it not, my wrath did grow. And I watered it in fears, Night and morning with my tears; And I sunnèd it with smiles, And with soft deceitful wiles. And it grew both day and night, Till it bore an apple bright; And my foe beheld it shine, And he knew that it was mine, And into my garden stole, When the night had veiled the pole: In the morning glad I see; My foe outstretched beneath the tree.