Does IT outsourcing increase firm success? : an empirical assessment using firm-level data

Ohnemus, Jörg

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URN: urn:nbn:de:bsz:180-madoc-18849
Document Type: Working paper
Year of publication: 2007
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C21 D24 J21 J24 ,
Subject headings (SWD): Outsourcing , Produktivität , Wachstum , Arbeitsmarkt
Keywords (English): IT Outsourcing , Productivity , Endogenous Switching Regression , Employment Growth
Abstract: Using German firm-level data, an endogenous switching regression model within a production function framework is estimated in order to explore differences in labor productivity between IT outsourcing and non-IT outsourcing firms. This approach takes possible complementarities between IT outsourcing and production input factors into account and further allows IT outsourcing to affect any factor of the production function. Estimation results show that IT outsourcing firms produce more efficiently than non-IT outsourcing firms. Furthermore, they have a significantly larger output elasticity with respect to computer workers. Therefore computer workers and IT outsourcing can be interpreted as complementary factors positively affecting firms’ labor productivity. An additional analysis indicates that IT outsourcing, in the medium-term, has a positive effect on firms’ employment growth rate.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.

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