Productivity effects of business process outsourcing : a firm-level investigation based on panel data


Ohnemus, Jörg


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URL: http://ub-madoc.bib.uni-mannheim.de/2636
URN: urn:nbn:de:bsz:180-madoc-26368
Document Type: Working paper
Year of publication: 2009
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: L80 L60 L24 D24 C23 ,
Subject headings (SWD): Deutschland , Outsourcing , Produktivität , Unternehmensentwicklung , Schätzung
Keywords (English): Business Process Outsourcing (BPO) , Productivity , Panel Data , Olley-Pakes , System-GMM
Abstract: This paper analyses the impact of business process outsourcing (BPO) on firm productivity based on a comprehensive German firm-level panel data set covering manufacturing and service industries. The growing importance of service inputs into the production process is undisputed. Firms increasingly buy all or at least parts of selected services they need from external service providers. This is especially true for services which rely to a great extent on new information and communication technologies. Outsourcing firms can concentrate on their core competencies. Additionally, they benefit from the expertise of the external service provider. Finally, external vendors are able to provide services at lower price because of scale effects. By estimating a production function, I show that BPO has a positive and significant impact on firm-level productivity. The results are robust across different estimation techniques.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Ohnemus, Jörg (2009) Productivity effects of business process outsourcing : a firm-level investigation based on panel data. Open Access [Working paper]
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